Mizuho Financial Group (NYSE:MFG – Get Free Report) and Bank of Hawaii (NYSE:BOH – Get Free Report) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, earnings, risk, dividends, profitability and analyst recommendations.
Valuation & Earnings
This table compares Mizuho Financial Group and Bank of Hawaii”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Mizuho Financial Group | $60.35 billion | 1.95 | $7.64 billion | $0.82 | 11.61 |
| Bank of Hawaii | $1.07 billion | 2.60 | $205.90 million | $5.36 | 13.14 |
Mizuho Financial Group has higher revenue and earnings than Bank of Hawaii. Mizuho Financial Group is trading at a lower price-to-earnings ratio than Bank of Hawaii, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
3.3% of Mizuho Financial Group shares are owned by institutional investors. Comparatively, 82.2% of Bank of Hawaii shares are owned by institutional investors. 0.0% of Mizuho Financial Group shares are owned by company insiders. Comparatively, 2.0% of Bank of Hawaii shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Mizuho Financial Group and Bank of Hawaii’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% |
| Bank of Hawaii | 21.84% | 15.72% | 0.98% |
Volatility & Risk
Mizuho Financial Group has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500. Comparatively, Bank of Hawaii has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings for Mizuho Financial Group and Bank of Hawaii, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Mizuho Financial Group | 0 | 0 | 1 | 0 | 3.00 |
| Bank of Hawaii | 0 | 6 | 2 | 0 | 2.25 |
Bank of Hawaii has a consensus target price of $85.00, suggesting a potential upside of 20.72%. Given Bank of Hawaii’s higher possible upside, analysts clearly believe Bank of Hawaii is more favorable than Mizuho Financial Group.
Dividends
Mizuho Financial Group pays an annual dividend of $0.14 per share and has a dividend yield of 1.5%. Bank of Hawaii pays an annual dividend of $2.80 per share and has a dividend yield of 4.0%. Mizuho Financial Group pays out 17.1% of its earnings in the form of a dividend. Bank of Hawaii pays out 52.2% 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. Bank of Hawaii has increased its dividend for 1 consecutive years. Bank of Hawaii is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Bank of Hawaii beats Mizuho Financial Group on 13 of the 17 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 Bank of Hawaii
Bank of Hawaii Corporation operates as the bank holding company for Bank of Hawaii that provides various financial products and services in Hawaii, Guam, and other Pacific Islands. It operates in three segments: Consumer Banking, Commercial Banking, and Treasury and Other. The Consumer Banking segment offers checking, savings, and time deposit accounts; residential mortgage loans, home equity lines of credit, automobile loans and leases, overdraft lines of credit, installment loans, small business loans and leases, and credit cards; private and international client banking, investment, credit, and trust services to individuals and families, as well as high-net-worth individuals; investment management; institutional investment advisory services to corporations, government entities, and foundations; and brokerage offerings, including equities, mutual funds, life insurance, and annuity products. The Commercial Banking segment provides corporate banking, commercial real estate loans, commercial lease financing, auto dealer financing, and deposit products. This segment also offers commercial lending and deposit products to middle-market and large companies, and government entities; commercial real estate mortgages to investors, developers, and builders; and international banking and merchant services. The Treasury and Other segment provides corporate asset and liability management services, including interest rate risk management and foreign exchange services. Bank of Hawaii Corporation was founded in 1897 and is headquartered in Honolulu, Hawaii.
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