Raiffeisen Bank International (OTCMKTS:RAIFY – Get Free Report) and Sumitomo Mitsui Financial Group (NYSE:SMFG – Get Free Report) are both large-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitability and dividends.
Profitability
This table compares Raiffeisen Bank International and Sumitomo Mitsui Financial Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Raiffeisen Bank International | 19.31% | 10.94% | 1.16% |
| Sumitomo Mitsui Financial Group | 16.24% | 10.65% | 0.56% |
Risk and Volatility
Raiffeisen Bank International has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500. Comparatively, Sumitomo Mitsui Financial Group has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500.
Valuation & Earnings
This table compares Raiffeisen Bank International and Sumitomo Mitsui Financial Group”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Raiffeisen Bank International | $14.76 billion | 1.41 | $1.55 billion | $2.10 | 7.54 |
| Sumitomo Mitsui Financial Group | $6,141.12 billion | 0.02 | $7.84 billion | $1.44 | 16.59 |
Sumitomo Mitsui Financial Group has higher revenue and earnings than Raiffeisen Bank International. Raiffeisen Bank International is trading at a lower price-to-earnings ratio than Sumitomo Mitsui Financial Group, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent recommendations for Raiffeisen Bank International and Sumitomo Mitsui Financial Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Raiffeisen Bank International | 0 | 0 | 0 | 1 | 4.00 |
| Sumitomo Mitsui Financial Group | 1 | 0 | 1 | 0 | 2.00 |
Institutional and Insider Ownership
3.8% of Sumitomo Mitsui Financial Group shares are owned by institutional investors. 0.1% of Sumitomo Mitsui Financial Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Dividends
Raiffeisen Bank International pays an annual dividend of $0.27 per share and has a dividend yield of 1.7%. Sumitomo Mitsui Financial Group pays an annual dividend of $0.46 per share and has a dividend yield of 1.9%. Raiffeisen Bank International pays out 12.9% of its earnings in the form of a dividend. Sumitomo Mitsui Financial Group pays out 31.9% 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.
Summary
Raiffeisen Bank International beats Sumitomo Mitsui Financial Group on 9 of the 16 factors compared between the two stocks.
About Raiffeisen Bank International
Raiffeisen Bank International AG, together with its subsidiaries, offers banking services to corporate, private customers, and institutional customers. The company offers cash management, cross border accounts, electronic banking, payments solutions, sustainable and subsidized financing, leveraged and acquisition financing, project and structured financing, real estate financing, leasing, factoring, trade and export financing, investment banking, investing, hedging, and investor services to its institutional clients and corporate customers in agri food and beverage, automotive, construction and building materials, food and beverage, healthcare and pharmaceuticals, oil and gas, packaging, real estate, retail, technology, telecom, and utilities industries. It also provides retail and private banking services, including deposits, loans, wealth management, and advisory services to retail customers and small and medium-sized enterprises. In addition, the company offers clearing, reporting, settlement, guarantees, letters of credit, fund administration, acceptances, brokerage, asset management, and custody services; and investment banking services, including asset based finance, fund finance and alternatives investments, loan syndication, mergers and acquisitions advisory, and debt and equity capital markets services. It operates through a network of business outlets in Central, Southeastern, and Eastern Europe, as well as Austria, Czech Republic, Hungary, Poland, and Slovakia. Raiffeisen Bank International AG was founded in 1886 and is based in Vienna, Austria.
About Sumitomo Mitsui Financial Group
Sumitomo Mitsui Financial Group, Inc., together with its subsidiaries, provides banking, leasing, securities, credit card, and consumer finance services in Japan, the Americas, Europe, the Middle East, Asia, and Oceania. It operates through Wholesale Business Unit, Retail Business Unit, Global Business Unit, and Global Markets Business Unit segments. The company was incorporated in 2002 and is headquartered in Tokyo, Japan.
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