Woori Financial Group (NYSE:WF) and Royal Bank of Canada (NYSE:RY) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.
Earnings and Valuation
This table compares Woori Financial Group and Royal Bank of Canada’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Woori Financial Group | $10.06 billion | 0.65 | $1.83 billion | $7.63 | 3.77 |
| Royal Bank of Canada | $50.86 billion | 2.24 | $9.68 billion | $6.69 | 11.90 |
Royal Bank of Canada has higher revenue and earnings than Woori Financial Group. Woori Financial Group is trading at a lower price-to-earnings ratio than Royal Bank of Canada, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Woori Financial Group has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, Royal Bank of Canada has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500.
Institutional and Insider Ownership
0.8% of Woori Financial Group shares are owned by institutional investors. Comparatively, 41.8% of Royal Bank of Canada shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Woori Financial Group and Royal Bank of Canada’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Woori Financial Group | 14.94% | 7.81% | 0.50% |
| Royal Bank of Canada | 19.07% | 17.04% | 0.93% |
Analyst Ratings
This is a breakdown of recent recommendations for Woori Financial Group and Royal Bank of Canada, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Woori Financial Group | 0 | 1 | 0 | 0 | 2.00 |
| Royal Bank of Canada | 1 | 4 | 3 | 0 | 2.25 |
Royal Bank of Canada has a consensus target price of $112.60, indicating a potential upside of 41.48%. Given Royal Bank of Canada’s stronger consensus rating and higher possible upside, analysts plainly believe Royal Bank of Canada is more favorable than Woori Financial Group.
Summary
Royal Bank of Canada beats Woori Financial Group on 12 of the 13 factors compared between the two stocks.
About Woori Financial Group
Woori Financial Group Inc. provides commercial banking products and services to retail and individual customers, and corporations. The company offers salary, fixed deposit, savings, and ordinary and business deposit products; and professional, deposit mortgage, apartment, and mortgage loans, as well as corporate operating, facility, and policy loans. It also provides inquiry and retirement pension, bulk and automatic transfer, cash management, and foreign direct investment services. In addition, the company offers foreign currency, specialized remittance, expat banking, foreign exchange inquiry, exchange limit information, foreign currency remittance information, and foreign currency deposit information services; and other products and services, including insurance, fund, and custody services, as well as banking management services. Further, it provides system software development and maintenance, finance, other credit finance, credit information, security investment, and other services. As of June 30, 2018, the company operated approximately 880 branches and offices in Korea, and 23 branches and offices internationally. Woori Financial Group Inc. was founded in 1899 and is headquartered in Seoul, South Korea.
About Royal Bank of Canada
Royal Bank of Canada operates as a diversified financial service company worldwide. The company’s Personal & Commercial Banking segment offers check and savings accounts; home equity and auto financing, personal lending, private banking, mutual fund, self-directed brokerage account, and guaranteed investment certificate services; and credit cards, and payment products and solutions for individuals. It also provides lending, leasing, deposit, investment, foreign exchange, cash management, auto dealer financing, and trade products and services to small and medium-sized commercial businesses. In addition, this segment offers international financing and trade promotion services through branches, automated teller machines, and online and mobile banking. The company’s Wealth Management provides investment, trust, banking, credit, and other wealth management solutions to high and ultra-high net worth clients; and asset management products to institutional and individual clients through its distribution channels and third-party distributors. Its Insurance segment offers life, health, home, auto, travel, wealth, annuities, and reinsurance advice and solutions; and creditor and business insurance services to individual, business, and group clients through its field sales force, advice centers, and online, as well as through independent insurance advisors and affinity relationships. The company’s Investor & Treasury Services segment provides asset, cash management, transaction banking, and treasury services to institutional clients; correspondent banking and trade finance services for financial institutions; and short-term funding and liquidity management services. Its Capital Markets segment offers corporate and investment banking, as well as equity and debt origination, distribution, sale, and trading services for corporations, institutional investors, asset managers, governments, and central banks. The company was founded in 1864 and is headquartered in Toronto, Canada.
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