Head to Head Analysis: MidWestOne Financial Group (NASDAQ:MOFG) vs. Mitsubishi UFJ Financial Group (NYSE:MUFG)

Mitsubishi UFJ Financial Group (NYSE:MUFG) and MidWestOne Financial Group (NASDAQ:MOFG) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.

Volatility and Risk

Mitsubishi UFJ Financial Group has a beta of 0.44, meaning that its share price is 56% less volatile than the S&P 500. Comparatively, MidWestOne Financial Group has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Mitsubishi UFJ Financial Group and MidWestOne Financial Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mitsubishi UFJ Financial Group	0	0	3	2	3.40
MidWestOne Financial Group	0	2	1	0	2.33

MidWestOne Financial Group has a consensus price target of $50.00, suggesting a potential upside of 1.40%. Given MidWestOne Financial Group’s higher probable upside, analysts clearly believe MidWestOne Financial Group is more favorable than Mitsubishi UFJ Financial Group.

Insider and Institutional Ownership

13.6% of Mitsubishi UFJ Financial Group shares are owned by institutional investors. Comparatively, 65.4% of MidWestOne Financial Group shares are owned by institutional investors. 0.0% of Mitsubishi UFJ Financial Group shares are owned by company insiders. Comparatively, 2.5% of MidWestOne Financial Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Mitsubishi UFJ Financial Group pays an annual dividend of $0.50 per share and has a dividend yield of 2.2%. MidWestOne Financial Group pays an annual dividend of $0.97 per share and has a dividend yield of 2.0%. Mitsubishi UFJ Financial Group pays out 32.7% of its earnings in the form of a dividend. MidWestOne Financial Group pays out 34.5% 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. Mitsubishi UFJ Financial Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Mitsubishi UFJ Financial Group and MidWestOne Financial Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mitsubishi UFJ Financial Group	$7,863.01 billion	0.03	$11.41 billion	$1.53	14.62
MidWestOne Financial Group	$238.84 million	4.26	-$60.29 million	$2.81	17.55

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

Profitability

This table compares Mitsubishi UFJ Financial Group and MidWestOne Financial Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mitsubishi UFJ Financial Group	17.63%	12.30%	0.66%
MidWestOne Financial Group	16.66%	10.22%	0.96%

Summary

Mitsubishi UFJ Financial Group beats MidWestOne Financial Group on 9 of the 17 factors compared between the two stocks.

About Mitsubishi UFJ Financial Group

Mitsubishi UFJ Financial Group, Inc. operates as the bank holding company, that engages in a range of financial businesses in Japan, the United States, Europe, Asia/Oceania, and internationally. It operates through seven segments: Digital Service, Retail & Commercial Banking, Japanese Corporate & Investment Banking, Global Commercial Banking, Asset Management & Investor Services, Global Corporate & Investment Banking, and Global Markets. The company offers commercial banking, trust banking, and securities products and services to retail, and small and medium-sized enterprise customers. It also provides mergers and acquisition, debt and equity issuance, financial advice, and real estate-related services; digital-based financial services; credit cards; and trust banking and securities products and services, as well as engages in the lending, fund settlement, and foreign exchange businesses. In addition, the company offers corporate banking services, such as project export credit agency finance, and financing through asset-backed commercial paper; investment and transaction banking services for corporations, financial institutions, sovereign and multinational organizations, and institutional investors; and asset management and investor services, including pension fund management and administration, pension structure advisory, beneficiary payment, and investment trust services for retail customers. Further, it provides loans, deposits, fund transfers, hedging, and investments services for retail, small and medium-sized enterprise, as well as corporate customers; financing for automotive and consumer goods; sells and trades in fixed income instruments, currencies, equities, and equities; offers investment products comprising mutual funds, structured bonds, and notes; originates and distributes of financial products; and provides insurance and treasury services. The company was founded in 1880 and is headquartered in Tokyo, Japan.

About MidWestOne Financial Group

MidWestOne Financial Group, Inc. operates as the bank holding company for MidWestOne Bank that provides commercial and retail banking products and services to individuals, businesses, governmental units, and institutional customers. It offers range of deposit products, including noninterest bearing and interest bearing demand deposits, savings, money market, and time deposits accounts. The company also provides commercial, real estate, agricultural, credit card, and consumer loans; and financing arrangements, such as brokered deposits, term debt, subordinated debt, and equity. In addition, it offers trust and investment services comprising administering estates, trusts, and conservatorships; property and farm management, investment advisory, retail securities brokerage, financial planning, and custodial services; and licensed brokers services. Further, the company provides online and mobile banking, debit cards, automated teller machines, and safe deposit boxes. MidWestOne Financial Group, Inc. was founded in 1934 and is headquartered in Iowa City, Iowa.