Analyzing Commerzbank (OTCMKTS:CRZBY) & Sumitomo Mitsui Financial Group (NYSE:SMFG)

Commerzbank (OTCMKTS:CRZBY) and Sumitomo Mitsui Financial Group (NYSE:SMFG) are both large-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.

Profitability

This table compares Commerzbank and Sumitomo Mitsui Financial Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Commerzbank	11.55%	7.74%	0.47%
Sumitomo Mitsui Financial Group	15.68%	10.57%	0.52%

Dividends

Commerzbank pays an annual dividend of $0.52 per share and has a dividend yield of 1.2%. Sumitomo Mitsui Financial Group pays an annual dividend of $0.48 per share and has a dividend yield of 2.1%. Commerzbank pays out 20.6% of its earnings in the form of a dividend. Sumitomo Mitsui Financial Group pays out 35.8% 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.

Earnings & Valuation

This table compares Commerzbank and Sumitomo Mitsui Financial Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Commerzbank	$26.54 billion	1.73	$2.97 billion	$2.53	16.56
Sumitomo Mitsui Financial Group	$71.68 billion	2.02	$10.45 billion	$1.34	16.96

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

Insider and Institutional Ownership

3.9% of Sumitomo Mitsui Financial Group shares are owned by institutional investors. 0.1% of Sumitomo Mitsui Financial Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Commerzbank and Sumitomo Mitsui Financial Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Commerzbank	0	4	5	1	2.70
Sumitomo Mitsui Financial Group	0	1	0	2	3.33

Volatility & Risk

Commerzbank has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500. Comparatively, Sumitomo Mitsui Financial Group has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500.

Summary

Sumitomo Mitsui Financial Group beats Commerzbank on 12 of the 16 factors compared between the two stocks.

About Commerzbank

Commerzbank AG provides banking and capital market products and services to private and small business customers, corporate, financial service providers, and institutional clients in Germany, rest of Europe, the Americas, Asia, and internationally. It operates through two segments, Private and Small-Business Customers, and Corporate Clients. The company offers saving, checking, business, and current accounts; term deposits; pension; credit and debit cards; payment solutions; overdraft services; various loans; and insurance products. It also provides trade securities; treasury management; corporate financing; real estate financing; financing advisory; merger and acquisition; foreign trade; trade financing; asset and risk management; and online banking, as well as wealth management services. Commerzbank AG was founded in 1870 and is headquartered in Frankfurt am Main, Germany.

About Sumitomo Mitsui Financial Group

Sumitomo Mitsui Financial Group, Inc., together with its subsidiaries, provides banking, leasing, securities, credit card, and consumer finance services in Japan, the Americas, Europe, the Middle East, Asia, and Oceania. It operates through Wholesale Business Unit, Retail Business Unit, Global Business Unit, and Global Markets Business Unit segments. The company was incorporated in 2002 and is headquartered in Tokyo, Japan.