Comparing Mitsubishi UFJ Financial Group (NYSE:MUFG) & Parke Bancorp (NASDAQ:PKBK)

Mitsubishi UFJ Financial Group (NYSE:MUFG) and Parke Bancorp (NASDAQ:PKBK) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Insider & Institutional Ownership

13.6% of Mitsubishi UFJ Financial Group shares are owned by institutional investors. Comparatively, 49.7% of Parke Bancorp shares are owned by institutional investors. 0.0% of Mitsubishi UFJ Financial Group shares are owned by company insiders. Comparatively, 13.0% of Parke Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility and Risk

Mitsubishi UFJ Financial Group has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500. Comparatively, Parke Bancorp has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Mitsubishi UFJ Financial Group and Parke Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mitsubishi UFJ Financial Group	0	0	3	2	3.40
Parke Bancorp	0	0	1	0	3.00

Dividends

Mitsubishi UFJ Financial Group pays an annual dividend of $0.51 per share and has a dividend yield of 2.3%. Parke Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 2.5%. Mitsubishi UFJ Financial Group pays out 33.3% of its earnings in the form of a dividend. Parke Bancorp pays out 20.8% 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. Parke Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mitsubishi UFJ Financial Group	17.63%	12.30%	0.66%
Parke Bancorp	29.99%	13.88%	2.05%

Valuation & Earnings

This table compares Mitsubishi UFJ Financial Group and Parke Bancorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mitsubishi UFJ Financial Group	$97.13 billion	2.74	$11.41 billion	$1.53	14.68
Parke Bancorp	$146.08 million	2.63	$37.78 million	$3.84	8.50

Mitsubishi UFJ Financial Group has higher revenue and earnings than Parke Bancorp. Parke Bancorp 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.

Summary

Parke Bancorp beats Mitsubishi UFJ Financial Group on 9 of the 16 factors compared between the two stocks.

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.

About Parke Bancorp

Parke Bancorp, Inc. operates as the bank holding company for Parke Bank that provides personal and business financial services to individuals and small to mid-sized businesses. The company offers various deposit products, including checking, savings, time, money market, and individual retirement accounts, as well as certificates of deposit. Its loan portfolio comprises commercial and industrial, construction, commercial and residential real estate mortgage, and consumer loans. In addition, the company provides debit cards, internet banking, and online bill payment services. Parke Bancorp, Inc. was founded in 1999 and is headquartered in Washington Township, New Jersey.