Standard Chartered (OTCMKTS:SCBFF) vs. Societe Generale Group (OTCMKTS:SCGLY) Financial Analysis

Standard Chartered (OTCMKTS:SCBFF) and Societe Generale Group (OTCMKTS:SCGLY) are both large-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.

Risk and Volatility

Standard Chartered has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500. Comparatively, Societe Generale Group has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500.

Profitability

This table compares Standard Chartered and Societe Generale Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Standard Chartered	12.84%	10.88%	0.65%
Societe Generale Group	20.06%	6.18%	0.31%

Valuation & Earnings

This table compares Standard Chartered and Societe Generale Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Standard Chartered	$41.04 billion	1.30	$4.05 billion	$1.88	12.47
Societe Generale Group	$28.99 billion	1.99	$4.54 billion	$1.50	10.01

Societe Generale Group has lower revenue, but higher earnings than Standard Chartered. Societe Generale Group is trading at a lower price-to-earnings ratio than Standard Chartered, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and recommmendations for Standard Chartered and Societe Generale Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Standard Chartered	0	1	2	0	2.67
Societe Generale Group	0	2	7	0	2.78

Insider & Institutional Ownership

1.0% of Societe Generale Group shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

Standard Chartered pays an annual dividend of $0.25 per share and has a dividend yield of 1.1%. Societe Generale Group pays an annual dividend of $0.26 per share and has a dividend yield of 1.7%. Standard Chartered pays out 13.3% of its earnings in the form of a dividend. Societe Generale Group pays out 17.3% 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.

Summary

Societe Generale Group beats Standard Chartered on 8 of the 14 factors compared between the two stocks.

About Standard Chartered

Standard Chartered PLC, together with its subsidiaries, provides various banking products and services in Asia, Africa, the Middle East, Europe, and the Americas. The company operates in three segments: Corporate, Commercial & Institutional Banking; Consumer, Private & Business Banking; and Ventures. It offers retail products, such as deposits, mortgages, credit cards, and personal loans; wealth management products and services that include investments, portfolio management, insurance, and wealth advice; and transaction banking services, such as cash management, working capital, and trade financing products. The company provides financial markets products and services that comprise project and export financing; debt capital markets and leveraged financing; financing and securities services; sales and structuring; macro, commodities, and credit trading; and market research services. In addition, it offers digital banking solutions. It serves financial institutions, governments, banks, investors, corporations, small to medium-sized businesses, and individuals. Standard Chartered PLC was founded in 1853 and is headquartered in London, the United Kingdom.

About Societe Generale Group

Société Générale Société anonyme provides banking and financial services to individuals, corporates, and institutional clients in Europe and internationally. It operates through French Retail Banking, International Retail Banking & Financial Services, and Global Banking and Investor Solutions. It offers retail banking services, such as consumer credit, vehicle leasing and fleet management, online banking, wealth management, and equipment and vendor finance services; and insurance products, including home, vehicle, family, health, and mortgage insurance. The company also provides corporate and investment banking, securities, business consulting, consumer finance, advisory and financing, and asset management and private banking services. In addition, it offers brokerage, cash management, payment, factoring/reverse factoring, export financing, trade finance, cash clearing and correspondent banking, and receivables and supply chain financing services. Société Générale Société anonyme was incorporated in 1864 and is headquartered in Paris, France.