Mitsubishi UFJ Financial Group (NYSE:MUFG) and Intercorp Financial (NYSE:IFS) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, valuation and risk.
Valuation and Earnings
This table compares Mitsubishi UFJ Financial Group and Intercorp Financial’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Mitsubishi UFJ Financial Group||$60.80 billion||1.20||$7.85 billion||$0.74||7.22|
|Intercorp Financial||$1.51 billion||3.03||$329.95 million||N/A||N/A|
This table compares Mitsubishi UFJ Financial Group and Intercorp Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Mitsubishi UFJ Financial Group||12.04%||5.88%||0.33%|
Mitsubishi UFJ Financial Group pays an annual dividend of $0.17 per share and has a dividend yield of 3.2%. Intercorp Financial does not pay a dividend. Mitsubishi UFJ Financial Group pays out 23.0% of its earnings in the form of a dividend.
Institutional and Insider Ownership
1.0% of Mitsubishi UFJ Financial Group shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a summary of current ratings and price targets for Mitsubishi UFJ Financial Group and Intercorp Financial, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Mitsubishi UFJ Financial Group||0||1||1||0||2.50|
Intercorp Financial has a consensus price target of $56.50, indicating a potential upside of 41.32%. Given Intercorp Financial’s stronger consensus rating and higher possible upside, analysts clearly believe Intercorp Financial is more favorable than Mitsubishi UFJ Financial Group.
Mitsubishi UFJ Financial Group beats Intercorp Financial on 7 of the 12 factors compared between the two stocks.
Mitsubishi UFJ Financial Group Company Profile
Mitsubishi UFJ Financial Group, Inc., a bank holding company, provides financial services in Japan and internationally. Its Retail Banking Business Group segment offers a range of products and services, such as bank deposits, loans, asset management and administration services, investment products, and settlement services. This segment also provides annuity, single premium whole life, flat-rate premium whole life, medical, cancer, and nursing-care insurance products; testamentary trust services; housing loans; Internet banking services; and credit cards. The company's Corporate Banking Business Group segment provides loans and fund management, and remittance and foreign exchange services; securities businesses, syndicated loans, and structured finance; investment banking services; and transaction and trust banking services. Its Trust Assets Business Group segment offers asset management and administration services for products, such as pension trusts and security trusts. This segment also provides a range of services to corporate and other pension funds comprising pension fund management and administration, advice on pension schemes, and payment of benefits to scheme members. The company's Global Business Group segment offers project finance, export credit agency, and financing through asset-backed commercial papers; and investment banking services, such as debt and equity issuance and M&A advisory services, as well as consumer finance, investment, asset management, and other financial products and services to individuals, large corporations, financial institutions, and sovereign and multinational organizations. Its Global Markets Business Group segment offers financing, hedging, and investing solutions to retail, corporate, institutional, and governmental customers; and asset and liability management services. Mitsubishi UFJ Financial Group, Inc. was founded in 1880 and is headquartered in Tokyo, Japan.
Intercorp Financial Company Profile
Intercorp Financial Services, Inc. is a holding company, which engages in the provision of financial services. Through its subsidiaries, it operates through the following business segments: Banking, Insurance, and Wealth Management. The Banking segment provides a range of retail banking and commercial banking products, and services to individuals, large companies, and small and medium enterprises. The Insurance segment offers retirement, savings, life, unemployment, and other insurance products mainly to retail customers. The Wealth Management segment comprises wealth management, private banking, financing, brokerage, advisory, and other investment services mainly to high net worth individuals. The company was founded on September 19, 2006 and is headquartered in Lima, Peru.
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