Republic Bancorp (NASDAQ: RBCAA) and Sumitomo Mitsui Financial Group (NYSE:SMFG) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.
This table compares Republic Bancorp and Sumitomo Mitsui Financial Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sumitomo Mitsui Financial Group||14.43%||6.95%||0.40%|
Republic Bancorp pays an annual dividend of $0.88 per share and has a dividend yield of 2.5%. Sumitomo Mitsui Financial Group pays an annual dividend of $0.23 per share and has a dividend yield of 3.0%. Republic Bancorp pays out 36.8% of its earnings in the form of a dividend. Sumitomo Mitsui Financial Group pays out 22.5% 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. Sumitomo Mitsui Financial Group is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional & Insider Ownership
26.0% of Republic Bancorp shares are held by institutional investors. Comparatively, 2.2% of Sumitomo Mitsui Financial Group shares are held by institutional investors. 52.3% of Republic Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Risk & Volatility
Republic Bancorp has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500. Comparatively, Sumitomo Mitsui Financial Group has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500.
Earnings and Valuation
This table compares Republic Bancorp and Sumitomo Mitsui Financial Group’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Republic Bancorp||$215.35 million||3.34||$49.85 million||$2.39||14.45|
|Sumitomo Mitsui Financial Group||$27.80 billion||1.91||$7.19 billion||$1.02||7.40|
Sumitomo Mitsui Financial Group has higher revenue and earnings than Republic Bancorp. Sumitomo Mitsui Financial Group is trading at a lower price-to-earnings ratio than Republic Bancorp, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations and price targets for Republic Bancorp and Sumitomo Mitsui Financial Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sumitomo Mitsui Financial Group||0||0||1||0||3.00|
Republic Bancorp presently has a consensus price target of $39.00, indicating a potential upside of 12.95%. Given Republic Bancorp’s higher possible upside, equities analysts plainly believe Republic Bancorp is more favorable than Sumitomo Mitsui Financial Group.
Republic Bancorp beats Sumitomo Mitsui Financial Group on 9 of the 14 factors compared between the two stocks.
About Republic Bancorp
Republic Bancorp, Inc. is a financial holding company of Republic Bank & Trust Company (the Bank) and Republic Insurance Services, Inc. (the Captive). The Bank is a Kentucky-based, state chartered non-member financial institution. The Captive is an insurance subsidiary of the Company. The Company operates through four segments: Traditional Banking, which provides traditional banking products to customers; Warehouse Lending (Warehouse), which provides short-term, revolving credit facilities to mortgage bankers across the United States through mortgage warehouse lines of credit; Mortgage Banking, which originates, sells and services long-term, single family, first lien residential real estate loans, and Republic Processing Group (RPG), which facilitates the receipt and payment of federal and state tax refund products. Republic Bancorp Capital Trust is a subsidiary of Republic Bancorp, Inc.
About Sumitomo Mitsui Financial Group
Sumitomo Mitsui Financial Group, Inc. is a holding company for Sumitomo Mitsui Banking Corporation (the Bank) and its subsidiaries. The Company operates through four segments: Commercial Banking, Leasing, Securities and Consumer Finance. The Company and its subsidiaries offer a range of financial services, including commercial banking, leasing, securities, consumer finance and other services. The Company offers commercial banking services to a range of customers, including corporations, mid-sized companies, small-sized companies, individuals, governments and governmental entities mainly through the Bank. The Bank has equity interest in Sumitomo Mitsui Finance and Leasing Company, Limited, which provides a range of leasing services, including equipment lease, operating lease, leveraged lease and aircraft operating lease. The Bank’s subsidiary, SMBC Nikko Securities Inc., offers a range of financial products, and investment consultation and administrative services.
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