Comparing Mizuho Financial Group (NYSE:MFG) and First Bancorp (NASDAQ:FNLC)


Mizuho Financial Group (NYSE:MFGGet Rating) and First Bancorp (NASDAQ:FNLCGet Rating) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Institutional and Insider Ownership

1.7% of Mizuho Financial Group shares are held by institutional investors. Comparatively, 39.1% of First Bancorp shares are held by institutional investors. 5.8% of First Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Mizuho Financial Group pays an annual dividend of $0.11 per share and has a dividend yield of 4.6%. First Bancorp pays an annual dividend of $1.28 per share and has a dividend yield of 4.5%. Mizuho Financial Group pays out 25.6% of its earnings in the form of a dividend. First Bancorp pays out 38.0% 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. First Bancorp 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.

Earnings and Valuation

This table compares Mizuho Financial Group and First Bancorp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mizuho Financial Group $30.25 billion 0.99 $5.47 billion $0.43 5.51
First Bancorp $96.46 million 3.28 $36.27 million $3.37 8.53

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Mizuho Financial Group and First Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mizuho Financial Group 0 1 1 0 2.50
First Bancorp 0 0 0 0 N/A

Profitability

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

Net Margins Return on Equity Return on Assets
Mizuho Financial Group 18.32% 5.15% 0.22%
First Bancorp 38.21% 15.47% 1.48%

Volatility & Risk

Mizuho Financial Group has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500. Comparatively, First Bancorp has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500.

Summary

First Bancorp beats Mizuho Financial Group on 10 of the 15 factors compared between the two stocks.

About Mizuho Financial Group (Get Rating)

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 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, risk hedging products, 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 needs for customers; 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. Its branch network included Mizuho Bank, Mizuho Trust and Banking, and Mizuho Securities; and ATMs in Japan. Mizuho Financial Group, Inc. was founded in 2003 and is headquartered in Tokyo, Japan.

About First Bancorp (Get Rating)

The First Bancorp, Inc. operates as the holding company for First National Bank that provides a range of banking products and services to individuals and businesses. It offers various deposit products, including demand, NOW, savings, money market, and certificates of deposit accounts. The company also provides commercial real estate loan products, such as mortgage loans to finance investments in real property comprising multi-family residential, commercial/retail, office, industrial, hotel, educational, and other specific or mixed use properties; commercial construction loans to finance construction of owner- and non-owner occupied commercial real estate properties; and other commercial loans, which include revolving and term loan obligations to business and corporate enterprises for the purpose of financing working capital or capital investment. In addition, it offers municipal loans for capitalized expenditures, construction projects, or tax-anticipation notes; residential term loans that include amortizing home mortgages and construction loans, which include loans for owner-occupied residential construction; home equity loans and lines of credit; and consumer loans, which are amortizing loans to individuals collateralized by automobiles, pleasure crafts, and recreation vehicles, as well as unsecured short-term time notes. Further, the company provides private banking, financial planning, investment management, and trust services to individuals, businesses, non-profit organizations, and municipalities, as well as payment processing services. It operates through 18 full-service banking offices in Lincoln, Knox, Waldo, Penobscot, Hancock, and Washington counties in the Mid-Coast, Eastern, and Down East regions of Maine. The company was formerly known as First National Lincoln Corporation and changed its name to The First Bancorp, Inc. in April 2008. The First Bancorp, Inc. was founded in 1864 and is based in Damariscotta, Maine.



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