Mitsubishi UFJ Financial Group (NYSE:MUFG – Get Free Report) and Commonwealth Bank of Australia (OTCMKTS:CBAUF – Get Free Report) are both financial services companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, dividends, institutional ownership, risk and profitability.
Institutional & Insider Ownership
1.8% of Mitsubishi UFJ Financial Group shares are owned by institutional investors. Comparatively, 13.6% of Commonwealth Bank of Australia shares are owned by institutional investors. 0.0% of Mitsubishi UFJ Financial Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Mitsubishi UFJ Financial Group pays an annual dividend of $0.18 per share and has a dividend yield of 2.2%. Commonwealth Bank of Australia pays an annual dividend of $3.83 per share and has a dividend yield of 5.9%. Mitsubishi UFJ Financial Group pays out 18.9% of its earnings in the form of a dividend. Commonwealth Bank of Australia pays out 73.4% 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.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Mitsubishi UFJ Financial Group||0||0||1||1||3.50|
|Commonwealth Bank of Australia||0||0||0||0||N/A|
Earnings and Valuation
This table compares Mitsubishi UFJ Financial Group and Commonwealth Bank of Australia’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Mitsubishi UFJ Financial Group||$68.70 billion||1.45||$8.26 billion||$0.95||8.51|
|Commonwealth Bank of Australia||N/A||N/A||N/A||$5.22||12.51|
Mitsubishi UFJ Financial Group has higher revenue and earnings than Commonwealth Bank of Australia. Mitsubishi UFJ Financial Group is trading at a lower price-to-earnings ratio than Commonwealth Bank of Australia, indicating that it is currently the more affordable of the two stocks.
This table compares Mitsubishi UFJ Financial Group and Commonwealth Bank of Australia’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Mitsubishi UFJ Financial Group||16.02%||5.59%||0.26%|
|Commonwealth Bank of Australia||N/A||N/A||N/A|
Mitsubishi UFJ Financial Group beats Commonwealth Bank of Australia on 8 of the 12 factors compared between the two stocks.
About Mitsubishi UFJ Financial Group
Mitsubishi UFJ Financial Group, Inc. operates as the bank holding company for MUFG Bank, Ltd. that provides various financial services in Japan, the United States, Europe, Asia/Oceania, and internationally. It operates through Digital Service Business Group; Retail & Commercial Banking Business Group; Japanese Corporate & Investment Banking Business Group; Asset Management & Investor Services Business Group; Global Corporate & Investment Banking Business Group; Global Commercial Banking Business Group; and Global Markets Business Group segments. The company offers commercial banking, trust banking, and securities products and services to retail, and small and medium-sized enterprise customers. It also provides M&As and real estate-related services; digital-based financial services; credit cards; and trust banking and securities products and services, as well as engages in the lending, fund settlement, and foreign exchange businesses. In addition, it offers corporate, investment, and transaction banking services for large corporate and financial institutions; asset management and administration services for corporations and pension funds; loans, deposits, fund transfers, and investments services for retail, small and medium-sized enterprise, as well as corporate customers; fixed income instruments, currencies, equities, and other investment products; originates and distributes of financial products; and provides treasury services. The company was founded in 1880 and is headquartered in Tokyo, Japan.
About Commonwealth Bank of Australia
Commonwealth Bank of Australia provides financial services in Australia, New Zealand, and internationally. It operates through Retail Banking Services, Business Banking, Institutional Banking and Markets, and New Zealand segments. The company offers transaction, savings, and foreign currency accounts; term deposits; personal and business loans; overdrafts; equipment finance; credit cards; international payment and trade; and private banking services, as well as home and car loans. It also provides retail, premium, business, offshore, and institutional banking services; and funds management, superannuation, and share broking products and services, as well as car, health, life, income protection, and travel insurance. In addition, the company offers advisory services for high-net-worth individuals; equities trading and margin lending services; debt capital, transaction banking, working capital, and risk management services; and international and foreign exchange services. Commonwealth Bank of Australia was founded in 1911 and is based in Sydney, Australia.
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