Mizuho Financial Group (NYSE:MFG) and U.S. Bancorp (NYSE:USB) are both large-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.
Volatility & Risk
Mizuho Financial Group has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500. Comparatively, U.S. Bancorp has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500.
0.4% of Mizuho Financial Group shares are held by institutional investors. Comparatively, 75.9% of U.S. Bancorp shares are held by institutional investors. 0.2% of U.S. Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This table compares Mizuho Financial Group and U.S. Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Mizuho Financial Group||12.89%||4.97%||0.23%|
Earnings and Valuation
This table compares Mizuho Financial Group and U.S. Bancorp’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Mizuho Financial Group||$32.16 billion||1.20||$5.20 billion||$0.40||7.60|
|U.S. Bancorp||$25.78 billion||3.15||$7.10 billion||$4.10||12.45|
U.S. Bancorp has lower revenue, but higher earnings than Mizuho Financial Group. Mizuho Financial Group is trading at a lower price-to-earnings ratio than U.S. Bancorp, indicating that it is currently the more affordable of the two stocks.
Mizuho Financial Group pays an annual dividend of $0.10 per share and has a dividend yield of 3.3%. U.S. Bancorp pays an annual dividend of $1.48 per share and has a dividend yield of 2.9%. Mizuho Financial Group pays out 25.0% of its earnings in the form of a dividend. U.S. Bancorp pays out 36.1% 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. U.S. Bancorp has raised its dividend for 8 consecutive years. Mizuho Financial Group is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a breakdown of current recommendations for Mizuho Financial Group and U.S. Bancorp, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Mizuho Financial Group||0||1||0||0||2.00|
U.S. Bancorp has a consensus price target of $58.75, suggesting a potential upside of 15.08%. Given U.S. Bancorp’s stronger consensus rating and higher probable upside, analysts clearly believe U.S. Bancorp is more favorable than Mizuho Financial Group.
U.S. Bancorp beats Mizuho Financial Group on 13 of the 17 factors compared between the two stocks.
About Mizuho Financial Group
Mizuho Financial Group, Inc., together with its subsidiaries, engages in banking, trust, securities, and other businesses related to financial services in Japan, the Americas, Europe, and Asia/Oceania. It operates through five segments: Retail & Business Banking Company, Corporate & Institutional Company, Global Corporate Company, Global Markets Company, and Asset Management Company. The company provides deposit products; syndicated, housing, and card loans; business matching services; and advisory services related to overseas expansions, and mergers and acquisitions-related services. It also offers consulting services, including asset management and asset succession; payroll services; and sells lottery tickets issued by prefectures and ordinance-designated cities. In addition, it offers financial solutions, such as bonds, mergers and acquisitions advisory, etc. for corporate customers to meet their needs in fund-raising, investment management, and financial strategies; solutions based on their capital management, business strategy, and financial strategy; solutions related to real estate; advisory services and solutions, such as advice on proposals on various investment products to financial institutions; and financial services that include funding support and public bonds underwriting. Further, the company offers sales and trading services to meet risk hedging and investment needs; investment products for individual customers; and consulting services for institutional investors. Additionally, the company provides products and services related to trust, securitization and structured finance, pension, and stock transfers; securities services; and research, private banking, and information technology-related services. As of March 31, 2018, its branch network included 465 Mizuho Bank, 60 Mizuho Trust and Banking, and 275 Mizuho Securities; and 7,200 ATMs in Japan. The company was founded in 2003 and is headquartered in Tokyo, Japan.
About U.S. Bancorp
U.S. Bancorp, a financial services holding company, provides various financial services in the United States. It operates in five segments: Corporate and Commercial Banking, Consumer and Business Banking, Wealth Management and Investment Services, Payment Services, and Treasury and Corporate Support. The company offers depository services, including checking accounts, savings accounts, and time certificate contracts; and lending services, such as traditional credit products, as well as credit card services, lease financing and import/export trade, asset-backed lending, agricultural finance, and other products. It also provides ancillary services comprising capital markets, treasury management, and receivable lock-box collection services to corporate customers; and a range of asset management and fiduciary services for individuals, estates, foundations, business corporations, and charitable organizations. In addition, the company offers investment and insurance products to its customers principally within its markets, as well as fund administration services to a range of mutual and other funds. Further, it provides corporate and purchasing card, and corporate trust services; and merchant processing services, as well as cash and investment management, ATM processing, mortgage banking, and brokerage and leasing services. The company offers its products and services through operating a network of 3,018 banking offices principally operating in the Midwest and West regions of the United States, as well as through online services and over mobile devices. It also operates a network of 4,681 ATMs. The company was founded in 1863 and is headquartered in Minneapolis, Minnesota.
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