SMFG vs. RY, MUFG, HDB, TD, IBN, SAN, BBVA, BMO, ING, and CM
Should you be buying Sumitomo Mitsui Financial Group stock or one of its competitors? The main competitors of Sumitomo Mitsui Financial Group include Royal Bank of Canada (RY), Mitsubishi UFJ Financial Group (MUFG), HDFC Bank (HDB), Toronto-Dominion Bank (TD), ICICI Bank (IBN), Banco Santander (SAN), Banco Bilbao Vizcaya Argentaria (BBVA), Bank of Montreal (BMO), ING Groep (ING), and Canadian Imperial Bank of Commerce (CM). These companies are all part of the "commercial banks, not elsewhere classified" industry.
Sumitomo Mitsui Financial Group (NYSE:SMFG) and Royal Bank of Canada (NYSE:RY) are both large-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, risk, community ranking, media sentiment, valuation, institutional ownership, profitability, analyst recommendations and dividends.
Sumitomo Mitsui Financial Group pays an annual dividend of $0.14 per share and has a dividend yield of 1.1%. Royal Bank of Canada pays an annual dividend of $4.08 per share and has a dividend yield of 3.7%. Sumitomo Mitsui Financial Group pays out 14.0% of its earnings in the form of a dividend. Royal Bank of Canada pays out 50.6% 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.
Royal Bank of Canada received 458 more outperform votes than Sumitomo Mitsui Financial Group when rated by MarketBeat users. However, 66.13% of users gave Sumitomo Mitsui Financial Group an outperform vote while only 55.72% of users gave Royal Bank of Canada an outperform vote.
In the previous week, Royal Bank of Canada had 13 more articles in the media than Sumitomo Mitsui Financial Group. MarketBeat recorded 18 mentions for Royal Bank of Canada and 5 mentions for Sumitomo Mitsui Financial Group. Royal Bank of Canada's average media sentiment score of 1.23 beat Sumitomo Mitsui Financial Group's score of 0.88 indicating that Royal Bank of Canada is being referred to more favorably in the news media.
Royal Bank of Canada has a net margin of 12.12% compared to Sumitomo Mitsui Financial Group's net margin of 10.32%. Royal Bank of Canada's return on equity of 14.98% beat Sumitomo Mitsui Financial Group's return on equity.
Royal Bank of Canada has lower revenue, but higher earnings than Sumitomo Mitsui Financial Group. Sumitomo Mitsui Financial Group is trading at a lower price-to-earnings ratio than Royal Bank of Canada, indicating that it is currently the more affordable of the two stocks.
3.8% of Sumitomo Mitsui Financial Group shares are owned by institutional investors. Comparatively, 45.3% of Royal Bank of Canada shares are owned by institutional investors. 0.1% of Sumitomo Mitsui Financial Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Royal Bank of Canada has a consensus target price of $137.67, indicating a potential upside of 25.99%. Given Royal Bank of Canada's stronger consensus rating and higher possible upside, analysts clearly believe Royal Bank of Canada is more favorable than Sumitomo Mitsui Financial Group.
Sumitomo Mitsui Financial Group has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500. Comparatively, Royal Bank of Canada has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500.
Summary
Royal Bank of Canada beats Sumitomo Mitsui Financial Group on 17 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding SMFG and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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