Mizuho Financial Group (NYSE:MFG – Get Free Report) and Heritage Financial (NASDAQ:HFWA – Get Free Report) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, analyst recommendations, risk, dividends and valuation.
Risk & Volatility
Mizuho Financial Group has a beta of 0.46, meaning that its stock price is 54% less volatile than the S&P 500. Comparatively, Heritage Financial has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500.
Valuation and Earnings
This table compares Mizuho Financial Group and Heritage Financial”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Mizuho Financial Group | $60.35 billion | 2.26 | $7.64 billion | $0.82 | 13.48 |
| Heritage Financial | $335.97 million | 3.48 | $67.53 million | $2.10 | 13.60 |
Mizuho Financial Group has higher revenue and earnings than Heritage Financial. Mizuho Financial Group is trading at a lower price-to-earnings ratio than Heritage Financial, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Mizuho Financial Group and Heritage Financial’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% |
| Heritage Financial | 20.44% | 8.78% | 1.15% |
Dividends
Mizuho Financial Group pays an annual dividend of $0.14 per share and has a dividend yield of 1.3%. Heritage Financial pays an annual dividend of $1.00 per share and has a dividend yield of 3.5%. Mizuho Financial Group pays out 17.1% of its earnings in the form of a dividend. Heritage Financial pays out 47.6% 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. Heritage Financial has raised its dividend for 14 consecutive years. Heritage Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional & Insider Ownership
3.3% of Mizuho Financial Group shares are owned by institutional investors. Comparatively, 78.3% of Heritage Financial shares are owned by institutional investors. 0.0% of Mizuho Financial Group shares are owned by company insiders. Comparatively, 1.5% of Heritage Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Ratings
This is a summary of current ratings and target prices for Mizuho Financial Group and Heritage Financial, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Mizuho Financial Group | 0 | 0 | 0 | 1 | 4.00 |
| Heritage Financial | 1 | 2 | 4 | 0 | 2.43 |
Heritage Financial has a consensus target price of $32.67, suggesting a potential upside of 14.34%. Given Heritage Financial’s higher possible upside, analysts plainly believe Heritage Financial is more favorable than Mizuho Financial Group.
Summary
Heritage Financial 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 Heritage Financial
Heritage Financial Corporation operates as the bank holding company for Heritage Bank that provides various financial services to small and medium sized businesses and individuals in the United States. It accepts various deposit products, such as noninterest demand deposits, interest bearing demand deposits, money market accounts, savings accounts, personal checking accounts, and certificates of deposit. The company’s loan portfolio includes commercial and industrial loans, owner-occupied and non-owner occupied commercial real estate loans, one-to-four family residential loans, real estate construction and land development loans, consumer loans, commercial business loans, lines of credit, term equipment financing, and term real estate loans, as well as commercial business loans to a range of businesses in industries that include real estate and rental and leasing, healthcare, accommodation and food services, retail trade, and construction. It also originates loans that are guaranteed by the U.S. Small Business Administration; and provides objective advice from trusted advisers. The company was formerly known as Heritage Financial Corporation, M.H.C. and changed its name to Heritage Financial Corporation in 1998. Heritage Financial Corporation was founded in 1927 and is headquartered in Olympia, Washington.
Receive News & Ratings for Mizuho Financial Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Mizuho Financial Group and related companies with MarketBeat.com's FREE daily email newsletter.
