Analyzing Standard Bank Group (OTCMKTS:SGBLY) and City (NASDAQ:CHCO)

City (NASDAQ:CHCO) and Standard Bank Group (OTCMKTS:SGBLY) are both financial services companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, risk, dividends, institutional ownership and profitability.

Profitability

This table compares City and Standard Bank Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
City	32.12%	17.42%	1.86%
Standard Bank Group	N/A	N/A	N/A

Dividends

City pays an annual dividend of $3.16 per share and has a dividend yield of 2.7%. Standard Bank Group pays an annual dividend of $4.08 per share and has a dividend yield of 29.9%. City pays out 39.7% of its earnings in the form of a dividend. Standard Bank Group pays out 40.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Valuation & Earnings

This table compares City and Standard Bank Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
City	$282.23 million	6.16	$114.36 million	$7.95	14.81
Standard Bank Group	N/A	N/A	N/A	$10.11	1.35

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

Analyst Ratings

This is a breakdown of recent ratings for City and Standard Bank Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
City	0	4	0	0	2.00
Standard Bank Group	0	0	0	0	N/A

City presently has a consensus price target of $106.75, suggesting a potential downside of 9.31%. Given City’s higher probable upside, analysts clearly believe City is more favorable than Standard Bank Group.

Institutional and Insider Ownership

72.4% of City shares are held by institutional investors. Comparatively, 0.0% of Standard Bank Group shares are held by institutional investors. 2.5% of City shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

City beats Standard Bank Group on 9 of the 11 factors compared between the two stocks.

About City

City Holding Company operates as a holding company for City National Bank of West Virginia that provides various banking, trust, and investment management, and other financial solutions in the United States. The company offers checking, savings, and money market accounts, as well as certificates of deposit and individual retirement accounts. It also provides commercial and industrial loans that consist of loans to corporate and other legal entity borrowers primarily in small to mid-size industrial and commercial companies; commercial real estate loans comprising commercial mortgages, which are secured by nonresidential and multi-family residential properties; residential real estate loans to consumers for the purchase or refinance of residence; first-priority home equity loans; home equity lines of credit; amortized home equity loans; consumer loans that are secured and unsecured by automobiles, boats, recreational vehicles, certificates of deposit, and other personal property; and demand deposit account overdrafts, as well as owner-occupied real estate and construction, land development, and lines of credit. In addition, the company offers mortgage banking services, including fixed and adjustable-rate mortgages, construction financing, land loans, production of conventional and government-insured mortgages, secondary marketing, and mortgage servicing. Further, it provides deposit services for commercial customers comprising treasury management, lockbox, and other cash management services; merchant credit card services; wealth management, trust, investment, and custodial services for commercial and individual customers; and corporate trust and institutional custody, financial and estate planning, and retirement plan services, as well as automated-teller-machine, interactive-teller-machine, mobile banking, interactive voice response systems, and credit and debit card services. City Holding Company was founded in 1957 and is headquartered in Charleston, West Virginia.

About Standard Bank Group

Standard Bank Group Limited provides banking and financial products and services in South Africa and internationally. It offers transactional accounts and digital banking platforms; personal and business lending solutions to enhance cash flow; finance for buying, building, and maintaining home; foreign exchange services; trusts and third-party administration accounts; workplace solutions, such as payroll and HR, financial planning, and employer value banking; merchant solutions, including point-of-sale, ecommerce, digital payments, payment processing, and small business support; and cash management services. The company also provides industry-specific solutions; trade point solutions; fleet solutions; and finance for commercial and personal vehicle, commercial property, and commercial asset, as well as disclosed and non-disclosed debtor. In addition, it offers card and payment solutions, such as digital wallet, prepaid digital cards, contactless payments, mobile payments, credit cards, and internet banking. Further, the company provides investment solutions comprises investment accounts, share trading, financial planning, forex investment, risk limitation, and wealth preservation; and green bonds, and social and sustainable bonds for housing and renewable energy. Additionally, it offers vehicle, life, property, health, and employee protection insurance; wills and estates insurance; commercial cyber insurance; and risk mitigation, insurance spend optimization, and strategic claim management solutions. The company serves individuals, businesses, institutions, and corporations. Standard Bank Group Limited was founded in 1862 and is headquartered in Johannesburg, South Africa.