Head-To-Head Analysis: Shinhan Financial Group (NYSE:SHG) & TrustCo Bank Corp NY (NASDAQ:TRST)

TrustCo Bank Corp NY (NASDAQ:TRST) and Shinhan Financial Group (NYSE:SHG) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, risk, dividends and analyst recommendations.

Earnings & Valuation

This table compares TrustCo Bank Corp NY and Shinhan Financial Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TrustCo Bank Corp NY	$197.02 million	4.96	$61.14 million	$3.60	15.93
Shinhan Financial Group	$18,738.69 billion	0.00	$3.48 billion	$7.44	10.10

Shinhan Financial Group has higher revenue and earnings than TrustCo Bank Corp NY. Shinhan Financial Group is trading at a lower price-to-earnings ratio than TrustCo Bank Corp NY, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

TrustCo Bank Corp NY has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500. Comparatively, Shinhan Financial Group has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500.

Profitability

This table compares TrustCo Bank Corp NY and Shinhan Financial Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TrustCo Bank Corp NY	22.76%	9.62%	1.01%
Shinhan Financial Group	15.69%	8.69%	0.66%

Analyst Recommendations

This is a summary of current ratings and price targets for TrustCo Bank Corp NY and Shinhan Financial Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TrustCo Bank Corp NY	0	0	1	0	3.00
Shinhan Financial Group	0	0	1	1	3.50

Institutional and Insider Ownership

68.6% of TrustCo Bank Corp NY shares are held by institutional investors. Comparatively, 7.8% of Shinhan Financial Group shares are held by institutional investors. 3.4% of TrustCo Bank Corp NY shares are held by insiders. Comparatively, 1.0% of Shinhan Financial Group shares are held by insiders. 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.

Dividends

TrustCo Bank Corp NY pays an annual dividend of $1.52 per share and has a dividend yield of 2.7%. Shinhan Financial Group pays an annual dividend of $1.55 per share and has a dividend yield of 2.1%. TrustCo Bank Corp NY pays out 42.2% of its earnings in the form of a dividend. Shinhan Financial Group pays out 20.8% 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.

Summary

TrustCo Bank Corp NY beats Shinhan Financial Group on 8 of the 15 factors compared between the two stocks.

About TrustCo Bank Corp NY

TrustCo Bank Corp NY operates as the holding company for Trustco Bank, a federal savings bank that provides personal and business banking services to individuals and businesses. The company accepts deposits; and offers loans and investments. It also operates as a real estate investment trust that acquires, holds, and manages real estate mortgage assets, including residential mortgage loans and mortgage-backed securities. In addition, the company serves as the executor of estates and trustee of personal trusts; provides asset and wealth management, estate planning and related advice, and custodial services; and acts as trustee for various types of employee benefit plans, and corporate pension and profit-sharing trusts. It operates through banking offices in Albany, Columbia, Dutchess, Greene, Montgomery, Orange, Putnam, Rensselaer, Rockland, Saratoga, Schenectady, Schoharie, Ulster, Warren, Washington, and Westchester counties of New York; Brevard, Charlotte, Flagler, Hillsborough, Indian River, Lake, Manatee, Martin, Orange, Osceola, Palm Beach, Polk, Sarasota, Seminole, and Volusia counties in Florida; Bennington County in Vermont; Berkshire County in Massachusetts; and Bergen County in New Jersey, as well as automatic teller machines. The company was founded in 1902 and is headquartered in Glenville, New York.

About Shinhan Financial Group

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, Insurance, Credit, and Others. It offers retail banking services, including demand, savings, and fixed deposit-taking; checking accounts; mortgage and home equity, and retail lending; electronic banking and automatic teller machines (ATM); and bill paying, payroll and check-cashing, currency exchange, and wire fund transfer services. The company also provides corporate banking services, such as investment banking, real estate financing, overseas real estate and development project financing, infrastructure and structured financing, equity/venture investments, mergers and acquisitions consulting; securitization and derivatives services comprising securities and derivative products, and foreign exchange trading; business expansion financing and consulting services; and working capital loans and facilities loans. In addition, it is involved in treasury and investment activities in international capital markets consisting of foreign currency-denominated securities trading, foreign exchange trading and services, trade-related financial services, international factoring services, and foreign banking operations. Further, the company offers real estate trust, investment advisory, venture business investment, life and non-life insurance, trust account management, securities brokerage, and asset management services, as well as leasing and equipment financing, savings banking, loan collection and credit reporting, collective investment administration, private equity investment, and financial system development services. Additionally, it provides transaction history inquiries and fund transfers, opening letters of credit, trade finance, payment and collection management, sales and acquisition settlement, business-to-business settlement, sweeping, pooling, ERP interface, host-to-host banking, SWIFT SCORE, and cash and liquidity management service. Shinhan Financial Group Co., Ltd. was founded in 1982 and is headquartered in Seoul, South Korea.