Critical Review: Sumitomo Mitsui Financial Group (NYSE:SMFG) & Its Rivals

Sumitomo Mitsui Financial Group (NYSE: SMFG) is one of 313 public companies in the “Banks” industry, but how does it contrast to its rivals? We will compare Sumitomo Mitsui Financial Group to related businesses based on the strength of its valuation, dividends, risk, analyst recommendations, institutional ownership, earnings and profitability.

Analyst Recommendations

This is a summary of recent ratings and target prices for Sumitomo Mitsui Financial Group and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sumitomo Mitsui Financial Group 0 0 1 0 3.00
Sumitomo Mitsui Financial Group Competitors 2123 8353 8385 329 2.36

As a group, “Banks” companies have a potential downside of 1.62%. Given Sumitomo Mitsui Financial Group’s rivals higher possible upside, analysts plainly believe Sumitomo Mitsui Financial Group has less favorable growth aspects than its rivals.

Institutional and Insider Ownership

2.3% of Sumitomo Mitsui Financial Group shares are owned by institutional investors. Comparatively, 51.8% of shares of all “Banks” companies are owned by institutional investors. 10.4% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Sumitomo Mitsui Financial Group and its rivals revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Sumitomo Mitsui Financial Group $47.48 billion $5.91 billion 7.64
Sumitomo Mitsui Financial Group Competitors $5.47 billion $818.14 million 360.68

Sumitomo Mitsui Financial Group has higher revenue and earnings than its rivals. Sumitomo Mitsui Financial Group is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Volatility & Risk

Sumitomo Mitsui Financial Group has a beta of 1.35, indicating that its share price is 35% more volatile than the S&P 500. Comparatively, Sumitomo Mitsui Financial Group’s rivals have a beta of 0.81, indicating that their average share price is 19% less volatile than the S&P 500.

Dividends

Sumitomo Mitsui Financial Group pays an annual dividend of $0.11 per share and has a dividend yield of 1.4%. Sumitomo Mitsui Financial Group pays out 10.8% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 2.0% and pay out 35.6% of their earnings in the form of a dividend.

Profitability

This table compares Sumitomo Mitsui Financial Group and its rivals’ 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%
Sumitomo Mitsui Financial Group Competitors 18.57% 8.60% 0.93%

Summary

Sumitomo Mitsui Financial Group rivals beat Sumitomo Mitsui Financial Group on 9 of the 15 factors compared.

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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