Critical Survey: Societe Generale (SCGLY) vs. Mitsubishi UFJ Financial Group (MUFG)
Societe Generale (OTCMKTS:SCGLY) and Mitsubishi UFJ Financial Group (NYSE:MUFG) are both large-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, risk, dividends and profitability.
Insider and Institutional Ownership
0.7% of Societe Generale shares are owned by institutional investors. Comparatively, 1.1% of Mitsubishi UFJ Financial Group shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Societe Generale pays an annual dividend of $0.42 per share and has a dividend yield of 5.8%. Mitsubishi UFJ Financial Group pays an annual dividend of $0.07 per share and has a dividend yield of 1.3%. Societe Generale pays out 36.8% of its earnings in the form of a dividend. Mitsubishi UFJ Financial Group pays out 9.9% 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.
Earnings and Valuation
This table compares Societe Generale and Mitsubishi UFJ Financial Group’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Societe Generale||$27.06 billion||1.08||$3.17 billion||$1.14||6.32|
|Mitsubishi UFJ Financial Group||$54.79 billion||1.25||$11.05 billion||$0.71||7.38|
Mitsubishi UFJ Financial Group has higher revenue and earnings than Societe Generale. Societe Generale is trading at a lower price-to-earnings ratio than Mitsubishi UFJ Financial Group, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Societe Generale has a beta of 1.14, suggesting that its share price is 14% more volatile than the S&P 500. Comparatively, Mitsubishi UFJ Financial Group has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500.
This table compares Societe Generale and Mitsubishi UFJ Financial Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Mitsubishi UFJ Financial Group||15.87%||6.39%||0.36%|
This is a breakdown of current ratings for Societe Generale and Mitsubishi UFJ Financial Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Mitsubishi UFJ Financial Group||0||0||3||0||3.00|
Societe Generale presently has a consensus price target of $44.50, indicating a potential upside of 517.20%. Given Societe Generale’s higher probable upside, equities research analysts clearly believe Societe Generale is more favorable than Mitsubishi UFJ Financial Group.
Mitsubishi UFJ Financial Group beats Societe Generale on 10 of the 14 factors compared between the two stocks.
About Societe Generale
Société Générale Société anonyme provides financial services in Europe and internationally. It operates through three segments: French Retail Banking, International Retail Banking & Financial Services, and Global Banking and Investor Solutions. The company offers retail banking services to individual customers, professionals, and corporate and non-profit clients under the Societe Generale, Crédit du Nord, and Boursorama brands; and international retail banking and consumer credit services to individual and corporate customers in Europe, Russia, the Mediterranean Basin, and Sub-Saharan Africa. It also provides life, retirement savings scheme, personal protection, group retirement, dependence, annuity, auto and home, personal accident, school, individual personal protection, non-life, and other insurance products; vehicle leasing and fleet management services; and vendor and equipment finance services. In addition, the company assists corporates, financial institutions, public sector institutions, and family offices in terms of investments, strategic advisory, capital raising, and capital structure optimization; and offers structured finance, and investment and risk management solutions. Further, it provides access to market through solutions equities, fixed income and currencies, commodities, and alternative investments; private banking services, including asset allocation, portfolio management, funds, markets, and wealth management solutions to high net worth individuals; and asset management solutions. Additionally, the company offers securities services, such as clearing, custody and trustee, liquidity management, fund administration and asset servicing, fund distribution, and global issuer services. Société Générale Société anonyme was founded in 1864 and is based in Paris, France.
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 a range of products and services, such as bank deposits, loans, asset management and administration services, investment products, and settlement services. 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; securities businesses, 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 other pension funds comprising pension fund management and administration, advice on pension schemes, and payment of benefits to scheme members. 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 and 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 customers; 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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