Mitsubishi UFJ Financial Group (MUFG) and Royal Bank of Scotland Group (RBSPF) Critical Comparison

Mitsubishi UFJ Financial Group (NYSE:MUFG) and Royal Bank of Scotland Group (OTCMKTS:RBSPF) are both large-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, earnings, analyst recommendations, valuation and risk.

Dividends

Mitsubishi UFJ Financial Group pays an annual dividend of $0.07 per share and has a dividend yield of 1.3%. Royal Bank of Scotland Group does not pay a dividend. Mitsubishi UFJ Financial Group pays out 9.9% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent recommendations for Mitsubishi UFJ Financial Group and Royal Bank of Scotland Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mitsubishi UFJ Financial Group 0 0 3 0 3.00
Royal Bank of Scotland Group 0 0 0 0 N/A

Risk & Volatility

Mitsubishi UFJ Financial Group has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500. Comparatively, Royal Bank of Scotland Group has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500.

Insider & Institutional Ownership

1.1% of Mitsubishi UFJ Financial Group shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Mitsubishi UFJ Financial Group and Royal Bank of Scotland Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mitsubishi UFJ Financial Group 15.87% 6.39% 0.36%
Royal Bank of Scotland Group 7.46% 5.41% 0.36%

Earnings & Valuation

This table compares Mitsubishi UFJ Financial Group and Royal Bank of Scotland Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mitsubishi UFJ Financial Group $54.79 billion 1.25 $11.05 billion $0.71 7.35
Royal Bank of Scotland Group $19.56 billion 1.61 $1.78 billion N/A N/A

Mitsubishi UFJ Financial Group has higher revenue and earnings than Royal Bank of Scotland Group.

Summary

Mitsubishi UFJ Financial Group beats Royal Bank of Scotland Group on 8 of the 11 factors compared between the two stocks.

About Mitsubishi UFJ Financial Group

Mitsubishi UFJ Financial Group, Inc., a bank holding company, provides financial services in Japan and internationally. Its Retail Banking Business Group segment offers a range of products and services, such as bank deposits, loans, asset management and administration services, investment products, and settlement services. This segment also provides annuity, single premium whole life, flat-rate premium whole life, medical, cancer, and nursing-care insurance products; testamentary trust services; housing loans; Internet banking services; and credit cards. The company's Corporate Banking Business Group segment provides loans and fund management, and remittance and foreign exchange services; securities businesses, syndicated loans, and structured finance; investment banking services; and transaction and trust banking services. Its Trust Assets Business Group segment offers asset management and administration services for products, such as pension trusts and security trusts. This segment also provides a range of services to corporate and other pension funds comprising pension fund management and administration, advice on pension schemes, and payment of benefits to scheme members. The company's Global Business Group segment offers project finance, export credit agency, and financing through asset-backed commercial papers; and investment banking services, such as debt and equity issuance and M&A advisory services, as well as consumer finance, investment, asset management, and other financial products and services to individuals, large corporations, financial institutions, and sovereign and multinational organizations. Its Global Markets Business Group segment offers financing, hedging, and investing solutions to retail, corporate, institutional, and governmental customers; and asset and liability management services. Mitsubishi UFJ Financial Group, Inc. was founded in 1880 and is headquartered in Tokyo, Japan.

About Royal Bank of Scotland Group

The Royal Bank of Scotland Group plc, together with its subsidiaries, provides banking and financial products and services to personal, commercial, corporate, and institutional customers worldwide. It operates through Personal & Business Banking, Commercial & Private Banking, RBS International, and NatWest Markets segments. The company offers savings and current accounts; secured personal loans, and business lending and asset-backed lending products; invoice financing and other financing products; and insurance products and credit cards. It also provides unitized fund, rate, portfolio management, payment, liquidity management, financial planning, and currency products. In addition, the company offers personal and business banking, commercial and private banking, wealth planning, investment management, risk management, and trading services to retail banking, mass affluent, small business, and high net worth customers. The Royal Bank of Scotland Group plc was founded in 1727 and is headquartered in Edinburgh, the United Kingdom.

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