Contrasting China Minsheng (OTCMKTS:CMAKY) & Mizuho Financial Group (NYSE:MFG)

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

Analyst Ratings

This is a breakdown of recent recommendations for Mizuho Financial Group and China Minsheng, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mizuho Financial Group	0	1	0	1	3.00
China Minsheng	0	1	0	0	2.00

Dividends

Mizuho Financial Group pays an annual dividend of $0.15 per share and has a dividend yield of 2.0%. China Minsheng pays an annual dividend of $0.27 per share and has a dividend yield of 6.0%. Mizuho Financial Group pays out 27.3% of its earnings in the form of a dividend. China Minsheng pays out 30.7% 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 Mizuho Financial Group and China Minsheng’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mizuho Financial Group	11.57%	9.20%	0.35%
China Minsheng	11.27%	4.49%	0.39%

Volatility & Risk

Mizuho Financial Group has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500. Comparatively, China Minsheng has a beta of 0.26, indicating that its share price is 74% less volatile than the S&P 500.

Valuation and Earnings

This table compares Mizuho Financial Group and China Minsheng”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mizuho Financial Group	$59.30 billion	1.55	$3.92 billion	$0.55	13.48
China Minsheng	$37.47 billion	0.53	$4.49 billion	$0.88	5.11

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

Institutional and Insider Ownership

3.3% of Mizuho Financial Group shares are held by institutional investors. 0.0% of Mizuho Financial Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Mizuho Financial Group beats China Minsheng on 11 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 China Minsheng

China Minsheng Banking Corp., Ltd. provides banking products and services for individuals, small and micro-enterprises, corporate customers, government agencies, and financial institutions in the People's Republic of China. The company operates through Corporate Banking, Retail Banking, and Others segments. Its deposit products include saving accounts, deposit books and certificates, contracted deposits, agreement deposits, call deposits, corporate term deposits, and corporate current deposits. The company also offers personal housing mortgage, individual automobile purchase, household composite consumption, micro-credit products for individuals, medium and long term, and short-term working capital loans; and debit and credit cards. In addition, it provides appointed and domestic remittance, payment and collection agent, clearing, safe deposit boxes, VIP, and salary and welfare agent card services, as well as internet, mobile, telephone, and self-serve banking services. Further, the company offers gross settlement; wages distribution agency and letter of guarantee; cash management; trade finance; industrial chain finance; individual forex settlement, forex remittance, travelers promissory notes, collection, individual deposit certificate, and guarantee letter products; and comprehensive credit granting, forex settlement and sale, financial product investment, asset management, and trust financing services. Additionally, it provides convenient finance and investment banking services, as well as non-financial services in the education, business travel, traveler, art, luxury life, health, club, and isports areas. The company operates through branch-level institutions, business outlets, community sub-branches, and small business sub-branches. China Minsheng Banking Corp., Ltd. was incorporated in 1996 and is headquartered in Beijing, the People's Republic of China.