American National BankShares (NASDAQ:AMNB) and Mizuho Financial Group (NYSE:MFG) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, analyst recommendations, institutional ownership, earnings, dividends and risk.
Valuation and Earnings
This table compares American National BankShares and Mizuho Financial Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|American National BankShares||$77.26 million||4.02||$15.24 million||$2.07||17.21|
|Mizuho Financial Group||$32.16 billion||1.33||$5.20 billion||$0.40||8.43|
This is a breakdown of current recommendations for American National BankShares and Mizuho Financial Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|American National BankShares||0||0||1||0||3.00|
|Mizuho Financial Group||0||2||0||0||2.00|
American National BankShares presently has a consensus price target of $41.00, suggesting a potential upside of 13.60%. Given American National BankShares’ stronger consensus rating and higher probable upside, equities research analysts plainly believe American National BankShares is more favorable than Mizuho Financial Group.
American National BankShares pays an annual dividend of $1.00 per share and has a dividend yield of 2.8%. Mizuho Financial Group pays an annual dividend of $0.10 per share and has a dividend yield of 3.0%. American National BankShares pays out 48.3% of its earnings in the form of a dividend. Mizuho Financial Group pays out 25.0% 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. American National BankShares has raised its dividend for 2 consecutive years. Mizuho Financial Group is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility & Risk
American National BankShares has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500. Comparatively, Mizuho Financial Group has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500.
Institutional and Insider Ownership
34.5% of American National BankShares shares are owned by institutional investors. Comparatively, 0.4% of Mizuho Financial Group shares are owned by institutional investors. 5.9% of American National BankShares shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares American National BankShares and Mizuho Financial Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|American National BankShares||24.19%||10.62%||1.23%|
|Mizuho Financial Group||16.59%||6.16%||0.29%|
American National BankShares beats Mizuho Financial Group on 12 of the 17 factors compared between the two stocks.
American National BankShares Company Profile
American National Bankshares Inc. operates as the bank holding company for American National Bank and Trust Company that provides financial products and services. The company operates through two segments, Community Banking, and Trust and Investment Services. It accepts deposit products, including checking, money market, savings, and consumer and commercial time deposits, as well as certificates of deposit. The company's loan products comprise commercial and residential real estate loans, commercial loans to small and medium-sized businesses, construction and land development loans, home equity loans, and consumer loans. It also offers trust and investment services, such as estate planning, trust account administration, investment management, and retail brokerage services; online and telephone banking services; insurance services; and investment management services, including purchasing equity, fixed income, and mutual fund investments for customer accounts, as well as operates 34 automated teller machines. As of February 21, 2018, it operated 26 banking offices and 2 loan production offices in Virginia and North Carolina. American National Bankshares Inc. was founded in 1909 and is headquartered in Danville, Virginia.
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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