SHG vs. SMFG: Shinhan Financial vs. Sumitomo Mitsui Financial Stock Comparison

Company Profile

Shinhan Financial (SHG) and Sumitomo Mitsui Financial (SMFG) are both classified in the Diversified Banks sub-industry within the broader Banks industry, placing them in the closest GICS peer bucket.

Both Shinhan Financial (SHG) and Sumitomo Mitsui Financial (SMFG) trade as ADRs — their core financials are comparable, but keep FX, depositary-program fees, and dividend withholding in view for each.

Price Performance

Cumulative Growth

Trailing Returns

Calendar-Year Returns

Performance Metrics

Risk Profile

Drawdown History

Return Distribution

Risk Metrics

Risk-Adjusted Performance

Risk-Return Positioning

Risk-Adjusted Metrics

Profitability

Both Shinhan Financial (SHG) at 8.94% and Sumitomo Mitsui Financial (SMFG) at 8.57% produce bottom-quartile ROE versus peers, pointing to weaker profit generation on shareholders’ equity.

Sumitomo Mitsui Financial (SMFG) at 27.82% keeps about the industry-typical share of revenue as profit, while Shinhan Financial (SHG) at 26.15% retains only a bottom-quartile share.

Neither side reports a meaningful operating margin: for Shinhan Financial (SHG) in Banks and Sumitomo Mitsui Financial (SMFG) in Banks, funding costs are part of the core business, so net margin and ROE are the cleaner profitability reads.

Profitability Metrics

Growth

Sumitomo Mitsui Financial (SMFG) at 14.32% is around its peer norm for revenue growth, while Shinhan Financial (SHG) at 4.66% drops into the bottom quartile, signaling weaker demand or pricing momentum.

Sumitomo Mitsui Financial (SMFG) at 36.62% sits in the top EPS growth quartile, while Shinhan Financial (SHG) at 16.24% is closer to the peer norm — faster per-share earnings growth for SMFG.

Growth Metrics

Financial Strength

current ratio doesn’t apply on either side: Shinhan Financial (SHG) in Banks and Sumitomo Mitsui Financial (SMFG) in Banks both report balance sheets without a current/non-current split, so their short-term liquidity is better judged through regulatory and funding measures.

debt-to-equity ratio is set aside for both: Shinhan Financial (SHG) in Banks and Sumitomo Mitsui Financial (SMFG) in Banks run businesses where balance-sheet leverage is part of the model, so capital-adequacy and funding measures are the better gauges of balance-sheet risk.

Financial Strength Metrics

Dividends

Both Shinhan Financial (SHG) at 4,638.28% and Sumitomo Mitsui Financial (SMFG) at 334.33% yield above their industries’ entire benchmark ranges — high enough that dividend safety, not income, becomes the first question.

Both Shinhan Financial (SHG) at 25.22% and Sumitomo Mitsui Financial (SMFG) at 33.62% keep payout ratio within their industries’ typical mid-ranges — dividend policies that share earnings without consuming too much of them.

Dividend Metrics

Valuation

Shinhan Financial (SHG) at 7.98 sits in the cheaper P/E ratio quartile, while Sumitomo Mitsui Financial (SMFG) at 13.47 is closer to its industry’s usual earnings multiple — a discount for SHG, though growth and earnings durability still matter.

P/S ratio is set aside for both Shinhan Financial (SHG) in Banks and Sumitomo Mitsui Financial (SMFG) in Banks: without a conventional revenue line, pricing per dollar of sales isn’t meaningful, and book- or earnings-based multiples make the better comparison.

Shinhan Financial (SHG) at 0.66 sits in the lower P/B ratio quartile against book while Sumitomo Mitsui Financial (SMFG) at 1.45 is valued near its industry’s middle — SHG is cheaper on assets, though weigh it against ROE and asset quality.

Valuation Metrics