Credicorp Ltd. (BAP) vs Shinhan Financial Group Co Ltd (SHG)

Credicorp Ltd. and Shinhan Financial Group Co Ltd are both Banks Regional companies. Shinhan Financial Group Co Ltd is the larger, with a market value of $37.0B against $30.4B — 1.2× the size. Shinhan Financial Group Co Ltd trades at the lower P/E: 10.9× against 14.3×. Shinhan Financial Group Co Ltd grew revenue faster over the last twelve months: 12.1% against 12.1%. Credicorp Ltd. has the higher net margin (26.3% vs 14.2%) and the higher return on invested capital (173.4% vs 4.47%). Both pay a dividend; Credicorp Ltd. yields more (5.22% vs 5.03%). Across the 20 metrics below, Credicorp Ltd. leads on 11 and Shinhan Financial Group Co Ltd on 9.

Valuation

Metric BAP SHG Banks Regional median
P/E 14.33 10.88 12.15
P/S 3.75 1.47 2.37
P/B 2.71 0.87 1.21
Price to free cash flow 4.82 2.56 10.80
EV/EBITDA n/m n/m —
EV/Sales 2.51 2.65 2.27
Earnings yield 6.98% 9.19% 8.11%
Free cash flow yield 20.77% 39.06% 8.98%

Profitability

Metric BAP SHG Banks Regional median
Gross margin 81.63% 56.27% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 26.34% 14.18% 18.66%
Free cash flow margin 0.00% 57.45% 21.18%
Return on equity 20.60% 8.55% 10.64%
Return on assets 2.86% 0.66% 1.13%
Return on invested capital 173.44% 4.47% 8.33%

Growth

Metric BAP SHG Banks Regional median
Revenue growth (TTM) 12.06% 12.11% 6.61%
EPS growth (last fiscal year) 32.41% 11.63% —
Revenue growth, 5-year CAGR 9.83% 11.03% 12.30%
Net income growth, 5-year CAGR 81.29% 4.11% 9.71%

Health

Metric BAP SHG Banks Regional median
Debt to equity 0.38 1.45 0.22
Current ratio 1.06 0.98 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric BAP SHG Banks Regional median
Dividend yield 5.22% 5.03% 3.75%
Payout ratio 0.40 0.27 0.27

Size

Metric BAP SHG Banks Regional median
Market cap 30.42b 36.95b 921.07m

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