Sumitomo Mitsui Financial Grp (NYSE: SMFG) and Peoples Utah Bancorp (NASDAQ:PUB) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, earnings, analyst recommendations, risk and profitability.
Sumitomo Mitsui Financial Grp pays an annual dividend of $0.24 per share and has a dividend yield of 2.8%. Peoples Utah Bancorp pays an annual dividend of $0.36 per share and has a dividend yield of 1.1%. Sumitomo Mitsui Financial Grp pays out 23.1% of its earnings in the form of a dividend. Peoples Utah Bancorp pays out 33.3% 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 Financial Grp is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation & Earnings
This table compares Sumitomo Mitsui Financial Grp and Peoples Utah Bancorp’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sumitomo Mitsui Financial Grp||$47.48 billion||1.29||$5.91 billion||$1.04||8.36|
|Peoples Utah Bancorp||$100.54 million||5.99||$19.85 million||$1.08||30.14|
Sumitomo Mitsui Financial Grp has higher revenue and earnings than Peoples Utah Bancorp. Sumitomo Mitsui Financial Grp is trading at a lower price-to-earnings ratio than Peoples Utah Bancorp, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and target prices for Sumitomo Mitsui Financial Grp and Peoples Utah Bancorp, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sumitomo Mitsui Financial Grp||0||0||0||0||N/A|
|Peoples Utah Bancorp||0||0||1||0||3.00|
Peoples Utah Bancorp has a consensus target price of $35.00, suggesting a potential upside of 7.53%. Given Peoples Utah Bancorp’s higher probable upside, analysts plainly believe Peoples Utah Bancorp is more favorable than Sumitomo Mitsui Financial Grp.
Institutional & Insider Ownership
2.5% of Sumitomo Mitsui Financial Grp shares are held by institutional investors. Comparatively, 34.9% of Peoples Utah Bancorp shares are held by institutional investors. 25.2% of Peoples Utah Bancorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Risk & Volatility
Sumitomo Mitsui Financial Grp has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500. Comparatively, Peoples Utah Bancorp has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500.
This table compares Sumitomo Mitsui Financial Grp and Peoples Utah Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sumitomo Mitsui Financial Grp||14.38%||7.28%||0.43%|
|Peoples Utah Bancorp||19.74%||11.67%||1.61%|
Peoples Utah Bancorp beats Sumitomo Mitsui Financial Grp on 10 of the 15 factors compared between the two stocks.
Sumitomo Mitsui Financial Grp Company Profile
Sumitomo Mitsui Financial Group, Inc. is a holding company for Sumitomo Mitsui Banking Corporation (the Bank) and its subsidiaries. The Company operates through four segments: Commercial Banking, Leasing, Securities and Consumer Finance. The Company and its subsidiaries offer a range of financial services, including commercial banking, leasing, securities, consumer finance and other services. The Company offers commercial banking services to a range of customers, including corporations, mid-sized companies, small-sized companies, individuals, governments and governmental entities mainly through the Bank. The Bank has equity interest in Sumitomo Mitsui Finance and Leasing Company, Limited, which provides a range of leasing services, including equipment lease, operating lease, leveraged lease and aircraft operating lease. The Bank’s subsidiary, SMBC Nikko Securities Inc., offers a range of financial products, and investment consultation and administrative services.
Peoples Utah Bancorp Company Profile
People’s Utah Bancorp is a bank holding company. As of December 31, 2016, the Company had 18 retail banking locations, two residential mortgage offices and other support facilities operated through its banking subsidiary, People’s Intermountain Bank (PIB or the Bank). The Company provides full-service retail banking in the state of Utah, including a range of banking and related services to locally owned businesses, professional firms, real-estate developers, residential home builders, high net-worth individuals, investors and other customers. It also provides a range of banking services and products to individuals. The Bank operates two divisions: Bank of American Fork (BAF), Lewiston State Bank (LSB) and GrowthFunding Equipment Finance. The Company provides banking services throughout its market area to real estate developers, contractors and small-to medium-sized businesses.
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