ICICI Bank (NYSE:IBN – Get Rating) and First Republic Bank (OTCMKTS:FRCB – Get Rating) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, earnings, valuation and risk.
Institutional & Insider Ownership
15.9% of ICICI Bank shares are held by institutional investors. Comparatively, 95.2% of First Republic Bank shares are held by institutional investors. 0.7% of First Republic Bank shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares ICICI Bank and First Republic Bank’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ICICI Bank | 22.29% | 15.46% | 1.73% |
| First Republic Bank | 20.45% | 11.26% | 0.72% |
Risk & Volatility
Dividends
ICICI Bank pays an annual dividend of $0.11 per share and has a dividend yield of 0.5%. First Republic Bank pays an annual dividend of 1.08 per share and has a dividend yield of 280.0%. ICICI Bank pays out 9.7% of its earnings in the form of a dividend. First Republic Bank pays out 14.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. ICICI Bank has increased its dividend for 2 consecutive years.
Valuation & Earnings
This table compares ICICI Bank and First Republic Bank’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ICICI Bank | $16.08 billion | 4.99 | $4.25 billion | $1.13 | 20.35 |
| First Republic Bank | $6.75 billion | 0.01 | $1.67 billion | 7.48 | 0.05 |
ICICI Bank has higher revenue and earnings than First Republic Bank. First Republic Bank is trading at a lower price-to-earnings ratio than ICICI Bank, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and price targets for ICICI Bank and First Republic Bank, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ICICI Bank | 0 | 0 | 1 | 0 | 3.00 |
| First Republic Bank | 0 | 0 | 0 | 0 | N/A |
Summary
ICICI Bank beats First Republic Bank on 10 of the 15 factors compared between the two stocks.
About ICICI Bank
ICICI Bank Ltd. engages in the provision of banking and financial services, which includes retail banking, corporate banking, and treasury operations. It operates through the following segments: Retail Banking, Wholesale Banking, Treasury, Other Banking, Life Insurance, General Insurance, and Others. The Retail Banking segment includes exposures of the bank, which satisfy the four qualifying criteria of regulatory retail portfolio as stipulated by the Reserve Bank of India guidelines on the Basel III framework. The Wholesale Banking segment deals with all advances to trusts, partnership firms, companies, and statutory bodies, by the Bank which are not included in the Retail Banking segment. The Treasury segment handles the entire investment portfolio of the bank. The Other Banking segment comprises leasing operations and other items not attributable to any particular business segment of the bank. The company was founded on January 5, 1994 and is headquartered in Mumbai, India.
About First Republic Bank
First Republic offers banking for individuals and businesses, wealth management and more with a focus on tailored service and solutions. First Republic was founded in San Francisco in 1985 by James H. Herbert II with a single office and a small but dedicated staff. Years later, First Republic is one of the country’s largest banks, serving clients at more than 80 Preferred Banking Offices across the United States and through online banking services. First Republic prides itself on its convenient online presence, strong heritage and sustainable, client-centric approach that has provided consistent growth. First Republic Bank offers a full range of personal and business banking services including lending, deposit, foreign exchange and more, while First Republic Private Wealth Management provides trust, brokerage and wealth advisory services. Across all of its offerings, First Republic is committed to serving its stakeholders and clients with exceptional, personalized service, putting clients first in all that it does. Banking products and services are offered by First Republic Bank, Member FDIC and Equal Housing Lender. Investment Advisory services are provided by First Republic
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