Banco Latinoamericano de Comerci Extr (NYSE: MUFG) and Mitsubishi UFJ Financial Group (NYSE:MUFG) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, risk, profitability, earnings and analyst recommendations.

Profitability

This table compares Banco Latinoamericano de Comerci Extr and Mitsubishi UFJ Financial Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Banco Latinoamericano de Comerci Extr 29.16% 7.39% 1.25%
Mitsubishi UFJ Financial Group 16.35% 6.56% 0.36%

Insider & Institutional Ownership

16.1% of Banco Latinoamericano de Comerci Extr shares are owned by institutional investors. Comparatively, 0.9% of Mitsubishi UFJ Financial Group shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for Banco Latinoamericano de Comerci Extr and Mitsubishi UFJ Financial Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Banco Latinoamericano de Comerci Extr 0 1 0 0 2.00
Mitsubishi UFJ Financial Group 0 0 1 0 3.00

Banco Latinoamericano de Comerci Extr presently has a consensus target price of $28.00, indicating a potential upside of 24.94%. Given Banco Latinoamericano de Comerci Extr’s higher possible upside, equities research analysts clearly believe Banco Latinoamericano de Comerci Extr is more favorable than Mitsubishi UFJ Financial Group.

Earnings & Valuation

This table compares Banco Latinoamericano de Comerci Extr and Mitsubishi UFJ Financial Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Banco Latinoamericano de Comerci Extr $244.58 million 3.61 $81.99 million $2.08 10.77
Mitsubishi UFJ Financial Group $54.79 billion 1.47 $11.05 billion $0.71 8.52

Mitsubishi UFJ Financial Group has higher revenue and earnings than Banco Latinoamericano de Comerci Extr. Mitsubishi UFJ Financial Group is trading at a lower price-to-earnings ratio than Banco Latinoamericano de Comerci Extr, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Banco Latinoamericano de Comerci Extr has a beta of 1.51, suggesting that its stock price is 51% more volatile than the S&P 500. Comparatively, Mitsubishi UFJ Financial Group has a beta of 1.74, suggesting that its stock price is 74% more volatile than the S&P 500.

Dividends

Banco Latinoamericano de Comerci Extr pays an annual dividend of $1.54 per share and has a dividend yield of 6.9%. Mitsubishi UFJ Financial Group pays an annual dividend of $0.13 per share and has a dividend yield of 2.1%. Banco Latinoamericano de Comerci Extr pays out 74.0% of its earnings in the form of a dividend. Mitsubishi UFJ Financial Group pays out 18.3% 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.

Summary

Banco Latinoamericano de Comerci Extr beats Mitsubishi UFJ Financial Group on 9 of the 15 factors compared between the two stocks.

About Banco Latinoamericano de Comerci Extr

Banco Latinoamericano de Comercio Exterior, S.A., a multinational bank, primarily engages in the financing of foreign trade in Latin America and the Caribbean. The company operates through two segments, Commercial and Treasury. It offers short and medium-term bilateral, collateral-backed, short and medium term trade, and pre-export financing structured loans; and discounting of notes, cross-border leasing, pre- and post-export financing, import financing, letters of credit, bank guarantees, documentary collection, irrevocable reimbursement undertakings, bankers' acceptance, vendor finance, and ECA-backed financing services. The company also provides working capital financing solutions, including short and medium-term bilateral loans, collateral-backed bilateral loans, leases, and vendor finance; structured syndicated and clubbed loans, such as acquisition financing, pre-export financing, A/B loan financing with multilateral agencies, bridge loans, and liability management; and treasury solutions comprising term deposits and private placements. It primarily serves corporations, middle-market companies, and banking and financial institutions. The company was formerly known as Banco Latinoamericano de Exportaciones, S.A. and changed its name to Banco Latinoamericano de Comercio Exterior, S.A. in June 2009. Banco Latinoamericano de Comercio Exterior, S.A. was founded in 1977 and is headquartered in Panama City, the Republic of Panama.

About Mitsubishi UFJ Financial Group

Mitsubishi UFJ Financial Group, Inc., a bank holding company, provides financial services in Japan and internationally. Its Retail Banking Business Group segment offers banking products and services, including financial consulting services; deposit products, such as non-interest-bearing deposit accounts; asset management and administration services; trust products; and other investment products. This segment also provides annuity, single premium whole life, flat-rate premium whole life, medical, cancer, and nursing-care insurance products; testamentary trust services; housing loans; Internet banking services; and credit cards. The company's Corporate Banking Business Group segment provides loans and fund management, and remittance and foreign exchange services; derivatives, securitization, syndicated loans, and structured finance; investment banking services; and transaction and trust banking services. Its Trust Assets Business Group segment offers asset management and administration services for products, such as pension trusts and security trusts. This segment also provides a range of services to corporate and pension funds comprising pension fund management and administration, advice on pension schemes, and payment to beneficiaries. The company's Global Business Group segment offers project finance, export credit agency, and financing through asset-backed commercial papers; and investment banking services, such as debt/equity issuance and M&A advisory services, as well as consumer finance, investment, asset management, and other financial products and services to individuals, large corporations, financial institutions, and sovereign and multinational organizations. Its Global Markets Business Group segment offers financing, hedging, and investing solutions to retail, corporate, institutional, and governmental clients; and asset and liability management services. Mitsubishi UFJ Financial Group, Inc. was founded in 1880 and is headquartered in Tokyo, Japan.

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