SR Bancorp (NASDAQ:SRBK) & Sumitomo Mitsui Trust (OTCMKTS:SUTNY) Head-To-Head Survey

SR Bancorp (NASDAQ:SRBK) and Sumitomo Mitsui Trust (OTCMKTS:SUTNY) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, earnings, analyst recommendations and valuation.

Dividends

SR Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.3%. Sumitomo Mitsui Trust pays an annual dividend of $0.10 per share and has a dividend yield of 1.9%. SR Bancorp pays out 47.1% of its earnings in the form of a dividend. Sumitomo Mitsui Trust pays out 23.3% 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. Sumitomo Mitsui Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares SR Bancorp and Sumitomo Mitsui Trust”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SR Bancorp	$51.80 million	2.89	$3.35 million	$0.51	37.06
Sumitomo Mitsui Trust	$19.82 billion	1.46	$1.99 billion	$0.43	12.16

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

Institutional & Insider Ownership

24.7% of SR Bancorp shares are owned by institutional investors. 9.9% of SR Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares SR Bancorp and Sumitomo Mitsui Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SR Bancorp	6.95%	1.82%	0.29%
Sumitomo Mitsui Trust	11.81%	10.45%	0.45%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for SR Bancorp and Sumitomo Mitsui Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SR Bancorp	0	2	0	0	2.00
Sumitomo Mitsui Trust	0	1	0	0	2.00

SR Bancorp presently has a consensus price target of $19.00, suggesting a potential upside of 0.53%. Given SR Bancorp’s higher possible upside, analysts clearly believe SR Bancorp is more favorable than Sumitomo Mitsui Trust.

Summary

Sumitomo Mitsui Trust beats SR Bancorp on 7 of the 13 factors compared between the two stocks.

About SR Bancorp

SR Bancorp, Inc. is the bank holding company for Somerset Hills Bank, a community bank headquartered in Bernardsville, New Jersey. The company provides banking and financial services to individuals, families, businesses and nonprofit organizations through its local banking operations. Somerset Hills Bank offers deposit products such as checking, savings, money market and certificate of deposit accounts. Its lending activities include residential and commercial real estate loans, commercial and industrial financing, home equity loans and consumer loans.

About Sumitomo Mitsui Trust

Sumitomo Mitsui Trust Group, Inc. is a Japan-based financial holding company whose businesses include banking, asset management, investor services and real estate. Its offerings include trust and banking services, investment products, pension and custody services, securities administration, and real estate brokerage and consulting. The group serves individuals, businesses, institutional investors and public-sector clients, primarily in Japan. It also maintains international operations to support cross-border banking, asset management and investor services.