Financial Analysis: Mizuho Financial Group (NYSE:MFG) & Truist Financial (NYSE:TFC)

Truist Financial (NYSE:TFC – Get Rating) and Mizuho Financial Group (NYSE:MFG – Get Rating) are both large-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.

Dividends

Truist Financial pays an annual dividend of $2.08 per share and has a dividend yield of 7.0%. Mizuho Financial Group pays an annual dividend of $0.09 per share and has a dividend yield of 3.1%. Truist Financial pays out 46.3% of its earnings in the form of a dividend. Mizuho Financial Group pays out 27.3% 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. Truist Financial has increased its dividend for 1 consecutive years. Truist Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares Truist Financial and Mizuho Financial Group’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Truist Financial	$25.36 billion	1.56	$6.26 billion	$4.49	6.61
Mizuho Financial Group	$42.77 billion	0.88	-$932.03 million	$0.33	8.94

Truist Financial has higher earnings, but lower revenue than Mizuho Financial Group. Truist Financial is trading at a lower price-to-earnings ratio than Mizuho Financial Group, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

72.5% of Truist Financial shares are held by institutional investors. Comparatively, 0.5% of Mizuho Financial Group shares are held by institutional investors. 0.3% of Truist Financial shares are held by insiders. Comparatively, 0.0% of Mizuho Financial Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Truist Financial and Mizuho Financial Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Truist Financial	22.81%	12.37%	1.22%
Mizuho Financial Group	9.53%	6.26%	0.22%

Analyst Recommendations

This is a breakdown of recent recommendations for Truist Financial and Mizuho Financial Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Truist Financial	1	9	7	0	2.35
Mizuho Financial Group	0	1	2	0	2.67

Truist Financial presently has a consensus price target of $46.24, suggesting a potential upside of 55.67%. Given Truist Financial’s higher possible upside, equities analysts clearly believe Truist Financial is more favorable than Mizuho Financial Group.

Risk and Volatility

Truist Financial has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500. Comparatively, Mizuho Financial Group has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500.

Summary

Truist Financial beats Mizuho Financial Group on 13 of the 17 factors compared between the two stocks.

About Truist Financial

(Get Rating)

Truist Financial Corp. is a financial holding company, which engages in the provision of banking services to individuals, businesses, and municipalities. It operates through the following segments: Consumer Banking and Wealth, Corporate and Commercial Banking, Insurance Holdings, and Other, Treasury & Corporate. The Consumer Banking and Wealth segment consists of Retail Community Banking, National Consumer Finance, Services, Payments, Wealth Management and Banking Products and Professional Services and Mortgage Banking. The Corporate and Commercial Banking segment consists of Corporate and Investment Banking, Commercial Community Banking and Commercial Real Estate. The Insurance Holdings segment provides property and casualty, employee benefits and life insurance to businesses and individuals and also provides small business and corporate services, such as workers compensation and professional liability, as well as surety coverage and title insurance. It offers a variety of loans and lease financing to individuals and entities, including insurance premium financing, permanent commercial real estate financing arrangements, loan servicing for third-party investors, direct consumer fi

About Mizuho Financial Group

(Get Rating)

Mizuho Financial Group, Inc. operates as a holding company which engages in the provision of financial services such as banking, trust banking, securities, and others. It operates through the following segments: Mizuho Bank Ltd. (MHKB), Mizuho Trust & Banking Co., Ltd. (MHTB), and Mizuho Securities Co., Ltd. (MHSC). The Mizuho Bank Ltd. segment includes personal, retail, corporate, international banking, financial institutions, public sector, and trading services. The Mizuho Trust & Banking Co., Ltd. provides services related to trust, real estate, securitization, structured finance, pension and asset management, and stock transfer agency. The Mizuho Securities Co., Ltd. offers security services to individuals, corporations, financial institutions and public sector entities. The company was founded in 1864 and is headquartered in Tokyo, Japan.