Reviewing Shinsei Bank (OTCMKTS:SKLKY) & OFG Bancorp (NYSE:OFG)

Shinsei Bank (OTCMKTS:SKLKY) and OFG Bancorp (NYSE:OFG) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.

Institutional & Insider Ownership

92.7% of OFG Bancorp shares are owned by institutional investors. 1.2% of OFG Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Shinsei Bank and OFG Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shinsei Bank	N/A	N/A	N/A	N/A	N/A
OFG Bancorp	$902.28 million	2.45	$205.10 million	$5.08	10.28

OFG Bancorp has higher revenue and earnings than Shinsei Bank.

Analyst Ratings

This is a summary of current recommendations for Shinsei Bank and OFG Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shinsei Bank	0	0	0	0	0.00
OFG Bancorp	0	4	2	1	2.57

OFG Bancorp has a consensus target price of $55.20, suggesting a potential upside of 5.69%. Given OFG Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe OFG Bancorp is more favorable than Shinsei Bank.

Profitability

This table compares Shinsei Bank and OFG Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shinsei Bank	N/A	N/A	N/A
OFG Bancorp	24.08%	15.92%	1.80%

Summary

OFG Bancorp beats Shinsei Bank on 10 of the 10 factors compared between the two stocks.

About Shinsei Bank

Shinsei Bank, Limited provides various banking and financial products and services to individual customers, corporations, public-sector entities, and financial institutions in Japan. It offers Yen/foreign currency deposits, and structured deposits; home mortgages; corporate loans, finance for start-up, real estate non-recourse finance, project finance, renewable energy finance, acquisition finance, ship finance, healthcare finance, sustainable finance/impact finance, M&A related finance, and specialty finance; and loan syndication. The company also provides foreign exchange and derivatives, M&A advisory, credit trading, private equity, business succession and change/closure support services, and wealth management, as well as prepaid and credit cards. In addition, it engages in the provision of trust services, leasing related financial products and services, equity related and other capital markets transactions, securities, asset and wealth management, unsecured loans, housing loans, investment trusts, brokerage, life and non-life insurance, consumer finance products and services, credit guarantee services, installment sales finance, credit cards, loan and payment services, and treasury services. The company was formerly known as The Long-Term Credit Bank of Japan, Limited and changed its name to Shinsei Bank, Limited in June 2000. Shinsei Bank, Limited was incorporated in 1952 and is headquartered in Tokyo, Japan.

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.