Woori Financial Group (NYSE:WF) vs. Erste Group Bank (OTCMKTS:EBKDY) Critical Analysis

Erste Group Bank (OTCMKTS:EBKDY) and Woori Financial Group (NYSE:WF) 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, profitability, earnings, analyst recommendations, risk and valuation.

Insider & Institutional Ownership

0.2% of Erste Group Bank shares are held by institutional investors. Comparatively, 1.3% of Woori Financial Group shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Erste Group Bank and Woori Financial Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Erste Group Bank $10.87 billion 1.27 $1.65 billion $1.81 8.89
Woori Financial Group $9.18 billion 0.74 $1.62 billion $6.96 4.03

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

Risk & Volatility

Erste Group Bank has a beta of 1.49, indicating that its share price is 49% more volatile than the S&P 500. Comparatively, Woori Financial Group has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Erste Group Bank and Woori Financial Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Erste Group Bank 0 0 1 0 3.00
Woori Financial Group 0 0 1 0 3.00

Profitability

This table compares Erste Group Bank and Woori Financial Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Erste Group Bank 10.26% 4.23% 0.34%
Woori Financial Group 11.76% 5.45% 0.37%

Erste Group Bank Company Profile

Erste Group Bank AG provides a range of banking and other financial services to retail, corporate, real estate, and public sector customers in Austria, Central and Eastern Europe, and internationally. The company operates through Retail, Corporates, Group Markets, Asset/Liability Management and Local Corporate Center, Savings Banks, and Group Corporate Center segments. The company provides mortgage and consumer loans, investment products, current accounts, savings products, and credit cards, as well as cross selling products, such as leasing, insurance, and building society products. It also offers account management, payments, digital-banking, and cash logistics services; working capital finance, accounts receivable purchasing, factoring, and structured trade finance; letters of credit, documentary collections, guarantees, equity interests and investments, revolving export credits lines, customer financing, and export guarantee; investment, acquisition and leveraged, project, and commercial real estate finance; and corporate finance advisory and research services. In addition, the company offers trading and market services; trade execution, market making, and short-term liquidity management services; custody, depository, cash management, and trade and export finance services; loan syndication; and asset/liability management services. Further, the company provides discretionary portfolio management services and investment funds. As of December 31, 2019, it operated 2,373 branches. Erste Group Bank AG was founded in 1819 and is headquartered in Vienna, Austria.

Woori Financial Group Company Profile

Woori Financial Group Inc. engages in the banking, credit card, and investment banking businesses. It offers loans and deposits, and relevant services; credit card, cash services, card loans, and related services; and securities operation, sale of financial instruments, project financing, and other related activities. The company is also involved in the real estate, system software development and maintenance, financing, credit information, securities investment and others, asset securitization, and other service and credit financing businesses. It serves individual, business, and institutional customers. The company was founded in 1899 and is headquartered in Seoul, South Korea.

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