Banco De Chile (NYSE:BCH) vs. Mizuho Financial Group (NYSE:MFG) Head-To-Head Review

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

Earnings and Valuation

This table compares Mizuho Financial Group and Banco De Chile”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mizuho Financial Group	$60.35 billion	2.18	$7.64 billion	$0.76	13.99
Banco De Chile	$3.89 billion	5.28	$1.30 billion	$2.42	16.83

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

Profitability

This table compares Mizuho Financial Group and Banco De Chile’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mizuho Financial Group	16.35%	11.90%	0.46%
Banco De Chile	29.95%	19.47%	2.09%

Volatility & Risk

Mizuho Financial Group has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500. Comparatively, Banco De Chile has a beta of 0.23, indicating that its share price is 77% less volatile than the S&P 500.

Dividends

Mizuho Financial Group pays an annual dividend of $0.14 per share and has a dividend yield of 1.3%. Banco De Chile pays an annual dividend of $1.65 per share and has a dividend yield of 4.1%. Mizuho Financial Group pays out 18.4% of its earnings in the form of a dividend. Banco De Chile pays out 68.2% 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.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Mizuho Financial Group and Banco De Chile, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mizuho Financial Group	0	1	1	0	2.50
Banco De Chile	1	4	0	0	1.80

Banco De Chile has a consensus price target of $37.00, suggesting a potential downside of 9.15%. Given Banco De Chile’s higher possible upside, analysts clearly believe Banco De Chile is more favorable than Mizuho Financial Group.

Insider and Institutional Ownership

3.3% of Mizuho Financial Group shares are owned by institutional investors. Comparatively, 1.2% of Banco De Chile shares are owned by institutional investors. 0.0% of Mizuho Financial Group shares are owned by insiders. Comparatively, 5.9% of Banco De Chile shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Banco De Chile beats Mizuho Financial Group on 9 of the 16 factors compared between the two stocks.

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.

About Banco De Chile

Banco de Chile, together with its subsidiaries, provides various banking services to customers in Chile. The company offers checking and debit accounts, debit and credit cards, and lines of credit; mortgage, consume, commercial, general purpose mortgage loans, and finance leases; and factoring services, mutual fund management, stock brokerage, foreign trade, payments and collections, insurance brokerage, including life and general insurance, as well as time deposits, savings instruments, and foreign currency services through branches under the Banco de Chile and Banco Edwards brands. It also provides working capital loans, corporate credit cards, foreign currency brokerage, leasing and long-term syndicated loans, advisory services for mergers acquisitions and debt restructuring; cash management services, including payment and collection services; and international fund transfer networks, current account and deposit products, fund administration, and treasury management. In addition, the company offers insurance brokerage, derivative contracts, transactional banking, financial risks coverage, representation and asset custody, investment banking and management, capital markets products, foreign exchange transactions; and advisory services for initial public offerings, capital increases, sales and purchases of blocks of shares, private capital placements, public share tenders, company valuations, bond issuances, and syndicated loans services. Further, it provides foreign exchange brokerage, forward contracts, interest rate swaps, repurchase agreements, and other investment products based on bonds, mortgage bonds and deposits. The company serves individuals, small and medium-sized companies, corporate clients, and large companies, real estate and construction, and high net worth family office customers. Banco de Chile was founded in 1893 and is headquartered in Santiago, Chile.