Contrasting HANG SENG Bk Lt/S (HSNGY) & Societe Generale (SCGLY)

HANG SENG Bk Lt/S (OTCMKTS:HSNGY) and Societe Generale (OTCMKTS:SCGLY) are both large-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, dividends, analyst recommendations, valuation and risk.

Insider and Institutional Ownership

0.0% of HANG SENG Bk Lt/S shares are held by institutional investors. Comparatively, 0.7% of Societe Generale shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares HANG SENG Bk Lt/S and Societe Generale’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
HANG SENG Bk Lt/S $10.17 billion 4.33 $2.57 billion $1.32 17.47
Societe Generale $27.06 billion 1.03 $3.17 billion $1.14 6.07

Societe Generale has higher revenue and earnings than HANG SENG Bk Lt/S. Societe Generale is trading at a lower price-to-earnings ratio than HANG SENG Bk Lt/S, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares HANG SENG Bk Lt/S and Societe Generale’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HANG SENG Bk Lt/S N/A N/A N/A
Societe Generale 12.93% 6.91% 0.34%

Analyst Ratings

This is a summary of current recommendations and price targets for HANG SENG Bk Lt/S and Societe Generale, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HANG SENG Bk Lt/S 0 0 0 0 N/A
Societe Generale 2 3 3 0 2.13

Societe Generale has a consensus target price of $44.50, indicating a potential upside of 542.60%. Given Societe Generale’s higher possible upside, analysts clearly believe Societe Generale is more favorable than HANG SENG Bk Lt/S.

Dividends

HANG SENG Bk Lt/S pays an annual dividend of $0.58 per share and has a dividend yield of 2.5%. Societe Generale pays an annual dividend of $0.42 per share and has a dividend yield of 6.1%. HANG SENG Bk Lt/S pays out 43.9% of its earnings in the form of a dividend. Societe Generale pays out 36.8% 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. Societe Generale is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk & Volatility

HANG SENG Bk Lt/S has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500. Comparatively, Societe Generale has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500.

Summary

Societe Generale beats HANG SENG Bk Lt/S on 11 of the 13 factors compared between the two stocks.

HANG SENG Bk Lt/S Company Profile

Hang Seng Bank Limited, together with its subsidiaries, provides various banking and related financial services to individual, corporate, commercial, small and medium-sized enterprise, and institutional customers in Hong Kong, Mainland China, and internationally. It operates through four segments: Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets, and Other. The company offers personal banking services, including current and savings accounts, mortgages and personal loans, credit cards, and insurance and wealth management services, as well as consumer lending services. It also provides corporate lending, trade and receivable finance, payments and cash management, treasury and foreign exchange, general insurance, key-person insurance, investment, and corporate wealth management services, as well as general banking, interest rate, money market, structured, derivative products, etc. In addition, the company offers trustee, nominee, retirement benefit and life assurance, fund management, stock broking, and property management services, as well as engages in the compilation and dissemination of the Hang Seng share index. As of March 12, 2018, it operated 270 service outlets in Hong Kong; branches in Macau and Singapore; and a representative office in Taipei. Hang Seng Bank Limited, through its subsidiary, Hang Seng Bank (China) Limited, operates a mainland China network with outlets in the Pearl River delta, the Yangtze River delta, the Bohai Rim region, and Midwest China. The company was founded in 1933 and is headquartered in Central, Hong Kong. Hang Seng Bank Limited is a subsidiary of The Hongkong and Shanghai Banking Corporation Limited.

Societe Generale Company Profile

Société Générale Société anonyme provides financial services in Europe and internationally. It operates through three segments: French Retail Banking, International Retail Banking & Financial Services, and Global Banking and Investor Solutions. The company offers retail banking services to individual customers, professionals, and corporate and non-profit clients under the Societe Generale, Crédit du Nord, and Boursorama brands; and international retail banking and consumer credit services to individual and corporate customers in Europe, Russia, the Mediterranean Basin, and Sub-Saharan Africa. It also provides life, retirement savings scheme, personal protection, group retirement, dependence, annuity, auto and home, personal accident, school, individual personal protection, non-life, and other insurance products; vehicle leasing and fleet management services; and vendor and equipment finance services. In addition, the company assists corporates, financial institutions, public sector institutions, and family offices in terms of investments, strategic advisory, capital raising, and capital structure optimization; and offers structured finance, and investment and risk management solutions. Further, it provides access to market through solutions equities, fixed income and currencies, commodities, and alternative investments; private banking services, including asset allocation, portfolio management, funds, markets, and wealth management solutions to high net worth individuals; and asset management solutions. Additionally, the company offers securities services, such as clearing, custody and trustee, liquidity management, fund administration and asset servicing, fund distribution, and global issuer services. Société Générale Société anonyme was founded in 1864 and is based in Paris, France.

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