Head to Head Comparison: Mizuho Financial Group (NYSE:MFG) and Oak Valley Bancorp (NASDAQ:OVLY)

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

Risk and Volatility

Oak Valley Bancorp has a beta of 0.21, suggesting that its share price is 79% less volatile than the S&P 500. Comparatively, Mizuho Financial Group has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500.

Insider & Institutional Ownership

30.9% of Oak Valley Bancorp shares are held by institutional investors. Comparatively, 3.3% of Mizuho Financial Group shares are held by institutional investors. 13.9% of Oak Valley Bancorp shares are held by insiders. Comparatively, 0.0% of Mizuho Financial Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Oak Valley Bancorp pays an annual dividend of $0.75 per share and has a dividend yield of 2.2%. Mizuho Financial Group pays an annual dividend of $0.14 per share and has a dividend yield of 1.3%. Oak Valley Bancorp pays out 26.6% of its earnings in the form of a dividend. Mizuho Financial Group pays out 17.1% 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. Oak Valley Bancorp has increased its dividend for 11 consecutive years. Oak Valley Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of recent ratings for Oak Valley Bancorp and Mizuho Financial Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oak Valley Bancorp 0 0 1 0 3.00
Mizuho Financial Group 0 0 0 1 4.00

Profitability

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

Net Margins Return on Equity Return on Assets
Oak Valley Bancorp 24.05% 11.31% 1.17%
Mizuho Financial Group 17.15% 12.82% 0.49%

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Oak Valley Bancorp $95.04 million 3.06 $23.91 million $2.82 12.27
Mizuho Financial Group $60.35 billion 2.24 $7.64 billion $0.82 13.32

Mizuho Financial Group has higher revenue and earnings than Oak Valley Bancorp. Oak Valley 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.

Summary

Oak Valley Bancorp beats Mizuho Financial Group on 9 of the 17 factors compared between the two stocks.

About Oak Valley Bancorp

(Get Free Report)

Oak Valley Bancorp operates as the bank holding company for Oak Valley Community Bank that provides a range of commercial banking services to individuals and small to medium-sized businesses in the Central Valley and the Eastern Sierras. The company's deposits products include checking and savings, money market, health savings, and individual retirement accounts, as well as certificates of deposit. It also offers commercial real estate loans, commercial business lending and trade finance, and small business administration lending, as well as consumer loans, including automobile loans, home mortgages, credit lines, and other personal loans. In addition, the company provides online and mobile banking, remote deposit capture, merchant, night depository, extended hours, wire transfer of funds, note collection services, and automated teller machines. The company was incorporated in 1990 and is headquartered in Oakdale, California.

About Mizuho Financial Group

(Get Free Report)

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.

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