Shinhan Financial Group (NYSE:SHG) vs. Grupo Financiero Galicia (NASDAQ:GGAL) Head-To-Head Review

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

Dividends

Grupo Financiero Galicia pays an annual dividend of $1.97 per share and has a dividend yield of 4.7%. Shinhan Financial Group pays an annual dividend of $1.86 per share and has a dividend yield of 2.7%. Grupo Financiero Galicia pays out 99.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Shinhan Financial Group pays out 20.6% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Grupo Financiero Galicia and Shinhan Financial Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grupo Financiero Galicia	$10.56 billion	0.64	$170.02 million	$1.98	21.19
Shinhan Financial Group	$23.83 billion	1.37	$3.48 billion	$9.01	7.61

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Grupo Financiero Galicia and Shinhan Financial Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grupo Financiero Galicia	2	2	3	1	2.38
Shinhan Financial Group	0	1	1	0	2.50

Grupo Financiero Galicia currently has a consensus price target of $65.50, suggesting a potential upside of 56.10%. Given Grupo Financiero Galicia’s higher probable upside, analysts plainly believe Grupo Financiero Galicia is more favorable than Shinhan Financial Group.

Institutional and Insider Ownership

7.8% of Shinhan Financial Group shares are owned by institutional investors. 1.0% of Shinhan Financial Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Grupo Financiero Galicia has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500. Comparatively, Shinhan Financial Group has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500.

Profitability

This table compares Grupo Financiero Galicia and Shinhan Financial Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grupo Financiero Galicia	7.13%	18.96%	3.47%
Shinhan Financial Group	19.89%	10.87%	0.85%

Summary

Shinhan Financial Group beats Grupo Financiero Galicia on 9 of the 17 factors compared between the two stocks.

About Grupo Financiero Galicia

Grupo Financiero Galicia S.A., a financial service holding company, provides various financial products and services to individuals and companies in Argentina. The company operates through Banks, NaranjaX, Insurance, and Other Businesses segments. It also offers personal loans; express and mortgage loans; pledge and credit card loans; credit and debit cards; and online banking services, as well as savings, deposits, and checking accounts related services. In addition, the company offers financing products; consumer finance and digital banking services; electronic check; global custody services; Fima funds; financial and stock market services to individuals, companies, and financial institutions; foreign trade services; and capital market and investment banking products that include debt securities, short-term securities, and financial trusts. Further, it provides robbery, personal accident, life collective, home, life, integral, pet, surety, and technical insurance products. Additionally, the company offers private banking services to high net worth individuals; and operates digital investment platform. Grupo Financiero Galicia S.A. was founded in 1905 and is based in Buenos Aires, Argentina.

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.