Shinhan Financial Group (NYSE:SHG – Get Free Report) and United Bancorporation of Alabama (OTCMKTS:UBAB – Get Free Report) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.
Insider and Institutional Ownership
7.8% of Shinhan Financial Group shares are held by institutional investors. Comparatively, 5.5% of United Bancorporation of Alabama shares are held by institutional investors. 1.0% of Shinhan Financial Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Shinhan Financial Group and United Bancorporation of Alabama”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Shinhan Financial Group | $23.83 billion | 1.28 | $3.48 billion | $7.72 | 8.40 |
| United Bancorporation of Alabama | $89.83 million | 2.11 | $19.67 million | $6.39 | 9.70 |
Shinhan Financial Group has higher revenue and earnings than United Bancorporation of Alabama. Shinhan Financial Group is trading at a lower price-to-earnings ratio than United Bancorporation of Alabama, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Shinhan Financial Group and United Bancorporation of Alabama’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Shinhan Financial Group | 15.68% | 8.81% | 0.67% |
| United Bancorporation of Alabama | 23.84% | 14.78% | 1.51% |
Volatility and Risk
Shinhan Financial Group has a beta of 1.07, suggesting that its share price is 7% more volatile than the S&P 500. Comparatively, United Bancorporation of Alabama has a beta of 0.49, suggesting that its share price is 51% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Shinhan Financial Group and United Bancorporation of Alabama, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Shinhan Financial Group | 0 | 0 | 1 | 1 | 3.50 |
| United Bancorporation of Alabama | 0 | 1 | 0 | 0 | 2.00 |
Dividends
Shinhan Financial Group pays an annual dividend of $1.71 per share and has a dividend yield of 2.6%. United Bancorporation of Alabama pays an annual dividend of $1.42 per share and has a dividend yield of 2.3%. Shinhan Financial Group pays out 22.2% of its earnings in the form of a dividend. United Bancorporation of Alabama pays out 22.2% 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. Shinhan Financial Group is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Shinhan Financial Group beats United Bancorporation of Alabama on 11 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 United Bancorporation of Alabama
United Bancorporation of Alabama, Inc. operates as the bank holding company for United Bank that provides banking services. The company offers checking and savings accounts, certificates of deposit, individual retirement accounts, small business programs, business solutions, merchant services, and cash management services. It also provides various lending services, such as personal loans, business loans, lines of credit, and equipment loans; real estate loans for the agricultural community and working lines of credit; and overdraft services. In addition, the company offers debit cards, prepaid cards, Visa credit cards, gift cards, and safe deposit boxes. Further, it provides check cashing, convenience, remote deposit, mobile check deposit, personal storage compartments, Web payment options, insurance products, investment and brokerage, and online and mobile banking services. United Bancorporation of Alabama, Inc. was founded in 1904 and is based in Atmore, Alabama.
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