Comparing Bank Hapoalim (OTCMKTS:BKHYY) & Sumitomo Mitsui Financial Group (NYSE:SMFG)

Risk and Volatility

Sumitomo Mitsui Financial Group has a beta of 0.4, indicating that its stock price is 60% less volatile than the S&P 500. Comparatively, Bank Hapoalim has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sumitomo Mitsui Financial Group	$66.82 billion	1.44	$7.77 billion	$0.91	16.29
Bank Hapoalim	$10.95 billion	2.11	$2.08 billion	$8.27	10.62

Sumitomo Mitsui Financial Group has higher revenue and earnings than Bank Hapoalim. Bank Hapoalim 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.

Dividends

Sumitomo Mitsui Financial Group pays an annual dividend of $0.11 per share and has a dividend yield of 0.7%. Bank Hapoalim pays an annual dividend of $2.24 per share and has a dividend yield of 2.6%. Sumitomo Mitsui Financial Group pays out 12.1% of its earnings in the form of a dividend. Bank Hapoalim pays out 27.1% 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 Group and Bank Hapoalim’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sumitomo Mitsui Financial Group	11.57%	7.96%	0.40%
Bank Hapoalim	19.73%	14.07%	1.14%

Institutional & Insider Ownership

3.9% of Sumitomo Mitsui Financial Group shares are owned by institutional investors. 0.1% of Sumitomo Mitsui Financial Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Bank Hapoalim beats Sumitomo Mitsui Financial Group on 7 of the 13 factors compared between the two stocks.

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.

About Bank Hapoalim

Bank Hapoalim B.M., together with its subsidiaries, provides various banking and financial products and services in Israel and internationally. It operates through Household, Private Banking, Small businesses and micro businesses, Mid-sized businesses, Large businesses, Institutional entities, and Financial management segments. The company offers account-management services, lending for various purposes, deposits, and savings plans, and capital-market service; housing loans; research and advisory services; and pension advisory and retirement planning services. It also provides products and services for the expansion of a business, advanced digital services, and a service center specializing in businesses; credit for routine operations and investment financing, guarantees, letters of credit, foreign trade, and transactions in financial and derivative instruments, as well as investment services in various channels, such as foreign currency, shekels, and securities. In addition, the company offers financial services, including foreign-trade financing, financing of working capital, financing of assets overseas, complex financing transactions, syndication, and credit-risk transfers; and financing of construction projects, granting credit to customers, and issuing guarantees to buyers of homes. Further, it provides managers of mutual funds, managers of investment portfolios, and managers of provident funds, study funds, and pension funds; trading activities; underwriting services; and brokerage and custody services. The company serves households, private-banking customers, foreign residents, small businesses, financial-asset managers, middle-market business clients, and large corporations. Bank Hapoalim B.M. was founded in 1921 and is based in Tel Aviv, Israel.