Head-To-Head Comparison: First Bancshares (NASDAQ:FBMS) & Shinhan Financial Group (NYSE:SHG)

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

Volatility and Risk

First Bancshares has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500. Comparatively, Shinhan Financial Group has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500.

Earnings and Valuation

This table compares First Bancshares and Shinhan Financial Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
First Bancshares $214.22 million 3.87 $64.17 million $2.93 11.77
Shinhan Financial Group $14.57 billion 0.96 $3.62 billion $6.92 3.94

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

Analyst Ratings

This is a summary of current recommendations for First Bancshares and Shinhan Financial Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
First Bancshares 0 0 3 0 3.00
Shinhan Financial Group 0 0 0 0 N/A

First Bancshares currently has a consensus target price of $30.00, suggesting a potential downside of 13.04%. Given First Bancshares’ higher probable upside, analysts plainly believe First Bancshares is more favorable than Shinhan Financial Group.

Profitability

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

Net Margins Return on Equity Return on Assets
First Bancshares 27.77% 10.97% 1.08%
Shinhan Financial Group 22.61% 9.52% 0.71%

Dividends

First Bancshares pays an annual dividend of $0.80 per share and has a dividend yield of 2.3%. Shinhan Financial Group pays an annual dividend of $0.84 per share and has a dividend yield of 3.1%. First Bancshares pays out 27.3% of its earnings in the form of a dividend. Shinhan Financial Group pays out 12.1% 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 Bancshares has increased its dividend for 5 consecutive years. Shinhan Financial Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

55.7% of First Bancshares shares are held by institutional investors. Comparatively, 2.8% of Shinhan Financial Group shares are held by institutional investors. 4.7% of First Bancshares shares are held by insiders. Comparatively, 1.0% of Shinhan Financial Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

First Bancshares beats Shinhan Financial Group on 11 of the 16 factors compared between the two stocks.

About First Bancshares

(Get Rating)

The First Bancshares, Inc. operates as the bank holding company for The First, A National Banking Association that provides general commercial and retail banking services. The company operates through three segments: Commercial/Retail Bank, Mortgage Banking Division, and Holding Company. It offers deposit services, including checking, NOW, and savings accounts; other time deposits, such as daily money market accounts and longer-term certificates of deposit; and individual retirement and health savings accounts. The company also provides commercial loans comprising secured and unsecured loans for working capital, business expansion, and purchase of equipment and machinery; consumer loans consisting of equity lines of credit, as well as secured and unsecured loans for financing automobiles, home improvements, education, and personal investments; and real estate construction and acquisition loans. In addition, it originates loans to purchase existing residential homes or construct new homes, and to refinance existing mortgages; and provides financial and wealth management services. Further, the company offers internet banking services, automated teller machines, voice response telephone inquiry services, commercial sweep accounts, cash management services, safe deposit boxes, merchant, mobile deposit, direct deposit of payroll and social security checks, automatic drafts for various accounts, and credit card services. It primarily serves small to medium-sized businesses, professional concerns, individuals, associations, organizations, and governmental authorities. As of December 31, 2021, the company operated 90 locations in Mississippi, Alabama, Florida, Georgia, and Louisiana. The First Bancshares, Inc. was incorporated in 1995 and is headquartered in Hattiesburg, Mississippi.

About Shinhan Financial Group

(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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