Sumitomo Mitsui Financial Grp (NYSE: BLX) and Banco Latinoamericano de Comerci Extr (NYSE:BLX) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Valuation and Earnings

This table compares Sumitomo Mitsui Financial Grp and Banco Latinoamericano de Comerci Extr’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sumitomo Mitsui Financial Grp $52.05 billion 1.07 $6.93 billion $1.01 7.78
Banco Latinoamericano de Comerci Extr $244.58 million 3.34 $81.99 million $2.08 9.97

Sumitomo Mitsui Financial Grp has higher revenue and earnings than Banco Latinoamericano de Comerci Extr. Sumitomo Mitsui Financial Grp is trading at a lower price-to-earnings ratio than Banco Latinoamericano de Comerci Extr, indicating that it is currently the more affordable of the two stocks.

Dividends

Sumitomo Mitsui Financial Grp pays an annual dividend of $0.26 per share and has a dividend yield of 3.3%. Banco Latinoamericano de Comerci Extr pays an annual dividend of $1.54 per share and has a dividend yield of 7.4%. Sumitomo Mitsui Financial Grp pays out 25.7% of its earnings in the form of a dividend. Banco Latinoamericano de Comerci Extr pays out 74.0% 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.

Profitability

This table compares Sumitomo Mitsui Financial Grp and Banco Latinoamericano de Comerci Extr’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sumitomo Mitsui Financial Grp 12.31% 6.47% 0.39%
Banco Latinoamericano de Comerci Extr 29.16% 7.39% 1.25%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Sumitomo Mitsui Financial Grp and Banco Latinoamericano de Comerci Extr, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sumitomo Mitsui Financial Grp 0 0 0 0 N/A
Banco Latinoamericano de Comerci Extr 0 1 0 0 2.00

Banco Latinoamericano de Comerci Extr has a consensus target price of $28.00, indicating a potential upside of 35.07%. Given Banco Latinoamericano de Comerci Extr’s higher probable upside, analysts plainly believe Banco Latinoamericano de Comerci Extr is more favorable than Sumitomo Mitsui Financial Grp.

Insider and Institutional Ownership

2.7% of Sumitomo Mitsui Financial Grp shares are owned by institutional investors. Comparatively, 16.0% of Banco Latinoamericano de Comerci Extr shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Sumitomo Mitsui Financial Grp has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500. Comparatively, Banco Latinoamericano de Comerci Extr has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500.

Summary

Banco Latinoamericano de Comerci Extr beats Sumitomo Mitsui Financial Grp on 10 of the 13 factors compared between the two stocks.

Sumitomo Mitsui Financial Grp Company Profile

Sumitomo Mitsui Financial Group, Inc., together with its subsidiaries, provides commercial banking, leasing, securities, consumer finance, and other services primarily in Japan. It operates through four segments: Wholesale Business, Retail Business, International Business, and Global Markets Business. The Wholesale Business segment provides financing, investment management, risk hedging and settlement services, as well as financial solutions for mergers and acquisition and other advisory services and leasing, primarily for large-and mid-sized corporate clients; and various leasing services, including equipment, and operating and leveraged leasing. The Retail Business segment offers wealth management, settlement services, consumer finance, and housing loans. The International Business segment provides loans, deposits, clearing services, trade finance, project finance, loan syndication, derivatives, and global cash management services; underwriting services; and leasing services related to the construction machinery, transportation equipment, industrial machinery, medical equipment, and aircraft leasing. As of March 31, 2018, this segment's network consisted of 18 branches, 22 sub-branches, and 4 representative offices. The Global Markets Business segment offers foreign exchange products, derivatives, bonds, stocks and other marketable financial products, and undertakes asset liability management operations. It also offers system development, data processing, management consulting, and economic research services; and investment advisory and investment trust management services. The company was founded in 1590 and is headquartered in Tokyo, Japan.

Banco Latinoamericano de Comerci Extr Company Profile

Banco Latinoamericano de Comercio Exterior, S.A., a multinational bank, primarily engages in the financing of foreign trade in Latin America and the Caribbean. The company operates through two segments, Commercial and Treasury. It offers short and medium-term bilateral, collateral-backed, short and medium term trade, and pre-export financing structured loans; and discounting of notes, cross-border leasing, pre- and post-export financing, import financing, letters of credit, bank guarantees, documentary collection, irrevocable reimbursement undertakings, bankers' acceptance, vendor finance, and ECA-backed financing services. The company also provides working capital financing solutions, including short and medium-term bilateral loans, collateral-backed bilateral loans, leases, and vendor finance; structured syndicated and clubbed loans, such as acquisition financing, pre-export financing, A/B loan financing with multilateral agencies, bridge loans, and liability management; and treasury solutions comprising term deposits and private placements. It primarily serves corporations, middle-market companies, and banking and financial institutions. The company was formerly known as Banco Latinoamericano de Exportaciones, S.A. and changed its name to Banco Latinoamericano de Comercio Exterior, S.A. in June 2009. Banco Latinoamericano de Comercio Exterior, S.A. was founded in 1977 and is headquartered in Panama City, the Republic of Panama.

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