SMFG Stock Overview

Investors looking at foreign bank stocks may have come across Sumitomo Mitsui (SMFG) and HDFC Bank (HDB). The question is, which of these two stocks is more appealing for value investors?

Sumitomo Mitsui (SMFG) could see an increase in its stock price due to rising confidence in its earnings potential, as indicated by its upgrade to a Zacks Rank #1 (Strong Buy).

Investors looking at foreign bank stocks may have come across Sumitomo Mitsui (SMFG) and HDFC Bank (HDB). The question is, which of these two stocks provides better value for money for investors at this time?

Investors who focus on foreign bank stocks probably know about Sumitomo Mitsui (SMFG) and ICICI Bank Limited (IBN). However, which of these two banks is the better choice for those seeking undervalued stocks?

Sumitomo Mitsui (SMFG) could be a solid choice for shorter-term investors looking to capitalize on the recent price trend in fundamentally sound stocks. It is one of the many stocks that passed through our shorter-term trading strategy-based screen.

Does Sumitomo Mitsui (SMFG) have what it takes to be a top stock pick for momentum investors? Let's find out.

Sumitomo Mitsui (SMFG) considers further widening its alliance with Jefferies into Asia to compete with its rivals. Also, the bank aims for three successive years of record net profit.

Japan's asset management industry has favorable growth prospects, and this puts a leading financial services player like Sumitomo Mitsui Financial in a good position to increase its future fee income. SMFG's net interest income growth outlook is positive, considering the reasonably high probability of Japan initiating a rate hike in the near term. My investment rating for SMFG is upgraded to a Buy, as I think that the stock doesn't deserve to trade at a significant discount to book value.

Sumitomo Mitsui Financial Group, a Japanese bank with over $2 trillion in assets, offers potential diversification due to its high exposure to Japan, but its lower than average dividend yield and fair valuation make it less attractive for investment. The bank has a conservative lending approach and a low-risk balance sheet, with a sizable equity portfolio of Japanese equities that it plans to reduce to decrease earnings volatility. Despite its stable profile and conservative risk culture, Sumitomo's financial performance has been relatively stable over the past few years due to low growth prospects. Its return on equity ratio is only 6.5%, a relatively low level of profitability.