Head to Head Contrast: OFG Bancorp (NYSE:OFG) & Citizens Financial Group (NYSE:CFG)

Citizens Financial Group (NYSE:CFG) and OFG Bancorp (NYSE:OFG) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, risk, valuation, institutional ownership and dividends.

Earnings & Valuation

This table compares Citizens Financial Group and OFG Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Citizens Financial Group	$12.36 billion	1.93	$1.51 billion	$3.57	15.56
OFG Bancorp	$873.53 million	2.04	$198.17 million	$4.40	9.20

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

Volatility and Risk

Citizens Financial Group has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500. Comparatively, OFG Bancorp has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500.

Dividends

Citizens Financial Group pays an annual dividend of $1.84 per share and has a dividend yield of 3.3%. OFG Bancorp pays an annual dividend of $1.20 per share and has a dividend yield of 3.0%. Citizens Financial Group pays out 51.5% of its earnings in the form of a dividend. OFG Bancorp pays out 27.3% 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. OFG Bancorp has increased its dividend for 5 consecutive years.

Profitability

This table compares Citizens Financial Group and OFG Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Citizens Financial Group	14.17%	7.48%	0.78%
OFG Bancorp	22.26%	15.18%	1.67%

Analyst Recommendations

This is a summary of current recommendations and price targets for Citizens Financial Group and OFG Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Citizens Financial Group	0	2	17	2	3.00
OFG Bancorp	0	2	5	0	2.71

Citizens Financial Group currently has a consensus price target of $56.57, indicating a potential upside of 1.85%. OFG Bancorp has a consensus price target of $47.17, indicating a potential upside of 16.54%. Given OFG Bancorp’s higher probable upside, analysts clearly believe OFG Bancorp is more favorable than Citizens Financial Group.

Insider and Institutional Ownership

94.9% of Citizens Financial Group shares are held by institutional investors. Comparatively, 92.7% of OFG Bancorp shares are held by institutional investors. 0.7% of Citizens Financial Group shares are held by company insiders. Comparatively, 3.1% of OFG Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

OFG Bancorp beats Citizens Financial Group on 10 of the 18 factors compared between the two stocks.

About Citizens Financial Group

Citizens Financial Group, Inc. operates as the bank holding company that provides retail and commercial banking products and services to individuals, small businesses, middle-market companies, corporations, and institutions in the United States. The company operates in two segments, Consumer Banking and Commercial Banking. The Consumer Banking segment offers deposit products, mortgage and home equity lending products, credit cards, business loans, wealth management, and investment services; and auto, education, and point-of-sale finance loans, as well as digital deposit products. This segment serves its customers through telephone service centers, as well as through its online and mobile platforms. The Commercial Banking segment provides various financial products and solutions, including lending and leasing, deposit and treasury management services, foreign exchange, and interest rate and commodity risk management solutions, as well as syndicated loans, corporate finance, mergers and acquisitions, and debt and equity capital markets services. This segment serves corporate banking, healthcare, technology, asset finance, franchise finance, leasing, asset-based lending, commercial real estate, mid-corporate, and private equity sponsor industries. The company was formerly known as RBS Citizens Financial Group, Inc. and changed its name to Citizens Financial Group, Inc. in April 2014. Citizens Financial Group, Inc. was founded in 1828 and is headquartered in Providence, Rhode Island.

About OFG Bancorp

OFG Bancorp, a financial holding company, provides a range of banking and financial services. It operates through three segments: Banking, Wealth Management, and Treasury. The company offers checking and savings accounts, and individual retirement accounts; certificate of deposits, as well as time deposit products; commercial, consumer, auto leasing, and mortgage lending services; credit cards; cash management; financial planning and insurance services; and corporate and individual trust, and retirement services. In addition, it provides securities brokerage and investment advisory services, including various investment alternatives, such as tax-advantaged fixed income securities, mutual funds, stocks, and bonds to retail and institutional clients; and separately-managed accounts and mutual fund asset allocation programs. Further, the company engages in the insurance agency and reinsurance businesses; administration and servicing of retirement plans; and various treasury-related functions with an investment portfolio consisting of mortgage-backed securities, obligations of U.S. government sponsored agencies, and U.S. Treasury securities and money market instruments. Additionally, it offers money management and investment banking services; and engages in the asset/liability management activities, such as purchases and sales of investment securities, interest rate risk management, derivatives, and borrowings. The company provides investment brokerage, transactional, international trade financing, residential mortgage, and consumer finance services. OFG Bancorp was founded in 1964 and is headquartered in San Juan, Puerto Rico.