Reviewing Commonwealth Bank of Australia (OTCMKTS:CMWAY) and Mizuho Financial Group (NYSE:MFG)

Mizuho Financial Group (NYSE:MFG) and Commonwealth Bank of Australia (OTCMKTS:CMWAY) are both large-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.

Dividends

Mizuho Financial Group pays an annual dividend of $0.14 per share and has a dividend yield of 1.4%. Commonwealth Bank of Australia pays an annual dividend of $3.17 per share and has a dividend yield of 2.7%. Mizuho Financial Group pays out 18.4% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Mizuho Financial Group and Commonwealth Bank of Australia”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	2.08	$8.24 billion	$0.76	13.39
Commonwealth Bank of Australia	$61.51 billion	3.15	$6.55 billion	N/A	N/A

Mizuho Financial Group has higher earnings, but lower revenue than Commonwealth Bank of Australia.

Profitability

This table compares Mizuho Financial Group and Commonwealth Bank of Australia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mizuho Financial Group	16.35%	15.19%	0.45%
Commonwealth Bank of Australia	N/A	N/A	N/A

Risk and Volatility

Mizuho Financial Group has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500. Comparatively, Commonwealth Bank of Australia has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500.

Institutional and Insider Ownership

3.3% of Mizuho Financial Group shares are owned by institutional investors. Comparatively, 0.0% of Commonwealth Bank of Australia shares are owned by institutional investors. 0.0% of Mizuho Financial Group shares are owned by 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.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Mizuho Financial Group and Commonwealth Bank of Australia, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mizuho Financial Group	0	1	1	0	2.50
Commonwealth Bank of Australia	1	1	0	0	1.50

Commonwealth Bank of Australia has a consensus target price of $130.18, suggesting a potential upside of 12.47%. Given Commonwealth Bank of Australia’s higher probable upside, analysts clearly believe Commonwealth Bank of Australia is more favorable than Mizuho Financial Group.

Summary

Mizuho Financial Group beats Commonwealth Bank of Australia on 8 of the 14 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 Commonwealth Bank of Australia

Commonwealth Bank of Australia provides financial services in Australia, New Zealand, and internationally. It operates through Retail Banking Services, Business Banking, Institutional Banking and Markets, and New Zealand segments. The company offers transaction, savings, and foreign currency accounts; term deposits; personal and business loans; overdrafts; equipment finance; credit cards; international payment and trade; and private banking services, as well as home and car loans. It also provides institutional banking services; funds management, superannuation, and share broking products and services; home, car, health, life, income protection, and travel insurance products, as well as retail, premium, business, offshore services. In addition, the company offers advisory services for high-net-worth individuals; equities trading and margin lending services; debt capital, transaction banking, working capital, and risk management services; and international and foreign exchange services. Commonwealth Bank of Australia was founded in 1911 and is based in Sydney, Australia.