Woori Bank (NYSE:WF) and HANG SENG Bk Lt/S (OTCMKTS:HSNGY) are both large-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, profitability and risk.
Risk and Volatility
Woori Bank has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500. Comparatively, HANG SENG Bk Lt/S has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500.
0.5% of Woori Bank shares are owned by institutional investors. Comparatively, 0.0% of HANG SENG Bk Lt/S shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Woori Bank pays an annual dividend of $1.17 per share and has a dividend yield of 2.7%. HANG SENG Bk Lt/S pays an annual dividend of $0.58 per share and has a dividend yield of 2.2%. Woori Bank pays out 21.7% of its earnings in the form of a dividend. HANG SENG Bk Lt/S pays out 43.9% 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. Woori Bank is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares Woori Bank and HANG SENG Bk Lt/S’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|HANG SENG Bk Lt/S||N/A||N/A||N/A|
Earnings and Valuation
This table compares Woori Bank and HANG SENG Bk Lt/S’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Woori Bank||$8.94 billion||1.10||$1.42 billion||$5.40||8.09|
|HANG SENG Bk Lt/S||$10.17 billion||4.91||$2.57 billion||$1.32||19.78|
HANG SENG Bk Lt/S has higher revenue and earnings than Woori Bank. Woori Bank is trading at a lower price-to-earnings ratio than HANG SENG Bk Lt/S, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings for Woori Bank and HANG SENG Bk Lt/S, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|HANG SENG Bk Lt/S||0||0||0||0||N/A|
Woori Bank beats HANG SENG Bk Lt/S on 9 of the 13 factors compared between the two stocks.
About Woori Bank
Woori Bank engages in the provision of personal and commercial banking services. It operates through the following segments: Consumer Banking, Corporate Banking, Investment Banking, Capital Markets, Credit Cards, and Other Operations. The Consumer Banking segment consists of lending to and taking deposits from its retail customers. The Corporate Banking segment provides commercial banking services to large corporate customers including government-owned enterprises and small- and medium-sized enterprises. The Investment Banking segment offers project finance and financial advisory services. The Capital Markets segment includes securities investment and trading, derivatives trading, asset securitization services, and investment banking. The Credit Cards segment comprises of Woori, BC Card, and Visa brands. The Other Operations segment manages credit management and collection department, treasury operations, including transactions of available-for-sale securities and financing among financial institutions. The compan ywas founded on January 30, 1899 and is headquartered in Seoul, South Korea.
About HANG SENG Bk Lt/S
Hang Seng Bank Limited, together with its subsidiaries, provides various banking and related financial services to individual, corporate, commercial, small and medium-sized enterprise, and institutional customers in Hong Kong, Mainland China, and internationally. It operates through four segments: Retail Banking and Wealth Management, Commercial Banking, Global Banking and Markets, and Other. The company offers personal banking services, including current and savings accounts, mortgages and personal loans, credit cards, and insurance and wealth management services, as well as consumer lending services. It also provides corporate lending, trade and receivable finance, payments and cash management, treasury and foreign exchange, general insurance, key-person insurance, investment, and corporate wealth management services, as well as general banking, interest rate, money market, structured, derivative products, etc. In addition, the company offers trustee, nominee, retirement benefit and life assurance, fund management, stock broking, and property management services, as well as engages in the compilation and dissemination of the Hang Seng share index. As of March 12, 2018, it operated 270 service outlets in Hong Kong; branches in Macau and Singapore; and a representative office in Taipei. Hang Seng Bank Limited, through its subsidiary, Hang Seng Bank (China) Limited, operates a mainland China network with outlets in the Pearl River delta, the Yangtze River delta, the Bohai Rim region, and Midwest China. The company was founded in 1933 and is headquartered in Central, Hong Kong. Hang Seng Bank Limited is a subsidiary of The Hongkong and Shanghai Banking Corporation Limited.
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