SVB Financial Group (NASDAQ: SIVB) and OFG Bancorp (NYSE:OFG) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.
Risk and Volatility
SVB Financial Group has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500. Comparatively, OFG Bancorp has a beta of 1.76, meaning that its share price is 76% more volatile than the S&P 500.
89.2% of SVB Financial Group shares are owned by institutional investors. Comparatively, 97.1% of OFG Bancorp shares are owned by institutional investors. 0.7% of SVB Financial Group shares are owned by insiders. Comparatively, 2.6% of OFG Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares SVB Financial Group and OFG Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|SVB Financial Group||24.25%||12.83%||1.07%|
OFG Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 2.0%. SVB Financial Group does not pay a dividend. OFG Bancorp pays out 27.9% of its earnings in the form of a dividend. OFG Bancorp has raised its dividend for 4 consecutive years.
This is a breakdown of current ratings and price targets for SVB Financial Group and OFG Bancorp, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|SVB Financial Group||0||3||9||0||2.75|
SVB Financial Group currently has a consensus target price of $246.75, suggesting a potential downside of 8.85%. OFG Bancorp has a consensus target price of $12.67, suggesting a potential upside of 6.44%. Given OFG Bancorp’s higher possible upside, analysts clearly believe OFG Bancorp is more favorable than SVB Financial Group.
Earnings and Valuation
This table compares SVB Financial Group and OFG Bancorp’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|SVB Financial Group||$2.02 billion||7.08||$490.50 million||$9.21||29.39|
|OFG Bancorp||$424.33 million||1.23||$52.64 million||$0.86||13.84|
SVB Financial Group has higher revenue and earnings than OFG Bancorp. OFG Bancorp is trading at a lower price-to-earnings ratio than SVB Financial Group, indicating that it is currently the more affordable of the two stocks.
SVB Financial Group beats OFG Bancorp on 10 of the 17 factors compared between the two stocks.
About SVB Financial Group
SVB Financial Group is a financial services company, as well as a bank holding and a financial holding company. The Company’s segments include Global Commercial Bank, SVB Private Bank and SVB Capital. The Global Commercial Bank segment consists of the operations of its Commercial Bank, and of SVB Wine, SVB Analytics and its Debt Fund Investments. SVB Private Bank is the private banking division of the Bank, which provides a range of personal financial solutions for consumers. SVB Capital is the venture capital investment arm of SVB Financial Group, which focuses primarily on funds management. The Company, through its subsidiaries and divisions, offers a range of banking and financial products and services to clients across the United States. It offers services in the technology, life science/healthcare, private equity/venture capital and wine industries. The Bank and its subsidiaries, also offer asset management, private wealth management, brokerage and other investment services.
About OFG Bancorp
OFG Bancorp is a financial holding company. The Company is engaged in providing banking and financial services through its subsidiaries. The Company operates through three segments: Banking, Wealth Management and Treasury. The Company provides banking and financial services to its clients through a range of banking and financial solutions, including commercial, consumer, auto, and mortgage lending; checking and savings accounts; financial planning, insurance, financial service, and investment brokerage, and corporate and individual trust and retirement services. The Company provides these services through various subsidiaries, including a commercial bank, Oriental Bank; a securities broker-dealer, Oriental Financial Services Corp. (Oriental Financial Services); an insurance agency, Oriental Insurance, LLC (Oriental Insurance), and a retirement plan administrator, Oriental Pension Consultants, Inc. (OPC).
Receive News & Ratings for SVB Financial Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for SVB Financial Group and related companies with MarketBeat.com's FREE daily email newsletter.