Head-To-Head Contrast: Grupo Cibest (NYSE:CIB) vs. Shinhan Financial Group (NYSE:SHG)

Shinhan Financial Group (NYSE:SHG) and Grupo Cibest (NYSE:CIB) are both large-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, risk, dividends, institutional ownership and profitability.

Earnings and Valuation

This table compares Shinhan Financial Group and Grupo Cibest”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shinhan Financial Group	$18,390.84 billion	0.00	$3.48 billion	$9.01	7.61
Grupo Cibest	$28,223.37 billion	0.00	$764.13 million	$3.60	18.14

Shinhan Financial Group has higher earnings, but lower revenue than Grupo Cibest. Shinhan Financial Group is trading at a lower price-to-earnings ratio than Grupo Cibest, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings for Shinhan Financial Group and Grupo Cibest, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shinhan Financial Group	0	1	1	0	2.50
Grupo Cibest	3	6	0	0	1.67

Grupo Cibest has a consensus price target of $66.00, suggesting a potential upside of 1.07%. Given Grupo Cibest’s higher possible upside, analysts plainly believe Grupo Cibest is more favorable than Shinhan Financial Group.

Volatility and Risk

Shinhan Financial Group has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500. Comparatively, Grupo Cibest has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500.

Institutional & Insider Ownership

7.8% of Shinhan Financial Group shares are owned by institutional investors. 1.0% of Shinhan Financial Group shares are owned 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.

Dividends

Shinhan Financial Group pays an annual dividend of $1.86 per share and has a dividend yield of 2.7%. Grupo Cibest pays an annual dividend of $4.89 per share and has a dividend yield of 7.5%. Shinhan Financial Group pays out 20.6% of its earnings in the form of a dividend. Grupo Cibest pays out 135.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Shinhan Financial Group and Grupo Cibest’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shinhan Financial Group	19.89%	10.87%	0.85%
Grupo Cibest	8.41%	23.86%	2.56%

Summary

Shinhan Financial Group beats Grupo Cibest on 10 of the 16 factors compared between the two stocks.

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.

About Grupo Cibest

Bancolombia S.A., together with its subsidiaries, provides banking products and services in Colombia and internationally. The company operates through nine segments: Banking Colombia, Banking Panama, Banking El Salvador, Banking Guatemala, Trust, Investment Banking, Brokerage, International Banking, and All Other. It offers checking and savings accounts, money market accounts, time deposits, fixed term deposits, and investment products; trade financing, loans funded by domestic development banks, working capital loans, credit cards, personal and vehicle loans, payroll loans, and overdrafts; factoring; and financial and operating leasing services. The company provides hedging instruments, including futures, forwards, options, and swaps; and brokerage, investment advisory, and private banking services comprising selling and distributing equities, futures, foreign currencies, fixed income securities, mutual funds, and structured products. In addition, it offers cash management services; foreign currency and trade finance solutions; letters of credit and bills collection; insurance and bancassurance products; telephone and mobile phone banking services; and online and computer banking services. Further, the company provides project and acquisition finance, loan syndication, corporate loans, debt and equity capital markets, principal investments, mergers and acquisition, hedging strategy advisories, restructurings, and structured financing; mutual and pension funds, private equity funds, payment and corporate trust, and custody; internet-based trading platform; inter-bank lending and repurchase agreements; managing escrow accounts, and investment and real estate funds; credit cards; roadside and medical assistance services; and transportation, maintenance and remodeling, and outsourcing services, as well as provides technology services. Bancolombia S.A. was founded in 1875 and is headquartered in Medellín, Colombia.