Mizuho Financial Group (NYSE:MFG – Get Free Report) and Industrial & Commercial Bank of China Ltd. (OTCMKTS:IDCBY – Get Free Report) are both large-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, risk, valuation, profitability and earnings.
Profitability
This table compares Mizuho Financial Group and Industrial & Commercial Bank of China Ltd.’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Mizuho Financial Group | 12.31% | 9.23% | 0.35% |
| Industrial & Commercial Bank of China Ltd. | 24.78% | 8.95% | 0.71% |
Risk and Volatility
Mizuho Financial Group has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500. Comparatively, Industrial & Commercial Bank of China Ltd. has a beta of 0.11, suggesting that its share price is 89% less volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Mizuho Financial Group | 0 | 1 | 1 | 0 | 2.50 |
| Industrial & Commercial Bank of China Ltd. | 0 | 1 | 0 | 0 | 2.00 |
Dividends
Mizuho Financial Group pays an annual dividend of $0.14 per share and has a dividend yield of 1.6%. Industrial & Commercial Bank of China Ltd. pays an annual dividend of $0.61 per share and has a dividend yield of 3.4%. Mizuho Financial Group pays out 24.6% of its earnings in the form of a dividend. Industrial & Commercial Bank of China Ltd. pays out 21.5% 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. Industrial & Commercial Bank of China Ltd. is clearly the better dividend stock, given its higher yield and lower payout ratio.
Insider & Institutional Ownership
3.3% of Mizuho Financial Group shares are owned by institutional investors. 0.0% of Mizuho Financial Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Mizuho Financial Group and Industrial & Commercial Bank of China Ltd.”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Mizuho Financial Group | $3,804.37 billion | 0.03 | $3.92 billion | $0.57 | 14.92 |
| Industrial & Commercial Bank of China Ltd. | $208.16 billion | 1.55 | $51.27 billion | $2.84 | 6.36 |
Industrial & Commercial Bank of China Ltd. has lower revenue, but higher earnings than Mizuho Financial Group. Industrial & Commercial Bank of China Ltd. 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.
Summary
Mizuho Financial Group beats Industrial & Commercial Bank of China Ltd. on 8 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 Industrial & Commercial Bank of China Ltd.
Industrial and Commercial Bank of China Limited, together with its subsidiaries, provides banking products and services in the People's Republic of China and internationally. The company operates through Corporate Banking, Personal Banking, and Treasury Operations segments. The Corporate Banking segment offers financial products and services to corporations, government agencies, and financial institutions. Its products and services include trade financing, deposit, corporate wealth management, custody, and various corporate intermediary services, as well as corporate loans. Its Personal Banking segment provides financial products and services to individual customers. This segment's products and services comprise personal loans and cards, deposits, and personal wealth management and intermediary services. The Treasury Business segment is involved in the money market transactions, investment securities, and proprietary and foreign exchange transactions businesses. It also offers e-banking services, investment banking, financial leasing, and insurance services. Industrial and Commercial Bank of China Limited was incorporated in 1984 and is based in Beijing, the People's Republic of China.
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