Mizuho Financial Group (NYSE:MFG) vs. First Community Bancshares (NASDAQ:FCBC) Financial Contrast

Mizuho Financial Group (NYSE:MFG) and First Community Bancshares (NASDAQ:FCBC) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, risk, earnings, profitability, valuation and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Mizuho Financial Group and First Community Bancshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mizuho Financial Group	0	0	1	0	3.00
First Community Bancshares	0	2	1	0	2.33

Dividends

Mizuho Financial Group pays an annual dividend of $0.14 per share and has a dividend yield of 1.5%. First Community Bancshares pays an annual dividend of $1.32 per share and has a dividend yield of 2.7%. Mizuho Financial Group pays out 17.1% of its earnings in the form of a dividend. First Community Bancshares pays out 41.6% 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. First Community Bancshares has raised its dividend for 13 consecutive years. First Community Bancshares 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, 35.0% of First Community Bancshares shares are owned by institutional investors. 0.0% of Mizuho Financial Group shares are owned by company insiders. Comparatively, 3.7% of First Community Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Mizuho Financial Group and First Community Bancshares’ 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%
First Community Bancshares	28.84%	10.67%	1.61%

Volatility & Risk

Mizuho Financial Group has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500. Comparatively, First Community Bancshares has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500.

Earnings and Valuation

This table compares Mizuho Financial Group and First Community Bancshares”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	1.96	$7.64 billion	$0.82	11.66
First Community Bancshares	$166.54 million	5.51	$48.79 million	$3.17	15.31

Mizuho Financial Group has higher revenue and earnings than First Community Bancshares. Mizuho Financial Group is trading at a lower price-to-earnings ratio than First Community Bancshares, indicating that it is currently the more affordable of the two stocks.

Summary

First Community Bancshares beats Mizuho Financial Group on 10 of the 15 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 First Community Bancshares

First Community Bankshares, Inc. operates as the financial holding company for First Community Bank that provides various banking products and services. It offers demand deposit accounts, savings and money market accounts, certificates of deposit, and individual retirement plans; and commercial, consumer real estate, and consumer and other loans. The company also provides trust management, estate administration, and investment advisory services; and investment management services. It serves individuals and businesses across various industries, such as education, government, and health services; coal mining and gas extraction; retail trade; construction; manufacturing; tourism; and transportation. The company operates through branches in West Virginia, Virginia, North Carolina, and Tennessee. Community Bankshares, Inc. was founded in 1874 and is headquartered in Bluefield, Virginia.