Fifth Third Bancorp (FITB) vs Shinhan Financial Group Co Ltd (SHG)

Fifth Third Bancorp and Shinhan Financial Group Co Ltd are both Banks Regional companies. Fifth Third Bancorp is the larger, with a market value of $46.7B against $37.0B — 1.3× the size. Shinhan Financial Group Co Ltd trades at the lower P/E: 10.9× against 17.6×. Fifth Third Bancorp grew revenue faster over the last twelve months: 14.4% against 12.1%. Fifth Third Bancorp has the higher net margin (14.8% vs 14.2%) and the higher return on invested capital (7.05% vs 4.47%). Both pay a dividend; Shinhan Financial Group Co Ltd yields more (5.03% vs 4.28%). Across the 20 metrics below, Shinhan Financial Group Co Ltd leads on 11 and Fifth Third Bancorp on 9.

Valuation

Metric FITB SHG Banks Regional median
P/E 17.60 10.88 12.15
P/S 3.19 1.47 2.37
P/B 1.47 0.87 1.21
Price to free cash flow 16.37 2.56 10.80
EV/EBITDA n/m n/m —
EV/Sales 2.66 2.65 2.27
Earnings yield 5.68% 9.19% 8.11%
Free cash flow yield 6.11% 39.06% 8.98%

Profitability

Metric FITB SHG Banks Regional median
Gross margin 72.22% 56.27% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 14.78% 14.18% 18.66%
Free cash flow margin 19.47% 57.45% 21.18%
Return on equity 8.57% 8.55% 10.64%
Return on assets 0.86% 0.66% 1.13%
Return on invested capital 7.05% 4.47% 8.33%

Growth

Metric FITB SHG Banks Regional median
Revenue growth (TTM) 14.41% 12.11% 6.61%
EPS growth (last fiscal year) 12.42% 11.63% —
Revenue growth, 5-year CAGR 9.02% 11.03% 12.30%
Net income growth, 5-year CAGR 12.42% 4.11% 9.71%

Health

Metric FITB SHG Banks Regional median
Debt to equity 0.51 1.45 0.22
Current ratio 0.84 0.98 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric FITB SHG Banks Regional median
Dividend yield 4.28% 5.03% 3.75%
Payout ratio 0.38 0.27 0.27

Size

Metric FITB SHG Banks Regional median
Market cap 46.67b 36.95b 921.07m

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