Shore Bancshares (NASDAQ:SHBI) and Shinhan Financial Group (NYSE:SHG) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, valuation, institutional ownership and risk.
Insider and Institutional Ownership
67.9% of Shore Bancshares shares are held by institutional investors. Comparatively, 2.5% of Shinhan Financial Group shares are held by institutional investors. 2.1% of Shore Bancshares shares are held by insiders. Comparatively, 1.0% of Shinhan Financial Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Shore Bancshares pays an annual dividend of $0.32 per share and has a dividend yield of 1.8%. Shinhan Financial Group pays an annual dividend of $1.03 per share and has a dividend yield of 2.5%. Shinhan Financial Group pays out 9.0% of its earnings in the form of a dividend. Shore Bancshares has increased its dividend for 2 consecutive years and Shinhan Financial Group has increased its dividend for 2 consecutive years.
Risk & Volatility
Shore Bancshares has a beta of 0.19, meaning that its share price is 81% less volatile than the S&P 500. Comparatively, Shinhan Financial Group has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500.
This table compares Shore Bancshares and Shinhan Financial Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Shinhan Financial Group||17.31%||8.45%||0.65%|
Earnings & Valuation
This table compares Shore Bancshares and Shinhan Financial Group’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Shore Bancshares||$65.55 million||3.54||$11.26 million||N/A||N/A|
|Shinhan Financial Group||$15.37 billion||1.25||$2.58 billion||$11.46||3.55|
Shinhan Financial Group has higher revenue and earnings than Shore Bancshares.
This is a breakdown of recent ratings and price targets for Shore Bancshares and Shinhan Financial Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Shinhan Financial Group||0||0||1||0||3.00|
Shore Bancshares presently has a consensus price target of $23.00, suggesting a potential upside of 26.37%. Given Shore Bancshares’ higher probable upside, research analysts plainly believe Shore Bancshares is more favorable than Shinhan Financial Group.
Shore Bancshares beats Shinhan Financial Group on 10 of the 14 factors compared between the two stocks.
About Shore Bancshares
Shore Bancshares, Inc. operates as a bank holding company for the Shore United Bank that provides various commercial banking products and services to individuals, businesses, and other organizations. The company operates through two segments, Community Banking, and Insurance Products and Services. It offers various deposit products, including checking, savings, and money market accounts; and regular and IRA certificates of deposit, as well as CDARS programs and cash management services. The company also provides commercial loans, such as secured and unsecured loans, working capital loans, lines of credit, term loans, accounts receivable financing, real estate acquisition and development loans, construction loans, and letters of credit, as well as commercial mortgages, and equipment and operating loans; and loans to consumers comprising mortgage, home equity, automobile, marine, installment, and other secured and unsecured personal lines of credit. In addition, it offers safe deposit boxes; debit and credit cards; direct deposit of payroll; merchant credit card clearing services; telephone, mobile, and Internet banking services; and automatic teller machine (ATM) services. Further, the company provides non-deposit products, such as mutual funds and annuities, and discount brokerage services; trust, asset management, and financial planning services; and insurance products and services to businesses and consumers, including property and casualty, life, marine, individual health, and long term care insurance, as well as pension and profit sharing plans, and retirement plans. It operates 21 full service branches, 23 ATMs, 2 loan production offices in Baltimore City, Baltimore County, Howard County, Kent County, Queen Anne's County, Caroline County, Talbot County, and Dorchester County in Maryland; Kent County, Delaware; and Accomack County, Virginia. Shore Bancshares, Inc. was founded in 1876 and is headquartered in Easton, Maryland.
About Shinhan Financial Group
Shinhan Financial Group Co., Ltd. provides financial products and services in South Korea and internationally. The company operates through five segments: Banking, Credit Cards, Securities, Life Insurance, and Others. It offers retail banking services, including mortgage and home equity, and retail lending; demand, savings, and fixed deposit-taking; checking accounts; electronic banking and automatic teller machines (ATM); and bill paying, payroll and check-cashing, currency exchange, and wire fund transfer services. The company also provides corporate banking services, such as investment banking, real estate financing, overseas real estate and development project financing, infrastructure and structured financing, equity/venture investments, mergers and acquisitions consulting, and securitization; derivatives services comprising securities and derivative products, and foreign exchange trading; and working capital loans and facilities loans. In addition, it is involved in treasury and investment activities in international capital markets consisting of foreign currency-denominated securities trading, foreign exchange trading and services, trade-related financial services, international factoring services, and foreign banking operations. Further, the company offers trust account management, securities brokerage, and asset management services, as well as leasing and equipment financing, savings banking, loan collection and credit reporting, collective investment administration, private equity investment, and financial system development services. As of December 31, 2017, it operated a network of 865 service centers; 6,076 ATMs; 9 cash dispensers; and 35 digital kiosks. Shinhan Financial Group Co., Ltd. was founded in 1982 and is headquartered in Seoul, South Korea.
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