PennyMac Financial Services (PFSI) Competitors

Shinhan Financial Group (NYSE:SHG) and PennyMac Financial Services (NYSE:PFSI) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, community ranking, risk, valuation, profitability, dividends, analyst recommendations, media sentiment and institutional ownership.

Is SHG or PFSI a better dividend stock?

Shinhan Financial Group pays an annual dividend of $1.22 per share and has a dividend yield of 2.8%. PennyMac Financial Services pays an annual dividend of $1.20 per share and has a dividend yield of 1.1%. Shinhan Financial Group pays out 20.1% of its earnings in the form of a dividend. PennyMac Financial Services pays out 41.7% 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. Shinhan Financial Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Does the MarketBeat Community prefer SHG or PFSI?

PennyMac Financial Services received 124 more outperform votes than Shinhan Financial Group when rated by MarketBeat users. Likewise, 63.84% of users gave PennyMac Financial Services an outperform vote while only 63.51% of users gave Shinhan Financial Group an outperform vote.

Company	Underperform	Outperform
Shinhan Financial Group	Outperform Votes 268 63.51%	Underperform Votes 154 36.49%
PennyMac Financial Services	Outperform Votes 392 63.84%	Underperform Votes 222 36.16%

Which has better valuation & earnings, SHG or PFSI?

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

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shinhan Financial Group	$25.42B	0.87	$3.49B	$6.07	7.15
PennyMac Financial Services	$1.40B	4.15	$144.66M	$2.88	39.49

Is SHG or PFSI more profitable?

PennyMac Financial Services has a net margin of 13.13% compared to Shinhan Financial Group's net margin of 12.23%. PennyMac Financial Services' return on equity of 12.69% beat Shinhan Financial Group's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Shinhan Financial Group	12.23%	7.16%	0.58%
PennyMac Financial Services	13.13%	12.69%	2.30%

Do institutionals & insiders believe in SHG or PFSI?

7.8% of Shinhan Financial Group shares are held by institutional investors. Comparatively, 57.9% of PennyMac Financial Services shares are held by institutional investors. 1.0% of Shinhan Financial Group shares are held by insiders. Comparatively, 16.6% of PennyMac Financial Services shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Does the media prefer SHG or PFSI?

In the previous week, PennyMac Financial Services had 7 more articles in the media than Shinhan Financial Group. MarketBeat recorded 10 mentions for PennyMac Financial Services and 3 mentions for Shinhan Financial Group. Shinhan Financial Group's average media sentiment score of 1.40 beat PennyMac Financial Services' score of 0.21 indicating that Shinhan Financial Group is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Shinhan Financial Group	3 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
PennyMac Financial Services	4 Very Positive mention(s)	3 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral

Which has more volatility & risk, SHG or PFSI?

Shinhan Financial Group has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500. Comparatively, PennyMac Financial Services has a beta of 1.77, indicating that its stock price is 77% more volatile than the S&P 500.

Do analysts rate SHG or PFSI?

PennyMac Financial Services has a consensus target price of $107.17, indicating a potential downside of 5.76%. Given PennyMac Financial Services' higher possible upside, analysts clearly believe PennyMac Financial Services is more favorable than Shinhan Financial Group.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shinhan Financial Group	0 Sell rating(s)	0 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	3.00
PennyMac Financial Services	0 Sell rating(s)	2 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	2.67

Summary

PennyMac Financial Services beats Shinhan Financial Group on 13 of the 20 factors compared between the two stocks.