Head to Head Analysis: DBS Group (OTCMKTS:DBSDY) & Sumitomo Mitsui Financial Group (NYSE:SMFG)

DBS Group (OTCMKTS:DBSDY) and Sumitomo Mitsui Financial Group (NYSE:SMFG) are both large-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Volatility and Risk

DBS Group has a beta of 0.52, meaning that its stock price is 48% less volatile than the S&P 500. Comparatively, Sumitomo Mitsui Financial Group has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for DBS Group and Sumitomo Mitsui Financial Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DBS Group	0	1	0	1	3.00
Sumitomo Mitsui Financial Group	0	1	1	0	2.50

Institutional & Insider Ownership

0.2% of DBS Group shares are held by institutional investors. Comparatively, 3.8% of Sumitomo Mitsui Financial Group shares are held by institutional investors. 0.1% of Sumitomo Mitsui Financial Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

DBS Group pays an annual dividend of $8.03 per share and has a dividend yield of 3.6%. Sumitomo Mitsui Financial Group pays an annual dividend of $0.47 per share and has a dividend yield of 1.8%. Sumitomo Mitsui Financial Group pays out 35.1% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares DBS Group and Sumitomo Mitsui Financial Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DBS Group	$28.07 billion	5.68	$8.37 billion	N/A	N/A
Sumitomo Mitsui Financial Group	$71.68 billion	2.30	$7.84 billion	$1.34	19.30

DBS Group has higher earnings, but lower revenue than Sumitomo Mitsui Financial Group.

Profitability

This table compares DBS Group and Sumitomo Mitsui Financial Group’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
Sumitomo Mitsui Financial Group	15.68%	10.19%	0.53%

About DBS Group

DBS Group Holdings Ltd provides commercial banking and financial services in Singapore, Hong Kong, rest of Greater China, South and Southeast Asia, and internationally. The company’s Consumer Banking/Wealth Management segment offers banking and related financial services, including current and savings accounts, fixed deposits, loans and home finance, cards, payments, investment, and insurance products for individual customers. Its Institutional Banking segment provides financial services and products for bank and non-bank financial institutions, government-linked companies, large corporates, and small and medium sized businesses. Its products and services comprise short-term working capital financing and specialized lending; cash management, trade finance, and securities and fiduciary services; treasury and markets products; and corporate finance and advisory banking, as well as capital markets solutions. The company’s Treasury Markets segment is involved in the structuring, market-making, and trading in a range of treasury products. DBS Group Holdings Ltd was founded in 1968 and is headquartered in Singapore.

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.