Comparing Swedbank (OTCMKTS:SWDBY) & Mizuho Financial Group (NYSE:MFG)

Swedbank (OTCMKTS:SWDBY) and Mizuho Financial Group (NYSE:MFG) are both large-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, risk, dividends, institutional ownership and profitability.

Institutional & Insider Ownership

3.3% of Mizuho Financial Group shares are owned by institutional investors. 0.0% of Mizuho Financial Group shares are owned by insiders. 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 Swedbank and Mizuho Financial Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Swedbank	26.30%	15.55%	1.06%
Mizuho Financial Group	11.57%	9.20%	0.35%

Valuation & Earnings

This table compares Swedbank and Mizuho Financial Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Swedbank	$17.47 billion	2.59	$3.30 billion	SEK 2.89	13.92
Mizuho Financial Group	$59.30 billion	1.82	$3.92 billion	$0.55	15.75

Mizuho Financial Group has higher revenue and earnings than Swedbank. Swedbank 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.

Dividends

Swedbank pays an annual dividend of SEK 2.03 per share and has a dividend yield of 5.0%. Mizuho Financial Group pays an annual dividend of $0.15 per share and has a dividend yield of 1.7%. Swedbank pays out 70.2% 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.

Volatility and Risk

Swedbank has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500. Comparatively, Mizuho Financial Group has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Swedbank and Mizuho Financial Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Swedbank	3	4	0	0	1.57
Mizuho Financial Group	0	1	0	1	3.00

Summary

Mizuho Financial Group beats Swedbank on 8 of the 15 factors compared between the two stocks.

About Swedbank

Swedbank AB (publ) provides various banking products and services to private and corporate customers in Sweden, Estonia, Latvia, Lithuania, Norway, the United States, Finland, Denmark, Luxembourg, and China. The company operates through three business areas: Swedish Banking, Baltic Banking, and Corporates and Institutions. It offers savings accounts, mutual funds and insurance savings, pension savings, institutional asset management, and other savings and investment products; private residential lending, consumer financing, corporate lending, leasing, and other financing products, as well as trade finance and factoring services; and current accounts, cash handling, debit and credit cards, and card acquiring, as well as domestic, international, mobile, document, and other payment products. The company also provides equity trading, structured products, corporate finance, custody services, fixed income and currency trading, and other capital market products; and administrative services, treasury operations, real estate brokerage and management services, legal services, safe deposit boxes, and other services. In addition, it offers pension insurance and plan, life, endowment insurance, and personal insurance products; investment management, investment banking, and mortgage lending services; and transaction banking services comprising cash management, securities, account, and clearing and settlement services, as well as Internet and mobile banking services. The company was formerly known as ForeningsSparbanken AB and changed its name to Swedbank AB (publ) in September 2006. Swedbank AB (publ) was founded in 1820 and is headquartered in Sundbyberg, Sweden.

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.