Head to Head Analysis: Sumitomo Mitsui Trust (OTCMKTS:SUTNY) and Associated Banc (NYSE:ASB)

Sumitomo Mitsui Trust (OTCMKTS:SUTNY) and Associated Banc (NYSE:ASB) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, valuation, profitability, analyst recommendations, earnings and dividends.

Dividends

Sumitomo Mitsui Trust pays an annual dividend of $0.10 per share and has a dividend yield of 1.8%. Associated Banc pays an annual dividend of $0.96 per share and has a dividend yield of 3.1%. Sumitomo Mitsui Trust pays out 23.3% of its earnings in the form of a dividend. Associated Banc pays out 33.2% 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. Associated Banc has raised its dividend for 13 consecutive years. Associated Banc is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Sumitomo Mitsui Trust and Associated Banc, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sumitomo Mitsui Trust	0	1	0	0	2.00
Associated Banc	0	6	6	0	2.50

Associated Banc has a consensus target price of $32.70, indicating a potential upside of 6.05%. Given Associated Banc’s stronger consensus rating and higher probable upside, analysts clearly believe Associated Banc is more favorable than Sumitomo Mitsui Trust.

Profitability

This table compares Sumitomo Mitsui Trust and Associated Banc’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sumitomo Mitsui Trust	11.81%	10.45%	0.45%
Associated Banc	19.87%	10.75%	1.13%

Insider & Institutional Ownership

83.0% of Associated Banc shares are held by institutional investors. 0.7% of Associated Banc shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Sumitomo Mitsui Trust and Associated Banc”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sumitomo Mitsui Trust	$19.82 billion	1.54	$1.99 billion	$0.43	12.86
Associated Banc	$2.46 billion	2.33	$474.78 million	$2.89	10.67

Sumitomo Mitsui Trust has higher revenue and earnings than Associated Banc. Associated Banc is trading at a lower price-to-earnings ratio than Sumitomo Mitsui Trust, indicating that it is currently the more affordable of the two stocks.

Summary

Associated Banc beats Sumitomo Mitsui Trust on 12 of the 16 factors compared between the two stocks.

About Sumitomo Mitsui Trust

Sumitomo Mitsui Trust Group, Inc. is a Japan-based financial holding company whose businesses include banking, asset management, investor services and real estate. Its offerings include trust and banking services, investment products, pension and custody services, securities administration, and real estate brokerage and consulting. The group serves individuals, businesses, institutional investors and public-sector clients, primarily in Japan. It also maintains international operations to support cross-border banking, asset management and investor services.

About Associated Banc

Associated Banc-Corp is a bank holding company headquartered in Green Bay, Wisconsin. Its principal subsidiary, Associated Bank, provides banking and financial services to individuals, businesses, and organizations. The company offers consumer and commercial banking products, including deposit accounts, mortgage and other lending, business financing, and cash-management services. It also provides wealth management and related financial services. Associated Bank primarily serves customers in Wisconsin, Illinois, and Minnesota through its branches and other service channels.