Sumitomo Mitsui Financial Grp (NYSE: SMFG) and Allegiance Bancshares (NASDAQ:ABTX) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, dividends, valuation, earnings, profitability, risk and institutional ownership.
Volatility & Risk
Sumitomo Mitsui Financial Grp has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500. Comparatively, Allegiance Bancshares has a beta of 2.33, indicating that its stock price is 133% more volatile than the S&P 500.
Sumitomo Mitsui Financial Grp pays an annual dividend of $0.24 per share and has a dividend yield of 2.7%. Allegiance Bancshares does not pay a dividend. Sumitomo Mitsui Financial Grp pays out 24.0% of its earnings in the form of a dividend.
This is a summary of recent recommendations for Sumitomo Mitsui Financial Grp and Allegiance Bancshares, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sumitomo Mitsui Financial Grp||0||0||0||0||N/A|
Allegiance Bancshares has a consensus target price of $43.00, suggesting a potential upside of 7.37%. Given Allegiance Bancshares’ higher probable upside, analysts plainly believe Allegiance Bancshares is more favorable than Sumitomo Mitsui Financial Grp.
Earnings and Valuation
This table compares Sumitomo Mitsui Financial Grp and Allegiance Bancshares’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sumitomo Mitsui Financial Grp||$47.48 billion||1.30||$5.91 billion||$1.00||8.74|
|Allegiance Bancshares||$108.05 million||4.89||$22.85 million||$1.51||26.52|
Sumitomo Mitsui Financial Grp has higher revenue and earnings than Allegiance Bancshares. Sumitomo Mitsui Financial Grp is trading at a lower price-to-earnings ratio than Allegiance Bancshares, indicating that it is currently the more affordable of the two stocks.
This table compares Sumitomo Mitsui Financial Grp and Allegiance Bancshares’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sumitomo Mitsui Financial Grp||14.02%||7.09%||0.41%|
Institutional & Insider Ownership
2.4% of Sumitomo Mitsui Financial Grp shares are owned by institutional investors. Comparatively, 41.3% of Allegiance Bancshares shares are owned by institutional investors. 13.9% of Allegiance Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Allegiance Bancshares beats Sumitomo Mitsui Financial Grp on 11 of the 15 factors compared between the two stocks.
About Sumitomo Mitsui Financial Grp
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.
About Allegiance Bancshares
Allegiance Bancshares, Inc. is a bank holding company. Through its subsidiary, Allegiance Bank (the Bank), the Company provides a range of commercial banking services primarily to Houston metropolitan area-based small to medium-sized businesses, professionals and individual customers. In addition to banking during normal business hours, the Company offers extended drive-in hours, automated teller machines (ATMs) and banking by telephone, mail and Internet. The Company also provides debit card services, cash management services and wire transfer services, and offers night depository, direct deposits, cashier’s checks, letters of credit and mobile deposits. It also offers safe deposit boxes, automated teller machines, drive-in services and round the clock depository facilities. The Company maintains an Internet banking Website that allows customers to obtain account balances and transfer funds among accounts.
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