Bridge Bancorp (NASDAQ:BDGE) and Mizuho Financial Group (NYSE:MFG) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, profitability, earnings, analyst recommendations and risk.

Profitability

This table compares Bridge Bancorp and Mizuho Financial Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bridge Bancorp 23.52% 9.66% 0.92%
Mizuho Financial Group 10.68% 4.74% 0.20%

Valuation and Earnings

This table compares Bridge Bancorp and Mizuho Financial Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bridge Bancorp $206.93 million 1.87 $51.69 million $2.59 7.58
Mizuho Financial Group $36.68 billion 0.94 $1.38 billion $0.34 7.97

Mizuho Financial Group has higher revenue and earnings than Bridge Bancorp. Bridge Bancorp 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.

Risk and Volatility

Bridge Bancorp has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500. Comparatively, Mizuho Financial Group has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Bridge Bancorp and Mizuho Financial Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bridge Bancorp 0 1 0 0 2.00
Mizuho Financial Group 0 1 0 0 2.00

Bridge Bancorp presently has a consensus target price of $33.00, indicating a potential upside of 68.02%. Given Bridge Bancorp’s higher probable upside, analysts plainly believe Bridge Bancorp is more favorable than Mizuho Financial Group.

Dividends

Bridge Bancorp pays an annual dividend of $0.96 per share and has a dividend yield of 4.9%. Mizuho Financial Group pays an annual dividend of $0.10 per share and has a dividend yield of 3.7%. Bridge Bancorp pays out 37.1% of its earnings in the form of a dividend. Mizuho Financial Group pays out 29.4% 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. Bridge Bancorp has raised its dividend for 1 consecutive years. Bridge Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

57.6% of Bridge Bancorp shares are held by institutional investors. Comparatively, 0.4% of Mizuho Financial Group shares are held by institutional investors. 16.5% of Bridge Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Bridge Bancorp beats Mizuho Financial Group on 11 of the 15 factors compared between the two stocks.

Bridge Bancorp Company Profile

Bridge Bancorp, Inc. operates as the bank holding company for the BNB Bank that provide commercial and consumer banking products and services to small businesses, and municipal and consumer relationships. It accepts time, savings, and demand deposits. The company offers commercial real estate, multi-family mortgage, residential mortgage, secured and unsecured commercial and consumer, home equity, and construction and land loans; and mortgage-backed securities, collateralized mortgage obligations, and other asset backed securities. In addition, it offers certificate of deposit account registry service and insured cash sweep programs; merchant credit and debit card processing, cash management, lockbox processing, online banking, and remote deposit capture services; automated teller machines, safe deposit boxes, and individual retirement accounts; and investment products and services through a third party broker dealer, as well as title insurance brokerage services. As of February 19, 2019, the company operated 39 retail branch locations serving Long Island and the greater New York metropolitan area; and 1 loan production office in Manhattan. Bridge Bancorp, Inc. was founded in 1910 and is based in Bridgehampton, New York.

Mizuho Financial Group Company Profile

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, and Asia/Oceania. It operates through five segments: Retail & Business Banking Company, Corporate & Institutional Company, Global Corporate Company, Global Markets Company, and Asset Management Company. 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 financial solutions, such as bonds, mergers and acquisitions advisory, etc. for corporate customers to meet their needs in fund-raising, investment management, and financial strategies; solutions based on their capital management, business strategy, and financial strategy; solutions related to real estate; 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 sales and trading services to meet risk hedging and investment needs; investment products for individual customers; and consulting services for institutional investors. Additionally, the company provides products and services related to trust, securitization and structured finance, pension, and stock transfers; securities services; and research, private banking, and information technology-related services. As of March 31, 2018, its branch network included 465 Mizuho Bank, 60 Mizuho Trust and Banking, and 275 Mizuho Securities; and 7,200 ATMs in Japan. The company was founded in 2003 and is headquartered in Tokyo, Japan.

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