First United (NASDAQ:FUNC) and Shinhan Financial Group (NYSE:SHG) Head to Head Survey

First United (NASDAQ:FUNCGet Rating) and Shinhan Financial Group (NYSE:SHGGet Rating) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Valuation and Earnings

This table compares First United and Shinhan Financial Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
First United $78.18 million 1.52 $19.77 million $3.32 5.40
Shinhan Financial Group $14.57 billion 1.08 $3.62 billion $6.48 4.75

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

Risk and Volatility

First United has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, Shinhan Financial Group has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500.

Dividends

First United pays an annual dividend of $0.60 per share and has a dividend yield of 3.3%. Shinhan Financial Group pays an annual dividend of $0.48 per share and has a dividend yield of 1.6%. First United pays out 18.1% of its earnings in the form of a dividend. Shinhan Financial Group pays out 7.4% 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. First United has increased its dividend for 1 consecutive years. First United is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

29.1% of First United shares are owned by institutional investors. Comparatively, 7.6% of Shinhan Financial Group shares are owned by institutional investors. 4.2% of First United shares are owned by insiders. Comparatively, 1.0% of Shinhan Financial Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for First United and Shinhan Financial Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First United 0 0 1 0 3.00
Shinhan Financial Group 0 0 0 0 N/A

First United currently has a consensus target price of $28.00, indicating a potential upside of 56.08%. Given First United’s higher probable upside, research analysts plainly believe First United is more favorable than Shinhan Financial Group.

Profitability

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

Net Margins Return on Equity Return on Assets
First United 28.29% 17.41% 1.36%
Shinhan Financial Group 20.66% 8.51% 0.65%

Summary

First United beats Shinhan Financial Group on 12 of the 16 factors compared between the two stocks.

First United Company Profile (Get Rating)

First United Corporation operates as the bank holding company for First United Bank & Trust that provides various retail and commercial banking services to businesses and individuals. The company offers various deposit products, including checking accounts, savings and money market accounts, regular and individual retirement accounts (IRA) certificates of deposit, Christmas savings accounts, college savings accounts, and health savings accounts; Certificate of Deposit Account Registry Service program and Insured Cash Sweep program to municipalities, businesses, and consumers; and commercial customers packages, which include treasury management, cash sweep, and various checking opportunities. It also provides loans, such as commercial loans secured by real estate, commercial equipment, vehicles, or other assets of the borrower; commercial real estate loans for residential and commercial development, agricultural purpose properties, and service industry buildings; residential mortgage loans; home equity lines of credit; residential real estate construction loans; and indirect and direct auto loans, student loans, term loans, and other secured and unsecured lines of credit and term loans. In addition, the company offers various trust services, including personal trust, investment agency accounts, charitable trusts, retirement accounts that consist of IRA roll-overs, 401(k) accounts and defined benefit plans, estate administration, and estate planning services; insurance products; brokerage services; and safe deposit and night depository facilities. It operates 26 banking offices, one customer care center, and 34 automated teller machines in Allegany, Frederick, Garrett, and Washington counties in Maryland; and in Mineral, Berkeley, Monongalia, and Harrison counties in West Virginia. First United Corporation was founded in 1900 and is headquartered in Oakland, Maryland.

Shinhan Financial Group Company Profile (Get Rating)

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, Life 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; 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 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. As of December 31, 2021, it operated a network of 784 service centers; 5,234 ATMs; 7 cash dispensers; and 85 digital kiosks. Shinhan Financial Group Co., Ltd. was founded in 1982 and is headquartered in Seoul, South Korea.

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