Analyzing Sumitomo Mitsui Trust (SUTNY) and Its Competitors

Sumitomo Mitsui Trust (OTCMKTS:SUTNY) is one of 920 publicly-traded companies in the “Banks” industry, but how does it weigh in compared to its peers? We will compare Sumitomo Mitsui Trust to similar companies based on the strength of its institutional ownership, profitability, risk, analyst recommendations, dividends, valuation and earnings.

Analyst Ratings

This is a breakdown of current ratings and price targets for Sumitomo Mitsui Trust and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sumitomo Mitsui Trust	0	1	0	0	2.00
Sumitomo Mitsui Trust Competitors	7457	30157	27705	1451	2.35

As a group, “Banks” companies have a potential upside of 17.32%. Given Sumitomo Mitsui Trust’s peers stronger consensus rating and higher probable upside, analysts clearly believe Sumitomo Mitsui Trust has less favorable growth aspects than its peers.

Dividends

Sumitomo Mitsui Trust pays an annual dividend of $0.10 per share and has a dividend yield of 1.9%. Sumitomo Mitsui Trust pays out 23.3% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.5% and pay out 28.9% of their earnings in the form of a dividend.

Valuation & Earnings

This table compares Sumitomo Mitsui Trust and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Sumitomo Mitsui Trust	$19.82 billion	$1.99 billion	12.21
Sumitomo Mitsui Trust Competitors	$213.23 billion	$2.41 billion	18.87

Sumitomo Mitsui Trust’s peers have higher revenue and earnings than Sumitomo Mitsui Trust. Sumitomo Mitsui Trust is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Sumitomo Mitsui Trust and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sumitomo Mitsui Trust	11.81%	10.45%	0.45%
Sumitomo Mitsui Trust Competitors	15.38%	9.45%	0.93%

Institutional & Insider Ownership

47.9% of shares of all “Banks” companies are held by institutional investors. 9.8% of shares of all “Banks” companies are held 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.

Summary

Sumitomo Mitsui Trust peers beat Sumitomo Mitsui Trust on 12 of the 14 factors compared.

About Sumitomo Mitsui Trust

Sumitomo Mitsui Trust Holdings, Inc. operates as a trust bank in Japan and internationally. It offers supervising services for management strategies, and financial and human resource management; and general affairs, business process, corporate administration, operational process, risk, and compliance management services; and internal auditing services. The company also provides real estate brokerage, investment management, and investment advisory services for individual and corporate clients; high-level professional consulting services; loan guarantees and payment collection agency services; issuing credit cards; internet banking; securities administration and credit card services; and advanced financial instruments, such as leasing and credit services, and credit card financing services, as well as mortgage loans and managing private equity funds and related advisory services. In addition, it offers back-office services, such as business management and system administration for stock transfer agencies; clerical works, including managing shareholders registry and special accounts; custody and fund administration services; stock transfer agency services; asset management services; and retail total solution, marketing, and fiduciary services, as well as system development and maintenance. Further, the company provides facilities management, clerical work outsourcing, and leasing of buildings; consulting services related to digital transformation, data-analytics, and a range of research and studies; and evaluation of mutual funds, discretionary investment funds, and insurance products, as well as engages in trustee and temporary staffing businesses. The company was formerly known as Chuo Mitsui Trust Holdings, Inc. and changed its name to Sumitomo Mitsui Trust Holdings, Inc. in 2011. Sumitomo Mitsui Trust Holdings, Inc. was founded in 1924 and is headquartered in Tokyo, Japan.