Wintrust Financial Corporation (NASDAQ: WTFC) and Mitsubishi UFJ Financial Group (NYSE:MTU) are both mid-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, risk and analyst recommendations.

Risk and Volatility

Wintrust Financial Corporation has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500. Comparatively, Mitsubishi UFJ Financial Group has a beta of 1.62, meaning that its share price is 62% more volatile than the S&P 500.

Dividends

Wintrust Financial Corporation pays an annual dividend of $0.56 per share and has a dividend yield of 0.8%. Mitsubishi UFJ Financial Group pays an annual dividend of $0.15 per share and has a dividend yield of 2.5%. Wintrust Financial Corporation pays out 14.1% of its earnings in the form of a dividend. Mitsubishi UFJ Financial Group pays out 21.4% 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.

Profitability

This table compares Wintrust Financial Corporation and Mitsubishi UFJ Financial Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wintrust Financial Corporation 19.24% 9.15% 0.89%
Mitsubishi UFJ Financial Group 16.99% 6.59% 0.35%

Valuation and Earnings

This table compares Wintrust Financial Corporation and Mitsubishi UFJ Financial Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Wintrust Financial Corporation $1.07 billion 3.57 $221.57 million $3.97 17.22
Mitsubishi UFJ Financial Group $29.60 billion 0.23 $799.96 million $0.70 8.61

Mitsubishi UFJ Financial Group has higher revenue and earnings than Wintrust Financial Corporation. Mitsubishi UFJ Financial Group is trading at a lower price-to-earnings ratio than Wintrust Financial Corporation, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Wintrust Financial Corporation and Mitsubishi UFJ Financial Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wintrust Financial Corporation 0 5 3 0 2.38
Mitsubishi UFJ Financial Group 0 1 3 0 2.75

Wintrust Financial Corporation currently has a consensus price target of $80.86, suggesting a potential upside of 18.28%. Given Wintrust Financial Corporation’s higher possible upside, research analysts plainly believe Wintrust Financial Corporation is more favorable than Mitsubishi UFJ Financial Group.

Institutional and Insider Ownership

90.6% of Wintrust Financial Corporation shares are held by institutional investors. Comparatively, 1.1% of Mitsubishi UFJ Financial Group shares are held by institutional investors. 2.0% of Wintrust Financial Corporation shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Wintrust Financial Corporation beats Mitsubishi UFJ Financial Group on 9 of the 15 factors compared between the two stocks.

Wintrust Financial Corporation Company Profile

Wintrust Financial Corporation is a financial holding company. The Company conducts its businesses through three segments: community banking, specialty finance and wealth management. The Company offers community banking services to individuals, small to mid-sized businesses, local governmental units and institutional clients. Through specialty finance segment, the Company offers financing of insurance premiums for businesses and individuals; accounts receivable financing, value-added, out-sourced administrative services, and other specialty finance businesses. The Company offers a range of wealth management services through its subsidiaries, including trust and investment services, asset management and securities brokerage services. The Company offers MaxSafe deposit accounts, which provide customers with expanded Federal Deposit Insurance Corporation (FDIC) insurance coverage by spreading a customer’s deposit across its banks.

Mitsubishi UFJ Financial Group Company Profile

Mitsubishi UFJ Financial Group, Inc. (MUFJ) is a bank holding company. The Company’s segments include Integrated Retail Banking Business Group, Integrated Corporate Banking Business Group, Integrated Trust Assets Business Group, Integrated Global Business Group and Krungsri. The Company’s services include commercial banking, trust banking, securities, credit cards, consumer finance, asset management, leasing and various fields of financial services. The Company’s subsidiaries include The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), Mitsubishi UFJ Trust and Banking Corporation (MUTB), Mitsubishi UFJ Securities Holdings Co., Ltd. (MUSHD), Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. (MUMSS) and Mitsubishi UFJ NICOS Co., Ltd. Its Retail Banking Business Group covers retail businesses, including commercial banking, trust banking and securities businesses, and offers a range of banking products and services, including financial consulting services, to retail customers in Japan.

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