Reviewing OFG Bancorp (NYSE:OFG) and Shinsei Bank (OTCMKTS:SKLKY)

OFG Bancorp (NYSE:OFG) and Shinsei Bank (OTCMKTS:SKLKY) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Analyst Ratings

This is a summary of current ratings and target prices for OFG Bancorp and Shinsei Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OFG Bancorp	0	4	2	1	2.57
Shinsei Bank	0	0	0	0	0.00

OFG Bancorp currently has a consensus price target of $55.20, indicating a potential upside of 5.69%. Given OFG Bancorp’s stronger consensus rating and higher possible upside, equities analysts clearly believe OFG Bancorp is more favorable than Shinsei Bank.

Earnings and Valuation

This table compares OFG Bancorp and Shinsei Bank”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OFG Bancorp	$902.28 million	2.45	$205.10 million	$5.08	10.28
Shinsei Bank	N/A	N/A	N/A	N/A	N/A

OFG Bancorp has higher revenue and earnings than Shinsei Bank.

Institutional & Insider Ownership

92.7% of OFG Bancorp shares are held by institutional investors. 1.2% of OFG Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares OFG Bancorp and Shinsei Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OFG Bancorp	24.08%	15.92%	1.80%
Shinsei Bank	N/A	N/A	N/A

Summary

OFG Bancorp beats Shinsei Bank on 10 of the 10 factors compared between the two stocks.

About OFG Bancorp

OFG Bancorp, a financial holding company, provides a range of banking and financial services. It operates through three segments: Banking, Wealth Management, and Treasury. The company offers checking and savings accounts, and individual retirement accounts; certificate of deposits, as well as time deposit products; commercial, consumer, auto leasing, and mortgage lending services; credit cards; cash management; financial planning and insurance services; and corporate and individual trust, and retirement services. In addition, it provides securities brokerage and investment advisory services, including various investment alternatives, such as tax-advantaged fixed income securities, mutual funds, stocks, and bonds to retail and institutional clients; and separately-managed accounts and mutual fund asset allocation programs. Further, the company engages in the insurance agency and reinsurance businesses; administration and servicing of retirement plans; and various treasury-related functions with an investment portfolio consisting of mortgage-backed securities, obligations of U.S. government sponsored agencies, and U.S. Treasury securities and money market instruments. Additionally, it offers money management and investment banking services; and engages in the asset/liability management activities, such as purchases and sales of investment securities, interest rate risk management, derivatives, and borrowings. The company provides investment brokerage, transactional, international trade financing, residential mortgage, and consumer finance services. OFG Bancorp was founded in 1964 and is headquartered in San Juan, Puerto Rico.

About Shinsei Bank

Shinsei Bank, Limited provides various banking and financial products and services to individual customers, corporations, public-sector entities, and financial institutions in Japan. It offers Yen/foreign currency deposits, and structured deposits; home mortgages; corporate loans, finance for start-up, real estate non-recourse finance, project finance, renewable energy finance, acquisition finance, ship finance, healthcare finance, sustainable finance/impact finance, M&A related finance, and specialty finance; and loan syndication. The company also provides foreign exchange and derivatives, M&A advisory, credit trading, private equity, business succession and change/closure support services, and wealth management, as well as prepaid and credit cards. In addition, it engages in the provision of trust services, leasing related financial products and services, equity related and other capital markets transactions, securities, asset and wealth management, unsecured loans, housing loans, investment trusts, brokerage, life and non-life insurance, consumer finance products and services, credit guarantee services, installment sales finance, credit cards, loan and payment services, and treasury services. The company was formerly known as The Long-Term Credit Bank of Japan, Limited and changed its name to Shinsei Bank, Limited in June 2000. Shinsei Bank, Limited was incorporated in 1952 and is headquartered in Tokyo, Japan.