Critical Comparison: Standard Chartered (OTCMKTS:SCBFF) & Hanmi Financial (OTCMKTS:HAFC)

Hanmi Financial (NASDAQ:HAFC) and Standard Chartered (OTCMKTS:SCBFF) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, profitability, earnings and risk.

Profitability

This table compares Hanmi Financial and Standard Chartered’s net margins, return on equity and return on assets.

Valuation and Earnings

This table compares Hanmi Financial and Standard Chartered’s top-line revenue, earnings per share (EPS) and valuation.

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Hanmi Financial and Standard Chartered, as provided by MarketBeat.

Hanmi Financial currently has a consensus target price of $21.50, indicating a potential upside of 9.19%. Given Hanmi Financial’s stronger consensus rating and higher possible upside, equities analysts plainly believe Hanmi Financial is more favorable than Standard Chartered.

Risk & Volatility

Hanmi Financial has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500. Comparatively, Standard Chartered has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500.

Insider & Institutional Ownership

88.7% of Hanmi Financial shares are owned by institutional investors. 2.9% of Hanmi Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Hanmi Financial beats Standard Chartered on 9 of the 14 factors compared between the two stocks.

About Hanmi Financial

Hanmi Financial Corporation operates as the holding company for Hanmi Bank that provides business banking products and services in the United States. The company offers various deposit products, including noninterest-bearing checking accounts, interest-bearing checking and savings accounts, negotiable order of withdrawal accounts, money market accounts, and certificates of deposit. It also provides real estate loans, including commercial property, construction, and residential property loans; and commercial and industrial loans, such as commercial term loans and commercial lines of credit, as well as international finance, and trade services and products comprising letters of credit, and import and export financing. In addition, the company offers consumer loans that include automobile loans, secured and unsecured personal loans, home improvement loans, home equity lines of credit, unsecured lines of credit, and credit cards; and small business administration loans for business purposes, which comprise owner-occupied commercial real estate, business acquisitions, start-ups, franchise financing, working capital, improvements and renovations, inventory and equipment, and debt-refinancing, as well as equipment lease financing. As of January 24, 2019, it operated a network of 39 full-service branches and 9 loan production offices in California, Texas, Illinois, Virginia, New Jersey, New York, Colorado, Washington, and Georgia. The company was incorporated in 2000 and is headquartered in Los Angeles, California.

About Standard Chartered

Standard Chartered PLC., together with its subsidiaries, provides various banking products and services primarily in Asia, Africa, and the Middle East. The company operates through Corporate & Institutional Banking, Retail banking, Commercial Banking, and Private Banking segments. It offers retail products, such as deposits, savings, mortgages, credit cards, and personal loans; wealth management that include investments, portfolio management, insurance and advices, and planning services; and transaction banking services, such as cash management, payments and transactions, securities services, and trade financing products. The company also provides corporate finance products and services that include structured and project financing, strategic advising, and mergers and acquisitions; and financial market services, such as investment, risk management, and debt capital markets. It serves corporations, financial institutions, governments, high net worth individuals, small businesses, mid-sized companies, and individuals. The company operates through approximately 1,026 branches. Standard Chartered PLC was founded in 1853 and is headquartered in London, the United Kingdom.