Standard Bank Group (OTCMKTS:SGBLY) vs. ENB Financial (OTCMKTS:ENBP) Critical Analysis

Standard Bank Group (OTCMKTS:SGBLY) and ENB Financial (OTCMKTS:ENBP) are both financial services companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, dividends, institutional ownership, risk, profitability, analyst recommendations and valuation.

Analyst Recommendations

This is a summary of current recommendations and price targets for Standard Bank Group and ENB Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Standard Bank Group	0	1	1	0	2.50
ENB Financial	0	0	0	0	0.00

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Standard Bank Group	N/A	N/A	N/A
ENB Financial	N/A	N/A	N/A

Institutional & Insider Ownership

0.0% of Standard Bank Group shares are held by institutional investors. Comparatively, 0.3% of ENB Financial shares are held by institutional investors. 1.8% of ENB Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Standard Bank Group and ENB Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Standard Bank Group	N/A	N/A	N/A	$10.11	1.74
ENB Financial	N/A	N/A	N/A	$2.60	8.84

Standard Bank Group is trading at a lower price-to-earnings ratio than ENB Financial, indicating that it is currently the more affordable of the two stocks.

Dividends

Standard Bank Group pays an annual dividend of $4.08 per share and has a dividend yield of 23.3%. ENB Financial pays an annual dividend of $1.06 per share and has a dividend yield of 4.6%. Standard Bank Group pays out 40.4% of its earnings in the form of a dividend. ENB Financial pays out 40.7% 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. Standard Bank Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Standard Bank Group beats ENB Financial on 5 of the 8 factors compared between the two stocks.

About Standard Bank Group

Standard Bank Group Limited provides banking and financial products and services in South Africa and internationally. It offers transactional accounts and digital banking platforms; personal and business lending solutions to enhance cash flow; finance for buying, building, and maintaining home; foreign exchange services; trusts and third-party administration accounts; workplace solutions, such as payroll and HR, financial planning, and employer value banking; merchant solutions, including point-of-sale, ecommerce, digital payments, payment processing, and small business support; and cash management services. The company also provides industry-specific solutions; trade point solutions; fleet solutions; and finance for commercial and personal vehicle, commercial property, and commercial asset, as well as disclosed and non-disclosed debtor. In addition, it offers card and payment solutions, such as digital wallet, prepaid digital cards, contactless payments, mobile payments, credit cards, and internet banking. Further, the company provides investment solutions comprises investment accounts, share trading, financial planning, forex investment, risk limitation, and wealth preservation; and green bonds, and social and sustainable bonds for housing and renewable energy. Additionally, it offers vehicle, life, property, health, and employee protection insurance; wills and estates insurance; commercial cyber insurance; and risk mitigation, insurance spend optimization, and strategic claim management solutions. The company serves individuals, businesses, institutions, and corporations. Standard Bank Group Limited was founded in 1862 and is headquartered in Johannesburg, South Africa.

About ENB Financial

ENB Financial Corp operates as the bank holding company for Ephrata National Bank that provides various financial services to individuals and small-to-medium-sized businesses in Pennsylvania, the United States. The company's deposit products include non-interest bearing and interest-bearing demand deposits, NOW accounts, money market deposit accounts, savings accounts, and time deposits. Its loan portfolio comprises secured and unsecured commercial, real estate, and consumer loans. The company also provides direct deposit and direct payments of funds through electronic funds transfer. In addition, it offers ATM, telephone banking, debit and credit card, safe deposit box, remote deposit capture, and trust and investment advisory services, as well as internet banking services, that includes bill pay and wire transfer. The company was founded in 1881 and is headquartered in Ephrata, Pennsylvania.