Sumitomo Mitsui Financial Grp (NYSE:SMFG) and Woori Financial Group (NYSE:WF) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, profitability, earnings, dividends and valuation.

Dividends

Sumitomo Mitsui Financial Grp pays an annual dividend of $0.13 per share and has a dividend yield of 2.3%. Woori Financial Group pays an annual dividend of $1.44 per share and has a dividend yield of 6.5%. Sumitomo Mitsui Financial Grp pays out 13.0% of its earnings in the form of a dividend. Woori Financial Group pays out 20.7% 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. Sumitomo Mitsui Financial Grp has raised its dividend for 2 consecutive years and Woori Financial Group has raised its dividend for 2 consecutive years.

Risk & Volatility

Sumitomo Mitsui Financial Grp has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500. Comparatively, Woori Financial Group has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500.

Profitability

This table compares Sumitomo Mitsui Financial Grp and Woori Financial Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sumitomo Mitsui Financial Grp 13.25% 6.89% 0.36%
Woori Financial Group 15.65% 7.44% 0.50%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Sumitomo Mitsui Financial Grp and Woori Financial Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sumitomo Mitsui Financial Grp 0 0 2 0 3.00
Woori Financial Group 0 2 0 0 2.00

Earnings & Valuation

This table compares Sumitomo Mitsui Financial Grp and Woori Financial Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sumitomo Mitsui Financial Grp $48.89 billion 0.79 $6.48 billion $1.00 5.66
Woori Financial Group $9.18 billion 0.58 $1.62 billion $6.96 3.19

Sumitomo Mitsui Financial Grp has higher revenue and earnings than Woori Financial Group. Woori Financial Group is trading at a lower price-to-earnings ratio than Sumitomo Mitsui Financial Grp, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

2.0% of Sumitomo Mitsui Financial Grp shares are held by institutional investors. Comparatively, 1.1% of Woori Financial Group shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Sumitomo Mitsui Financial Grp beats Woori Financial Group on 9 of the 14 factors compared between the two stocks.

About Sumitomo Mitsui Financial Grp

Sumitomo Mitsui Financial Group, Inc., together with its subsidiaries, provides commercial banking, leasing, securities, consumer finance, and other services primarily in Japan. It operates through four segments: Wholesale Business, Retail Business, International Business, and Global Markets Business. The Wholesale Business segment provides financing, investment management, risk hedging and settlement services, as well as financial solutions for mergers and acquisition and other advisory services and leasing, primarily for large-and mid-sized corporate clients; and various leasing services, including equipment, and operating and leveraged leasing. The Retail Business segment offers wealth management, settlement services, consumer finance, and housing loans. The International Business segment provides loans, deposits, clearing services, trade finance, project finance, loan syndication, derivatives, and global cash management services; underwriting services; and leasing services related to the construction machinery, transportation equipment, industrial machinery, medical equipment, and aircraft leasing. As of March 31, 2018, this segment's network consisted of 18 branches, 22 sub-branches, and 4 representative offices. The Global Markets Business segment offers foreign exchange products, derivatives, bonds, stocks and other marketable financial products, and undertakes asset liability management operations. It also offers system development, data processing, management consulting, and economic research services; and investment advisory and investment trust management services. The company was founded in 2002 and is headquartered in Tokyo, Japan.

About Woori Financial Group

Woori Financial Group Inc. provides commercial banking products and services to retail and individual customers, and corporations. The company offers salary, fixed deposit, savings, and ordinary and business deposit products; and professional, deposit mortgage, apartment, and mortgage loans, as well as corporate operating, facility, and policy loans. It also provides inquiry and retirement pension, bulk and automatic transfer, cash management, and foreign direct investment services. In addition, the company offers foreign currency, specialized remittance, expat banking, foreign exchange inquiry, exchange limit information, foreign currency remittance information, and foreign currency deposit information services; and other products and services, including insurance, fund, and custody services, as well as banking management services. Further, it provides system software development and maintenance, finance, other credit finance, credit information, security investment, and other services. As of June 30, 2018, the company operated approximately 880 branches and offices in Korea, and 23 branches and offices internationally. Woori Financial Group Inc. was founded in 1899 and is headquartered in Seoul, South Korea.

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