Reviewing Byline Bancorp (NYSE:BY) & Mizuho Financial Group (NYSE:MFG)

Mizuho Financial Group (NYSE:MFG) and Byline Bancorp (NYSE:BY) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, valuation, profitability, institutional ownership, dividends and analyst recommendations.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mizuho Financial Group	$4,539.49 billion	0.03	$7.64 billion	$0.82	11.64
Byline Bancorp	$633.15 million	2.75	$130.05 million	$3.43	11.23

Mizuho Financial Group has higher revenue and earnings than Byline Bancorp. Byline Bancorp 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mizuho Financial Group	17.15%	12.82%	0.49%
Byline Bancorp	24.06%	12.04%	1.57%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Mizuho Financial Group and Byline Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mizuho Financial Group	0	0	1	0	3.00
Byline Bancorp	0	3	3	1	2.71

Byline Bancorp has a consensus target price of $43.50, suggesting a potential upside of 12.94%. Given Byline Bancorp’s higher probable upside, analysts clearly believe Byline Bancorp is more favorable than Mizuho Financial Group.

Institutional and Insider Ownership

3.3% of Mizuho Financial Group shares are owned by institutional investors. Comparatively, 67.7% of Byline Bancorp shares are owned by institutional investors. 0.0% of Mizuho Financial Group shares are owned by company insiders. Comparatively, 29.1% of Byline Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

Mizuho Financial Group pays an annual dividend of $0.14 per share and has a dividend yield of 1.5%. Byline Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 1.5%. Mizuho Financial Group pays out 17.1% of its earnings in the form of a dividend. Byline Bancorp pays out 16.3% 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. Byline Bancorp has raised its dividend for 1 consecutive years.

Risk & Volatility

Mizuho Financial Group has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500. Comparatively, Byline Bancorp has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500.

Summary

Byline Bancorp beats Mizuho Financial Group on 12 of the 18 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 Byline Bancorp

Byline Bancorp, Inc. operates as the bank holding company for Byline Bank that provides various banking products and services for small and medium sized businesses, commercial real estate and financial sponsors, and consumers in the United States. It offers various retail deposit products, including non-interest-bearing accounts, money market demand accounts, savings accounts, interest-bearing checking accounts, and time deposits; ATM and debit cards; and online, mobile, and text banking services, as well as commercial deposits. The company also provides term loans, revolving lines of credit, and construction financing services; senior secured financing solutions to private equity backed lower middle market companies; small business administration and united states department of agriculture loans; and treasury management products and services. In addition, it offers financing solutions for equipment vendors and their end users; syndication services; and investment, trust, and wealth management services that include fiduciary and executor services, financial planning solutions, investment advisory services, and private banking services for foundations and endowments, and high net worth individuals. The company was formerly known as Metropolitan Bank Group, Inc. and changed its name to Byline Bancorp, Inc. in 2015. Byline Bancorp, Inc. was founded in 1914 and is headquartered in Chicago, Illinois.