Financial Analysis: DBS Group (OTCMKTS:DBSDY) vs. Pathward Financial (NASDAQ:CASH)

DBS Group (OTCMKTS:DBSDY – Get Rating) and Pathward Financial (NASDAQ:CASH – Get Rating) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, profitability, earnings and analyst recommendations.

Profitability

This table compares DBS Group and Pathward Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DBS Group	N/A	N/A	N/A
Pathward Financial	20.37%	18.73%	1.94%

Volatility & Risk

DBS Group has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500. Comparatively, Pathward Financial has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for DBS Group and Pathward Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DBS Group	0	1	2	0	2.67
Pathward Financial	0	1	2	0	2.67

Pathward Financial has a consensus target price of $49.25, indicating a potential upside of 11.37%. Given Pathward Financial’s higher probable upside, analysts plainly believe Pathward Financial is more favorable than DBS Group.

Institutional and Insider Ownership

0.2% of DBS Group shares are held by institutional investors. Comparatively, 89.6% of Pathward Financial shares are held by institutional investors. 1.4% of Pathward Financial shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

DBS Group pays an annual dividend of $3.98 per share and has a dividend yield of 4.1%. Pathward Financial pays an annual dividend of $0.20 per share and has a dividend yield of 0.5%. Pathward Financial pays out 4.8% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares DBS Group and Pathward Financial’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DBS Group	$15.59 billion	3.97	$5.94 billion	N/A	N/A
Pathward Financial	$606.00 million	2.01	$156.39 million	$4.21	10.50

DBS Group has higher revenue and earnings than Pathward Financial.

About DBS Group

(Get Rating)

DBS Group Holdings Ltd. is an investment company, which provides retail, small and medium-sized enterprise, corporate, and investment banking services. It operates through the following business segments: Consumer Banking/Wealth Management, Institutional Banking, Treasury Markets, and Others. The Consumer Banking/Wealth Management segment provides services including current and savings accounts, fixed deposits, loans and home finance, cards, payments, investment, and insurance products. The Institutional Banking segment offers financial services and products to institutional clients. The Treasury Markets segment deals with structuring, market-making, and trading across a broad range of treasury products. The others segment covers activities from corporate decisions and income; and expenses not attributed to the business segments described. The company was founded in 1968 and is headquartered in Singapore.

About Pathward Financial

(Get Rating)

Pathward Financial, Inc. operates as a financial holding company, which provides savings and loan services. The firm operates through the following business segments: Consumer, Commercial, and Corporate Services and Other. The Consumer segment provides meta payment systems (MPS), consumer credit products, warehouse finance and other tax services. The Commercial segment includes the Crestmark and AFS divisions. The Corporate Services and Other segment consists of certain shared services, treasury, retained community bank portfolio and student loan lending portfolio. The company was founded on June 14, 1993 and is headquartered in Sioux Falls, SD.