Review of Shinhan Financial Group (NYSE:SHG) and Old Point Financial (NASDAQ:OPOF)

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Shinhan Financial Group (NYSE: SHGGet a rating) and Old Point Financial (NASDAQ:OPOFGet a rating) are both finance companies, but which is the superior investment? We’ll compare the two companies based on their risk strength, earnings, profitability, dividends, analyst recommendations, valuation, and institutional ownership.

Institutional and Insider Ownership

7.6% of Shinhan Financial Group shares are held by institutional investors. By comparison, 32.6% of shares in Old Point Financial are held by institutional investors. 1.0% of Shinhan Financial Group shares are held by insiders. By comparison, 16.2% of shares in Old Point Financial are held by insiders. Strong institutional ownership indicates that hedge funds, large fund managers, and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Shinhan Financial Group has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500. Comparatively, Old Point Financial has a beta of 0.76, indicating that its stock price is its stock is 24% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Shinhan Financial Group and Old Point Financial, as provided by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Shinhan Financial Group 0 0 0 0 N / A
Old Point Financial 0 0 0 0 N / A

Profitability

This table compares the net margins, return on equity and return on assets of Shinhan Financial Group and Old Point Financial.

Net margins Return on equity return on assets
Shinhan Financial Group 20.66% 8.51% 0.65%
Old Point Financial 13.32% 6.35% 0.57%

Dividends

Shinhan Financial Group pays an annual dividend of $0.48 per share and has a dividend yield of 1.7%. Old Point Financial pays an annual dividend of $0.52 per share and has a dividend yield of 2.1%. Shinhan Financial Group pays 7.4% of its profits as a dividend. Old Point Financial pays 36.6% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Old Point Financial has increased its dividend for 1 consecutive years. Old Point Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and benefits

This table compares the revenue, earnings per share (EPS), and valuation of Shinhan Financial Group and Old Point Financial.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Shinhan Financial Group $14.57 billion 0.98 $3.62 billion $6.48 4.29
Old Point Financial $57.14 million 2.21 $8.44 million $1.42 5:45 p.m.

Shinhan Financial Group has higher revenue and profit than Old Point Financial. Shinhan Financial Group trades at a lower price-to-earnings ratio than Old Point Financial, indicating that it is currently the more affordable of the two stocks.

Summary

Shinhan Financial Group beats Old Point Financial on 8 out of 14 factors compared between the two stocks.

About Shinhan Financial Group (Get a rating)

Shinhan Financial Group Co., Ltd. provides financial products and services in South Korea and internationally. The Company operates through six segments: banking, credit card, securities, life insurance, credit and others. It offers retail banking services, including demand, savings and taking fixed deposits; verify accounts; mortgages and home equity, and personal loans; electronic banking services and automated teller machines (ATMs); and bill payment, payroll and check cashing, currency exchange and funds transfer services. The Company also provides corporate banking services, such as investment banking, real estate finance, overseas real estate and development project finance, infrastructure and structured finance, venture capital investments, advice on mergers and acquisitions; securitization and derivatives services involving securities and derivatives, and foreign exchange transactions; and working capital loans and facility loans. In addition, it is involved in treasury and investment activities in international capital markets comprising trading in foreign currency denominated securities, trading and foreign exchange services, trade-related financial services, factoring services international and foreign banking operations. In addition, the Company offers trust account management, securities brokerage and asset management services, as well as equipment leasing and financing, savings banking, collections lending and credit reporting, collective investment scheme administration, private equity investment and financial systems development. As of December 31, 2021, it operates a network of 784 service centers; 5,234 ATMs; 7 ATMs; and 85 digital kiosks. Shinhan Financial Group Co., Ltd. was founded in 1982 and is headquartered in Seoul, South Korea.

About Old Point Financial (Get a rating)

Old Point Financial LogoOld Point Financial Corporation operates as a bank holding company for The Old Point National Bank of Phoebus which provides consumer, mortgage and business banking services for individuals and businesses in Virginia. The Company offers deposit products, including interest-bearing transaction accounts, money market deposit accounts, savings accounts, term deposits and demand deposits. It also offers construction, commercial and mortgage real estate loans, such as 1-4 family residential mortgages, multi-family and second lien mortgages and equity lines of credit; and other loans, as well as cash management services. In addition, the Company provides retirement planning, estate planning, financial planning, estate and trust administration, pension plan administration, tax and investment management services; and insurance products and wealth management services. It operates 14 branches in Hampton Roads communities in Hampton, Newport News, Norfolk, Virginia Beach, Chesapeake, Williamsburg/James City County, York County, and Isle of Wight County; a loan origination office in Richmond, Virginia; and a mortgage origination office in Charlotte, North Carolina. The company was founded in 1922 and is based in Hampton, Virginia.



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