Financial Analysis: MidWestOne Financial Group (NASDAQ:MOFG) vs. Mizuho Financial Group (NYSE:MFG)

Mizuho Financial Group (NYSE:MFG) and MidWestOne Financial Group (NASDAQ:MOFG) are both financial services companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, earnings, risk and analyst recommendations.

Volatility and Risk

Mizuho Financial Group has a beta of 0.39, indicating that its share price is 61% less volatile than the S&P 500. Comparatively, MidWestOne Financial Group has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500.

Dividends

Mizuho Financial Group pays an annual dividend of $0.11 per share and has a dividend yield of 2.7%. MidWestOne Financial Group pays an annual dividend of $0.97 per share and has a dividend yield of 3.3%. Mizuho Financial Group pays out 36.7% of its earnings in the form of a dividend. MidWestOne Financial Group pays out 67.4% 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. MidWestOne Financial Group has increased its dividend for 14 consecutive years. MidWestOne Financial Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mizuho Financial Group	$3,201.44 billion	0.02	$6.30 billion	$0.30	13.77
MidWestOne Financial Group	$183.24 million	2.53	$20.86 million	$1.44	20.43

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

Analyst Ratings

This is a summary of current recommendations and price targets for Mizuho Financial Group and MidWestOne Financial Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mizuho Financial Group	0	0	0	0	N/A
MidWestOne Financial Group	0	4	0	0	2.00

MidWestOne Financial Group has a consensus target price of $26.38, suggesting a potential downside of 11.08%. Given MidWestOne Financial Group’s higher probable upside, analysts plainly believe MidWestOne Financial Group is more favorable than Mizuho Financial Group.

Institutional and Insider Ownership

3.3% of Mizuho Financial Group shares are owned by institutional investors. Comparatively, 65.4% of MidWestOne Financial Group shares are owned by institutional investors. 0.0% of Mizuho Financial Group shares are owned by company insiders. Comparatively, 2.8% of MidWestOne Financial Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mizuho Financial Group	6.38%	6.64%	0.24%
MidWestOne Financial Group	9.79%	5.27%	0.42%

Summary

MidWestOne Financial Group beats Mizuho Financial Group on 11 of the 15 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, Asia/Oceania, and internationally. It operates through Retail & Business Banking Company, Corporate & Institutional Company, Global Corporate Company, Global Markets Company, Asset Management Company, and Others segments. 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 fund management, underwriting of equity and bonds, risk hedging products, etc. for corporate customers; solutions based on capital management, business strategy, and financial strategy; real estate services; 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 corporate finance and transaction banking srvices; sales and trading services; investment products; pension funds; and ALM and investment services, including stable capital raising and balance sheet management, as well as management of fixed income, equity, and other securities portfolios. Additionally, the company provides online banking, cash management solutions, currency transaction, trade finance, custody, yen correspondence settlement, and research and consulting services; trust, securitization and structured finance, and stock transfers; and private banking and information technology-related services. Mizuho Financial Group, Inc. was founded in 2000 and is headquartered in Tokyo, Japan.

About MidWestOne Financial Group

MidWestOne Financial Group, Inc. operates as the bank holding company for MidWestOne Bank that provides commercial and retail banking products and services to individuals, businesses, governmental units, and institutional customers. It offers range of deposit products, including noninterest bearing and interest bearing demand deposits, savings, money market, and time deposits accounts. The company also provides commercial, real estate, agricultural, credit card, and consumer loans; and financing arrangements, such as brokered deposits, term debt, subordinated debt, and equity. In addition, it offers trust and investment services comprising administering estates, trusts, and conservatorships; property and farm management, investment advisory, retail securities brokerage, financial planning, and custodial services; and licensed brokers services. Further, the company provides online and mobile banking, debit cards, automated teller machines, and safe deposit boxes. MidWestOne Financial Group, Inc. was founded in 1934 and is headquartered in Iowa City, Iowa.