Sumitomo Mitsui Financial Grp (NYSE:SMFG) and Grupo Supervielle (NYSE:SUPV) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, earnings, profitability and risk.
Earnings and Valuation
This table compares Sumitomo Mitsui Financial Grp and Grupo Supervielle’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sumitomo Mitsui Financial Grp||$52.05 billion||1.07||$6.93 billion||$1.01||7.79|
|Grupo Supervielle||$1.40 billion||0.38||$147.19 million||$1.88||3.89|
Sumitomo Mitsui Financial Grp has higher revenue and earnings than Grupo Supervielle. Grupo Supervielle is trading at a lower price-to-earnings ratio than Sumitomo Mitsui Financial Grp, indicating that it is currently the more affordable of the two stocks.
Sumitomo Mitsui Financial Grp pays an annual dividend of $0.26 per share and has a dividend yield of 3.3%. Grupo Supervielle pays an annual dividend of $0.11 per share and has a dividend yield of 1.5%. Sumitomo Mitsui Financial Grp pays out 25.7% of its earnings in the form of a dividend. Grupo Supervielle pays out 5.9% 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.
This table compares Sumitomo Mitsui Financial Grp and Grupo Supervielle’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sumitomo Mitsui Financial Grp||12.31%||6.47%||0.39%|
Risk and Volatility
Sumitomo Mitsui Financial Grp has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500. Comparatively, Grupo Supervielle has a beta of -0.15, meaning that its share price is 115% less volatile than the S&P 500.
This is a breakdown of current recommendations for Sumitomo Mitsui Financial Grp and Grupo Supervielle, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sumitomo Mitsui Financial Grp||0||0||0||0||N/A|
Grupo Supervielle has a consensus price target of $8.50, suggesting a potential upside of 16.12%. Given Grupo Supervielle’s higher possible upside, analysts plainly believe Grupo Supervielle is more favorable than Sumitomo Mitsui Financial Grp.
Institutional and Insider Ownership
2.6% of Sumitomo Mitsui Financial Grp shares are owned by institutional investors. Comparatively, 45.7% of Grupo Supervielle shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
About Sumitomo Mitsui Financial Grp
Sumitomo Mitsui Financial Group, Inc., together with its subsidiaries, provides commercial banking, leasing, securities, consumer finance, and other services primarily in Japan. It operates through four segments: Wholesale Business, Retail Business, International Business, and Global Markets Business. The Wholesale Business segment provides financing, investment management, risk hedging and settlement services, as well as financial solutions for mergers and acquisition and other advisory services and leasing, primarily for large-and mid-sized corporate clients; and various leasing services, including equipment, and operating and leveraged leasing. The Retail Business segment offers wealth management, settlement services, consumer finance, and housing loans. The International Business segment provides loans, deposits, clearing services, trade finance, project finance, loan syndication, derivatives, and global cash management services; underwriting services; and leasing services related to the construction machinery, transportation equipment, industrial machinery, medical equipment, and aircraft leasing. As of March 31, 2018, this segment's network consisted of 18 branches, 22 sub-branches, and 4 representative offices. The Global Markets Business segment offers foreign exchange products, derivatives, bonds, stocks and other marketable financial products, and undertakes asset liability management operations. It also offers system development, data processing, management consulting, and economic research services; and investment advisory and investment trust management services. The company was founded in 1590 and is headquartered in Tokyo, Japan.
About Grupo Supervielle
Grupo Supervielle S.A., a financial services holding company, provides banking products and services in Argentina. The company operates through Retail Banking, Corporate Banking, Treasury, Consumer Finance, Insurance, and Asset Management & Other Services segments. It accepts deposit accounts; and offers personal loans, foreign trade finance, and loans to the middle and lower-middle-income sectors. The company also offers credit cards; insurance and mutual fund products; and factoring, leasing, cash management, asset management, and microcredit financing services. In addition, it distributes treasury products, such as debt securities; and provides non-financial products and service. The company serves individuals, small and medium-sized enterprises, and medium to large-sized companies. It operates 340 access points, including 180 bank branches, 19 banking payment and collection centers, 80 CCF sales points, and 61 consumer financing branches and other sale points, as well as 521 ATMs and 193 self-service terminals. The company was formerly known as Inversiones y Participaciones S.A. and changed its name to Grupo Supervielle S.A. in November 2008. Grupo Supervielle S.A. was founded in 1887 and is headquartered in Buenos Aires, Argentina.
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