Shinhan Financial Group (NYSE:SHG) versus Standard Chartered (OTC:SCBFF) Head to Head Contrast

Shinhan Financial Group (NYSE:SHG) and Standard Chartered (OTC:SCBFF) are both large-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.

Valuation and Earnings

This table compares Shinhan Financial Group and Standard Chartered”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shinhan Financial Group	$25.42 billion	0.67	$3.49 billion	$6.37	5.33
Standard Chartered	$37.48 billion	0.94	$3.47 billion	$1.50	9.59

Shinhan Financial Group has higher earnings, but lower revenue than Standard Chartered. Shinhan Financial Group is trading at a lower price-to-earnings ratio than Standard Chartered, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Shinhan Financial Group has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, Standard Chartered has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500.

Dividends

Shinhan Financial Group pays an annual dividend of $1.21 per share and has a dividend yield of 3.6%. Standard Chartered pays an annual dividend of $0.18 per share and has a dividend yield of 1.3%. Shinhan Financial Group pays out 19.0% of its earnings in the form of a dividend. Standard Chartered pays out 12.0% 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.

Insider and Institutional Ownership

7.8% of Shinhan Financial Group shares are held by institutional investors. 1.0% of Shinhan Financial Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Shinhan Financial Group and Standard Chartered, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shinhan Financial Group	0	0	0	0	0.00
Standard Chartered	0	0	0	1	4.00

Profitability

This table compares Shinhan Financial Group and Standard Chartered’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shinhan Financial Group	12.21%	7.34%	0.59%
Standard Chartered	10.92%	9.49%	0.58%

Summary

Shinhan Financial Group beats Standard Chartered on 8 of the 15 factors compared between the two stocks.

About Shinhan Financial Group

Shinhan Financial Group Co., Ltd. provides financial products and services in South Korea and internationally. The company operates through six segments: Banking, Credit Card, Securities, Insurance, Credit, and Others. It offers retail banking services, including demand, savings, and fixed deposit-taking; checking accounts; mortgage and home equity, and retail lending; 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; securitization and derivatives services comprising securities and derivative products, and foreign exchange trading; business expansion financing and consulting services; 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 real estate trust, investment advisory, venture business investment, life and non-life insurance, 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. Additionally, it provides transaction history inquiries and fund transfers, opening letters of credit, trade finance, payment and collection management, sales and acquisition settlement, business-to-business settlement, sweeping, pooling, ERP interface, host-to-host banking, SWIFT SCORE, and cash and liquidity management service. Shinhan Financial Group Co., Ltd. was founded in 1982 and is headquartered in Seoul, South Korea.

About Standard Chartered

Standard Chartered PLC, together with its subsidiaries, provides various banking products and services in Asia, Africa, the Middle East, Europe, and the Americas. The company operates in three segments: Corporate, Commercial & Institutional Banking; Consumer, Private & Business Banking; and Ventures. It offers retail products, such as deposits, mortgages, credit cards, and personal loans; wealth management products and services that include investments, portfolio management, insurance, and wealth advice; and transaction banking services, such as cash management, working capital, and trade financing products. The company provides financial markets products and services that comprise project and export financing; debt capital markets and leveraged financing; financing and securities services; sales and structuring; macro, commodities, and credit trading; and market research services. In addition, it offers digital banking solutions. It serves financial institutions, governments, banks, investors, corporations, small to medium-sized businesses, and individuals. Standard Chartered PLC was founded in 1853 and is headquartered in London, the United Kingdom.