CIMB Group Holdings Berhad (OTCMKTS:CIMDF) and OFG Bancorp (NYSE:OFG) Head to Head Review

CIMB Group Holdings Berhad (OTCMKTS:CIMDF) and OFG Bancorp (NYSE:OFG) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, earnings, profitability, risk and dividends.

Analyst Recommendations

This is a summary of recent ratings and target prices for CIMB Group Holdings Berhad and OFG Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CIMB Group Holdings Berhad	0	0	0	0	0.00
OFG Bancorp	0	4	2	1	2.57

OFG Bancorp has a consensus price target of $55.20, indicating a potential upside of 5.69%. Given OFG Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe OFG Bancorp is more favorable than CIMB Group Holdings Berhad.

Profitability

This table compares CIMB Group Holdings Berhad and OFG Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CIMB Group Holdings Berhad	N/A	N/A	N/A
OFG Bancorp	24.08%	15.92%	1.80%

Earnings & Valuation

This table compares CIMB Group Holdings Berhad and OFG Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CIMB Group Holdings Berhad	N/A	N/A	N/A	$0.49	3.41
OFG Bancorp	$902.28 million	2.45	$205.10 million	$5.08	10.28

OFG Bancorp has higher revenue and earnings than CIMB Group Holdings Berhad. CIMB Group Holdings Berhad is trading at a lower price-to-earnings ratio than OFG Bancorp, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

11.9% of CIMB Group Holdings Berhad shares are held by institutional investors. Comparatively, 92.7% of OFG Bancorp shares are held by institutional investors. 1.2% of OFG Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

CIMB Group Holdings Berhad pays an annual dividend of $0.20 per share and has a dividend yield of 12.3%. OFG Bancorp pays an annual dividend of $1.40 per share and has a dividend yield of 2.7%. CIMB Group Holdings Berhad pays out 41.8% of its earnings in the form of a dividend. OFG Bancorp pays out 27.6% 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. OFG Bancorp has raised its dividend for 5 consecutive years.

Summary

OFG Bancorp beats CIMB Group Holdings Berhad on 14 of the 15 factors compared between the two stocks.

About CIMB Group Holdings Berhad

CIMB Group Holdings Berhad provides various banking products and services in Malaysia and internationally. The Consumer Banking segment offers conventional and Islamic financial products and services, such as residential and non-residential property loans, secured personal loans, motor vehicle financing, credit cards, unsecured personal financing, wealth management, bancassurance, remittance and foreign exchange, deposits, and internet banking services to individual customers. The Commercial Banking segment provides banking credit facilities, trade financing, cash management, online business banking platform, remittance, and foreign exchange, as well as general deposit products to small and medium-scale enterprises, and mid-sized corporations. The Wholesale Banking segment offers client coverage marketing and delivering solutions; financial advisory services on issuance of equity and equity-linked products, debt restructuring, initial public offerings, secondary offerings, and general corporate advisory; conventional and Islamic funding solutions covering trade, working capital line, capital expenditure, leveraging, merger and acquisition, leveraged, and project financing products; and holistic funding solutions, including cash management, trade finance, foreign exchange, custody and corporate loans, derivatives, structured products, and debt capital. This segment also engages in the treasury activities and services comprising foreign exchange, money market, derivatives, and capital market trading instruments; transaction banking and broking services; and wealth management solutions, as well as investment, securities financing, and trust services. CIMB Group Holdings Berhad was founded in 1924 and is headquartered in Kuala Lumpur, Malaysia.

About OFG Bancorp

OFG Bancorp, a financial holding company, provides a range of banking and financial services. It operates through three segments: Banking, Wealth Management, and Treasury. The company offers checking and savings accounts, and individual retirement accounts; certificate of deposits, as well as time deposit products; commercial, consumer, auto leasing, and mortgage lending services; credit cards; cash management; financial planning and insurance services; and corporate and individual trust, and retirement services. In addition, it provides securities brokerage and investment advisory services, including various investment alternatives, such as tax-advantaged fixed income securities, mutual funds, stocks, and bonds to retail and institutional clients; and separately-managed accounts and mutual fund asset allocation programs. Further, the company engages in the insurance agency and reinsurance businesses; administration and servicing of retirement plans; and various treasury-related functions with an investment portfolio consisting of mortgage-backed securities, obligations of U.S. government sponsored agencies, and U.S. Treasury securities and money market instruments. Additionally, it offers money management and investment banking services; and engages in the asset/liability management activities, such as purchases and sales of investment securities, interest rate risk management, derivatives, and borrowings. The company provides investment brokerage, transactional, international trade financing, residential mortgage, and consumer finance services. OFG Bancorp was founded in 1964 and is headquartered in San Juan, Puerto Rico.