Sumitomo Mitsui Financial Group (NYSE: SMFG) is one of 342 publicly-traded companies in the “Banks” industry, but how does it weigh in compared to its peers? We will compare Sumitomo Mitsui Financial Group to related businesses based on the strength of its risk, valuation, analyst recommendations, earnings, dividends, profitability and institutional ownership.

Insider and Institutional Ownership

2.3% of Sumitomo Mitsui Financial Group shares are owned by institutional investors. Comparatively, 52.4% of shares of all “Banks” companies are owned by institutional investors. 10.5% of shares of all “Banks” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

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 1.9% and pay out 34.1% of their earnings in the form of a dividend.

Profitability

This table compares Sumitomo Mitsui Financial Group and its peers’ 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 18.89% 8.83% 0.94%

Valuation and Earnings

This table compares Sumitomo Mitsui Financial Group and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Sumitomo Mitsui Financial Group $47.48 billion $5.91 billion 7.93
Sumitomo Mitsui Financial Group Competitors $5.45 billion $813.35 million 37.79

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

Analyst Recommendations

This is a breakdown of recent ratings for Sumitomo Mitsui Financial Group and its peers, as reported by MarketBeat.

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 2101 8305 8392 324 2.36

As a group, “Banks” companies have a potential downside of 7.40%. Given Sumitomo Mitsui Financial Group’s peers higher possible upside, analysts plainly believe Sumitomo Mitsui Financial Group has less favorable growth aspects than its peers.

Risk & Volatility

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 peers have a beta of 0.82, indicating that their average share price is 18% less volatile than the S&P 500.

Summary

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

Sumitomo Mitsui Financial Group Company Profile

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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