Analyzing Svenska Handelsbanken Ab Publ (OTCMKTS:SVNLY) & Sumitomo Mitsui Financial Group (NYSE:SMFG)

Sumitomo Mitsui Financial Group (NYSE:SMFG) and Svenska Handelsbanken Ab Publ (OTCMKTS:SVNLY) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, dividends, analyst recommendations, profitability, risk, institutional ownership and valuation.

Earnings & Valuation

This table compares Sumitomo Mitsui Financial Group and Svenska Handelsbanken Ab Publ”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sumitomo Mitsui Financial Group	$5,180.61 billion	0.02	$3.36 billion	$1.18	15.56
Svenska Handelsbanken Ab Publ	$17.44 billion	N/A	$2.60 billion	$0.61	11.31

Sumitomo Mitsui Financial Group has higher revenue and earnings than Svenska Handelsbanken Ab Publ. Svenska Handelsbanken Ab Publ is trading at a lower price-to-earnings ratio than Sumitomo Mitsui Financial Group, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Sumitomo Mitsui Financial Group has a beta of 0.36, meaning that its stock price is 64% less volatile than the S&P 500. Comparatively, Svenska Handelsbanken Ab Publ has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500.

Dividends

Sumitomo Mitsui Financial Group pays an annual dividend of $0.39 per share and has a dividend yield of 2.1%. Svenska Handelsbanken Ab Publ pays an annual dividend of $0.60 per share and has a dividend yield of 8.7%. Sumitomo Mitsui Financial Group pays out 33.1% of its earnings in the form of a dividend. Svenska Handelsbanken Ab Publ pays out 98.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Sumitomo Mitsui Financial Group and Svenska Handelsbanken Ab Publ, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sumitomo Mitsui Financial Group	0	2	0	1	2.67
Svenska Handelsbanken Ab Publ	2	5	0	0	1.71

Profitability

This table compares Sumitomo Mitsui Financial Group and Svenska Handelsbanken Ab Publ’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sumitomo Mitsui Financial Group	11.78%	7.88%	0.40%
Svenska Handelsbanken Ab Publ	15.97%	12.80%	0.68%

Insider & Institutional Ownership

3.8% of Sumitomo Mitsui Financial Group shares are owned by institutional investors. 0.1% of Sumitomo Mitsui Financial Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Sumitomo Mitsui Financial Group beats Svenska Handelsbanken Ab Publ on 9 of the 14 factors compared between the two stocks.

About Sumitomo Mitsui Financial Group

Sumitomo Mitsui Financial Group, Inc., together with its subsidiaries, provides banking, leasing, securities, credit card, and consumer finance services in Japan, the Americas, Europe, the Middle East, Asia, and Oceania. It operates through Wholesale Business Unit, Retail Business Unit, Global Business Unit, and Global Markets Business Unit segments. The company was incorporated in 2002 and is headquartered in Tokyo, Japan.

About Svenska Handelsbanken Ab Publ

Svenska Handelsbanken AB (publ) provides various banking products and services for private and corporate customers primarily in Sweden, the United Kingdom, Norway, the Netherlands, the United States, Luxembourg, Finland, and Poland. The company offers savings, transactions, business, currency, and investment accounts, as well as accounts for cash pool, and forestry and agriculture; mortgage and committed loans, and private loans; mutual funds; pension products; credit and debit cards; and payment and reconciliation services, as well as foreign exchange rate services. It also provides financing for investments, such as equipment, cars, computers, and other inventories, as well as vehicle and real estate financing services; green loans and advisor services; investment and other financing services; medical care, and group and health insurance products; forestry and farming banking products; and online and mobile banking services, as well as various banking services for children and young people. In addition, the company offers financial services, that includes asset management, transactional banking, corporate finance, financing, markets, trade finance, market information and research services to large corporations; cash management solutions; and various corporate banking services to small and medium-sized companies and large corporates, as well as private banking services. Svenska Handelsbanken AB (publ) was incorporated in 1871 and is headquartered in Stockholm, Sweden.