Contrasting DBS Group (OTCMKTS:DBSDY) and Sumitomo Mitsui Financial Group (NYSE:SMFG)

Sumitomo Mitsui Financial Group (NYSE:SMFG) and DBS Group (OTCMKTS:DBSDY) are both large-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, risk, valuation, profitability, dividends, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

3.8% of Sumitomo Mitsui Financial Group shares are owned by institutional investors. Comparatively, 0.2% of DBS 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 endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Sumitomo Mitsui Financial Group and DBS Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sumitomo Mitsui Financial Group	0	1	1	0	2.50
DBS Group	0	1	0	1	3.00

Profitability

This table compares Sumitomo Mitsui Financial Group and DBS Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sumitomo Mitsui Financial Group	15.68%	10.19%	0.53%
DBS Group	N/A	N/A	N/A

Earnings and Valuation

This table compares Sumitomo Mitsui Financial Group and DBS Group”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 Group	$71.68 billion	2.22	$7.84 billion	$1.34	18.65
DBS Group	$28.07 billion	5.66	$8.37 billion	N/A	N/A

DBS Group has lower revenue, but higher earnings than Sumitomo Mitsui Financial Group.

Risk and Volatility

Sumitomo Mitsui Financial Group has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500. Comparatively, DBS Group has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500.

Dividends

Sumitomo Mitsui Financial Group pays an annual dividend of $0.47 per share and has a dividend yield of 1.9%. DBS Group pays an annual dividend of $8.03 per share and has a dividend yield of 3.6%. Sumitomo Mitsui Financial Group pays out 35.1% of its earnings in the form of a dividend.

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 DBS Group

DBS Group Holdings Ltd provides commercial banking and financial services in Singapore, Hong Kong, rest of Greater China, South and Southeast Asia, and internationally. The company’s Consumer Banking/Wealth Management segment offers banking and related financial services, including current and savings accounts, fixed deposits, loans and home finance, cards, payments, investment, and insurance products for individual customers. Its Institutional Banking segment provides financial services and products for bank and non-bank financial institutions, government-linked companies, large corporates, and small and medium sized businesses. Its products and services comprise short-term working capital financing and specialized lending; cash management, trade finance, and securities and fiduciary services; treasury and markets products; and corporate finance and advisory banking, as well as capital markets solutions. The company’s Treasury Markets segment is involved in the structuring, market-making, and trading in a range of treasury products. DBS Group Holdings Ltd was founded in 1968 and is headquartered in Singapore.