Western New England Bancorp (NASDAQ: WNEB) and Shinhan Financial Group (NYSE:SHG) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, risk and valuation.
Risk and Volatility
Western New England Bancorp has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500. Comparatively, Shinhan Financial Group has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500.
Valuation and Earnings
This table compares Western New England Bancorp and Shinhan Financial Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Western New England Bancorp||$82.54 million||3.87||$12.32 million||$0.41||25.73|
|Shinhan Financial Group||$17.19 billion||1.15||$2.63 billion||$11.67||3.56|
Shinhan Financial Group has higher revenue and earnings than Western New England Bancorp. Shinhan Financial Group is trading at a lower price-to-earnings ratio than Western New England Bancorp, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations for Western New England Bancorp and Shinhan Financial Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Western New England Bancorp||0||3||1||0||2.25|
|Shinhan Financial Group||0||0||0||0||N/A|
Western New England Bancorp currently has a consensus price target of $11.83, indicating a potential upside of 12.16%. Given Western New England Bancorp’s higher possible upside, equities research analysts clearly believe Western New England Bancorp is more favorable than Shinhan Financial Group.
Western New England Bancorp pays an annual dividend of $0.16 per share and has a dividend yield of 1.5%. Shinhan Financial Group does not pay a dividend. Western New England Bancorp pays out 39.0% of its earnings in the form of a dividend.
Institutional and Insider Ownership
54.1% of Western New England Bancorp shares are held by institutional investors. Comparatively, 2.4% of Shinhan Financial Group shares are held by institutional investors. 5.6% of Western New England Bancorp shares are held by company insiders. Comparatively, 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.
This table compares Western New England Bancorp and Shinhan Financial Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Western New England Bancorp||14.93%||6.00%||0.72%|
|Shinhan Financial Group||16.99%||8.63%||0.68%|
Western New England Bancorp beats Shinhan Financial Group on 8 of the 15 factors compared between the two stocks.
Western New England Bancorp Company Profile
Western New England Bancorp, Inc., formerly Westfield Financial, Inc., is a Massachusetts-chartered stock holding company. The Company serves as a holding company for Westfield Bank (the Bank). It is a provider of banking products and services to business organizations and individuals, including products such as residential and commercial loans, consumer loans and a variety of deposit products. It focuses on residential real estate lending, as well as servicing commercial customers, including commercial and industrial lending and commercial deposit relationships. In addition, it provides online banking services. It operates through over 21 banking offices located in Agawam, Chicopee, East Longmeadow, Feeding Hills, Holyoke, Ludlow, Southwick, Springfield, Ware, West Springfield and Westfield, Massachusetts, and Granby and Enfield, Connecticut. It also has over 10 automated teller machine (ATM) locations in Holyoke, Southwick, Springfield, West Springfield and Westfield, Massachusetts.
Shinhan Financial Group Company Profile
Shinhan Financial Group Co., Ltd. (SFG) is a financial holding company. The Company operates through five segments: commercial banking services, which are provided by Shinhan Bank Co., Ltd. (Shinhan Bank); credit card services, which are provided by Shinhan Card Co., Ltd. (Shinhan Card); securities brokerage services, which are provided by Shinhan Investment Corp. (Shinhan Investment); life insurance services, which are provided by Shinhan Life Insurance Co., Ltd. (Shinhan Life Insurance), and other. The Company’s other services include leasing and equipment financing, regional banking services, savings banking services, loan collection and credit reporting, collective investment administrative services and financial system development services, as well as engaging in private equity investments through formation of private equity funds on a private placement basis. It also offers asset management services, including brokerage and trading of various securities.
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