Critical Contrast: Mizuho Financial Group (NYSE:MFG) & Affinity Bancshares (NASDAQ:AFBI)

Affinity Bancshares (NASDAQ:AFBI) and Mizuho Financial Group (NYSE:MFG) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, institutional ownership, dividends, valuation and risk.

Risk & Volatility

Affinity Bancshares has a beta of 0.13, meaning that its share price is 87% less volatile than the S&P 500. Comparatively, Mizuho Financial Group has a beta of 0.48, meaning that its share price is 52% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Affinity Bancshares and Mizuho Financial Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Affinity Bancshares	0	0	1	0	3.00
Mizuho Financial Group	0	0	0	1	4.00

Valuation and Earnings

This table compares Affinity Bancshares and Mizuho Financial Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Affinity Bancshares	$33.36 million	4.20	$8.33 million	$1.37	16.79
Mizuho Financial Group	$60.35 billion	2.10	$7.64 billion	$0.82	12.51

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Affinity Bancshares	16.50%	7.51%	1.04%
Mizuho Financial Group	17.15%	12.82%	0.49%

Institutional and Insider Ownership

39.3% of Affinity Bancshares shares are held by institutional investors. Comparatively, 3.3% of Mizuho Financial Group shares are held by institutional investors. 12.3% of Affinity Bancshares shares are held by company insiders. Comparatively, 0.0% of Mizuho Financial Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

About Affinity Bancshares

Affinity Bancshares, Inc. operates as the holding company for Affinity Bank that provides various banking products and services in Georgia. The company offers various deposit accounts, including savings accounts, checking accounts, certificates of deposit, and individual retirement accounts, as well as Kasasa (rewards) deposit program for checking accounts with interest rates or cash-back rewards. It offers commercial and residential real estate, commercial and industrial, residential mortgage, construction and land, and consumer loans, as well as balloon and adjustable-rate loans. In addition, the company invests in U.S. treasury securities; securities issued by the U.S. government and its agencies, or government sponsored enterprises, including mortgage-backed securities and collateralized mortgage obligations; corporate and municipal bonds; certificates of deposit in other financial institutions; and federal and money market funds. Further, it operates a virtual bank under the name FitnessBank, which accepts deposits and provides higher interest rates based on customers meeting certain fitness goals. Affinity Bancshares, Inc. was founded in 1928 and is headquartered in Covington, Georgia.

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.