Analyzing Mitsubishi UFJ Financial Group (NYSE:MUFG) & Standard Chartered (OTCMKTS:SCBFF)

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

Risk and Volatility

Standard Chartered has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500. Comparatively, Mitsubishi UFJ Financial Group has a beta of 0.35, indicating that its share price is 65% less volatile than the S&P 500.

Earnings & Valuation

This table compares Standard Chartered and Mitsubishi UFJ Financial Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Standard Chartered	$41.04 billion	1.36	$4.05 billion	$1.88	13.04
Mitsubishi UFJ Financial Group	$89.51 billion	2.11	$8.36 billion	$1.12	14.18

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

Dividends

Standard Chartered pays an annual dividend of $0.25 per share and has a dividend yield of 1.0%. Mitsubishi UFJ Financial Group pays an annual dividend of $0.38 per share and has a dividend yield of 2.4%. Standard Chartered pays out 13.3% of its earnings in the form of a dividend. Mitsubishi UFJ Financial Group pays out 33.9% 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.

Institutional & Insider Ownership

13.6% of Mitsubishi UFJ Financial Group shares are held by institutional investors. 0.0% of Mitsubishi UFJ Financial Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations for Standard Chartered and Mitsubishi UFJ Financial Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Standard Chartered	0	1	2	1	3.00
Mitsubishi UFJ Financial Group	0	2	0	0	2.00

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Standard Chartered	12.84%	10.88%	0.65%
Mitsubishi UFJ Financial Group	13.98%	9.39%	0.49%

About Standard Chartered

Standard Chartered PLC, together with its subsidiaries, provides various banking products and services in Asia, Africa, the Middle East, Europe, and the Americas. The company operates in three segments: Corporate, Commercial & Institutional Banking; Consumer, Private & Business Banking; and Ventures. It offers retail products, such as deposits, mortgages, credit cards, and personal loans; wealth management products and services that include investments, portfolio management, insurance, and wealth advice; and transaction banking services, such as cash management, working capital, and trade financing products. The company provides financial markets products and services that comprise project and export financing; debt capital markets and leveraged financing; financing and securities services; sales and structuring; macro, commodities, and credit trading; and market research services. In addition, it offers digital banking solutions. It serves financial institutions, governments, banks, investors, corporations, small to medium-sized businesses, and individuals. Standard Chartered PLC was founded in 1853 and is headquartered in London, the United Kingdom.

About Mitsubishi UFJ Financial Group

Mitsubishi UFJ Financial Group, Inc. operates as the bank holding company, that engages in a range of financial businesses in Japan, the United States, Europe, Asia/Oceania, and internationally. It operates through seven segments: Digital Service, Retail & Commercial Banking, Japanese Corporate & Investment Banking, Global Commercial Banking, Asset Management & Investor Services, Global Corporate & Investment Banking, and Global Markets. The company offers commercial banking, trust banking, and securities products and services to retail, and small and medium-sized enterprise customers. It also provides mergers and acquisition, debt and equity issuance, financial advice, and real estate-related services; digital-based financial services; credit cards; and trust banking and securities products and services, as well as engages in the lending, fund settlement, and foreign exchange businesses. In addition, the company offers corporate banking services, such as project export credit agency finance, and financing through asset-backed commercial paper; investment and transaction banking services for corporations, financial institutions, sovereign and multinational organizations, and institutional investors; and asset management and investor services, including pension fund management and administration, pension structure advisory, beneficiary payment, and investment trust services for retail customers. Further, it provides loans, deposits, fund transfers, hedging, and investments services for retail, small and medium-sized enterprise, as well as corporate customers; financing for automotive and consumer goods; sells and trades in fixed income instruments, currencies, equities, and equities; offers investment products comprising mutual funds, structured bonds, and notes; originates and distributes of financial products; and provides insurance and treasury services. The company was founded in 1880 and is headquartered in Tokyo, Japan.