Sumitomo Mitsui Financial Group (NYSE:SMFG) & Western New England Bancorp (NASDAQ:WNEB) Head-To-Head Comparison

Sumitomo Mitsui Financial Group (NYSE:SMFG) and Western New England Bancorp (NASDAQ:WNEB) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, earnings, dividends, profitability, analyst recommendations, valuation and risk.

Analyst Ratings

This is a summary of current recommendations for Sumitomo Mitsui Financial Group and Western New England Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sumitomo Mitsui Financial Group	0	1	0	2	3.33
Western New England Bancorp	0	2	2	0	2.50

Western New England Bancorp has a consensus target price of $15.00, suggesting a potential upside of 13.64%. Given Western New England Bancorp’s higher possible upside, analysts plainly believe Western New England Bancorp is more favorable than Sumitomo Mitsui Financial Group.

Earnings & Valuation

This table compares Sumitomo Mitsui Financial Group and Western New England Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sumitomo Mitsui Financial Group	$71.68 billion	2.10	$10.45 billion	$1.34	17.58
Western New England Bancorp	$86.58 million	3.07	$15.27 million	$0.89	14.83

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

Dividends

Sumitomo Mitsui Financial Group pays an annual dividend of $0.24 per share and has a dividend yield of 1.0%. Western New England Bancorp pays an annual dividend of $0.28 per share and has a dividend yield of 2.1%. Sumitomo Mitsui Financial Group pays out 17.9% of its earnings in the form of a dividend. Western New England Bancorp pays out 31.5% 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.

Volatility and Risk

Sumitomo Mitsui Financial Group has a beta of 0.43, suggesting that its stock price is 57% less volatile than the S&P 500. Comparatively, Western New England Bancorp has a beta of 0.76, suggesting that its stock price is 24% less volatile than the S&P 500.

Institutional and Insider Ownership

3.9% of Sumitomo Mitsui Financial Group shares are held by institutional investors. Comparatively, 67.9% of Western New England Bancorp shares are held by institutional investors. 0.1% of Sumitomo Mitsui Financial Group shares are held by company insiders. Comparatively, 6.6% of Western New England Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Sumitomo Mitsui Financial Group and Western New England Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sumitomo Mitsui Financial Group	15.68%	10.57%	0.52%
Western New England Bancorp	13.27%	7.25%	0.65%

Summary

Sumitomo Mitsui Financial Group beats Western New England Bancorp on 9 of the 17 factors compared between the two stocks.

About Sumitomo Mitsui Financial Group

Sumitomo Mitsui Financial Group, Inc., together with its subsidiaries, provides banking, leasing, securities, credit card, and consumer finance services in Japan, the Americas, Europe, the Middle East, Asia, and Oceania. It operates through Wholesale Business Unit, Retail Business Unit, Global Business Unit, and Global Markets Business Unit segments. The company was incorporated in 2002 and is headquartered in Tokyo, Japan.

About Western New England Bancorp

Western New England Bancorp, Inc. operates as the holding company for Westfield Bank that provides a range of commercial and retail banking products and services to individuals and businesses. The company accepts various deposit accounts, including interest-bearing and noninterest-bearing checking, commercial checking, business, nonprofit and municipal checking, savings, money market and sweep, individual retirement, and other savings accounts; time deposits; certificates of deposit; and interest on lawyer's trust accounts. It also offers residential real estate loans, including first mortgages, home equity loans, and home equity lines, and secured by one-to-four family residential properties; commercial and industrial loans, such as letters of credit, revolving lines of credit, working capital, equipment financing, and term loans; commercial mortgage loans; construction and land development loans; home equity loans comprising home equity revolving loans and lines of credit; and consumer loans, including automobile, spa and pool, collateral, and personal lines of credit. In addition, the company provides automated teller machine (ATM), telephone and online banking, remote deposit capture, cash management, overdraft and safe deposit facility, and night deposit services. The company was formerly known as Westfield Financial, Inc. and changed its name to Western New England Bancorp, Inc. in October 2016. The company was founded in 1853 and is headquartered in Westfield, Massachusetts.