Contrasting Sumitomo Mitsui Financial Group (NYSE:SMFG) & Banco Bilbao Vizcaya Argentaria (NYSE:BBVA)

Sumitomo Mitsui Financial Group (NYSE:SMFGGet Free Report) and Banco Bilbao Vizcaya Argentaria (NYSE:BBVAGet Free Report) are both large-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, valuation, institutional ownership and earnings.

Volatility and Risk

Sumitomo Mitsui Financial Group has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500. Comparatively, Banco Bilbao Vizcaya Argentaria has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500.

Earnings & Valuation

This table compares Sumitomo Mitsui Financial Group and Banco Bilbao Vizcaya Argentaria’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sumitomo Mitsui Financial Group $45.46 billion 1.67 $6.83 billion $0.88 12.93
Banco Bilbao Vizcaya Argentaria $31.97 billion 2.20 $8.68 billion $1.39 8.50

Banco Bilbao Vizcaya Argentaria has lower revenue, but higher earnings than Sumitomo Mitsui Financial Group. Banco Bilbao Vizcaya Argentaria is trading at a lower price-to-earnings ratio than Sumitomo Mitsui Financial Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Sumitomo Mitsui Financial Group and Banco Bilbao Vizcaya Argentaria’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sumitomo Mitsui Financial Group 9.71% 7.27% 0.35%
Banco Bilbao Vizcaya Argentaria 27.15% 14.85% 1.04%

Dividends

Sumitomo Mitsui Financial Group pays an annual dividend of $0.29 per share and has a dividend yield of 2.5%. Banco Bilbao Vizcaya Argentaria pays an annual dividend of $0.27 per share and has a dividend yield of 2.3%. Sumitomo Mitsui Financial Group pays out 33.0% of its earnings in the form of a dividend. Banco Bilbao Vizcaya Argentaria pays out 19.4% 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. Sumitomo Mitsui Financial Group has raised its dividend for 1 consecutive years. Sumitomo Mitsui Financial Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

3.9% of Sumitomo Mitsui Financial Group shares are held by institutional investors. Comparatively, 3.0% of Banco Bilbao Vizcaya Argentaria shares are held by institutional investors. 0.1% of Sumitomo Mitsui Financial Group shares are held by insiders. Comparatively, 0.0% of Banco Bilbao Vizcaya Argentaria shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Sumitomo Mitsui Financial Group and Banco Bilbao Vizcaya Argentaria, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sumitomo Mitsui Financial Group 0 1 0 0 2.00
Banco Bilbao Vizcaya Argentaria 0 2 2 0 2.50

Summary

Banco Bilbao Vizcaya Argentaria beats Sumitomo Mitsui Financial Group on 10 of the 16 factors compared between the two stocks.

About Sumitomo Mitsui Financial Group

(Get Free Report)

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.

About Banco Bilbao Vizcaya Argentaria

(Get Free Report)

Banco Bilbao Vizcaya Argentaria, S.A. provides retail banking, wholesale banking, and asset management services in the United States, Spain, Mexico, Turkey, South America, and internationally. The company offers savings account, demand deposits, and time deposits; and loan products, such as residential mortgages, other households, credit card loans, loans to enterprises and public sector, as well as consumer finance. It provides insurance and asset management business, including corporate, commercial, SME, payment systems, retail, private and investment banking, pension and life insurance, leasing, factoring, and brokerage. The company provides its products through online and mobile channels. Banco Bilbao Vizcaya Argentaria, S.A. was founded in 1857 and is headquartered in Bilbao, Spain.

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