Critical Review: Oversea-Chinese Banking (OTCMKTS:OVCHY) & Mizuho Financial Group (NYSE:MFG)

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

Dividends

Oversea-Chinese Banking pays an annual dividend of $1.18 per share and has a dividend yield of 3.2%. Mizuho Financial Group pays an annual dividend of $0.14 per share and has a dividend yield of 1.5%. Mizuho Financial Group pays out 18.4% of its earnings in the form of a dividend.

Profitability

This table compares Oversea-Chinese Banking and Mizuho Financial Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oversea-Chinese Banking	N/A	N/A	N/A
Mizuho Financial Group	16.35%	15.19%	0.45%

Valuation and Earnings

This table compares Oversea-Chinese Banking 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
Oversea-Chinese Banking	$19.55 billion	4.21	$5.68 billion	N/A	N/A
Mizuho Financial Group	$4,316.92 billion	0.03	$8.29 billion	$0.76	12.20

Mizuho Financial Group has higher revenue and earnings than Oversea-Chinese Banking.

Insider and Institutional Ownership

0.0% of Oversea-Chinese Banking shares are owned by institutional investors. Comparatively, 3.3% of Mizuho Financial Group shares are owned by institutional investors. 0.0% of Mizuho Financial Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for Oversea-Chinese Banking and Mizuho Financial Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oversea-Chinese Banking	0	1	0	0	2.00
Mizuho Financial Group	0	1	1	0	2.50

Volatility and Risk

Oversea-Chinese Banking has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500. Comparatively, Mizuho Financial Group has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500.

Summary

Mizuho Financial Group beats Oversea-Chinese Banking on 10 of the 13 factors compared between the two stocks.

About Oversea-Chinese Banking

Oversea-Chinese Banking Corporation Limited engages in the provision of financial services in Singapore, Malaysia, Indonesia, Greater China, rest of the Asia Pacific, and internationally. The company's Global Consumer/Private Banking segment provides products and services to individual customers, including checking accounts, and savings and fixed deposits; housing and other personal loans; credit cards; wealth management products consisting of unit trusts, banc assurance products, and structured deposits; and brokerage services. This segment also offers investment advice and portfolio management, estate and trust planning, and wealth structuring services for high-net-worth individuals. Its Global Wholesale Banking segment provides long-term project financing, short-term credit, working capital, and trade financing; customized and structured equity-linked financing products; cash management and custodian services; capital market solutions; corporate finance and advisory banking services; and treasury products. This segment serves corporates, public sector, and small and medium enterprises. The company's Global Markets segment is involved in the foreign exchange activities, money market operations, and fixed income and derivatives trading, as well as structured treasury products and financial solutions. Its Insurance segment provides fund management services, and life and general insurance products. The company's Others segment is involved in property and investment holding activities. Oversea-Chinese Banking Corporation Limited was founded in 1912 and is headquartered in Singapore.

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.