Head-To-Head Comparison: Mizuho Financial Group (MFG) & First Financial Bank (FFBC)

Mizuho Financial Group (NYSE: MFG) and First Financial Bank (NASDAQ:FFBC) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, dividends, earnings, institutional ownership and profitability.

Profitability

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

Net Margins Return on Equity Return on Assets
Mizuho Financial Group 16.11% 5.88% 0.27%
First Financial Bank 26.91% 12.18% 1.27%

Valuation and Earnings

This table compares Mizuho Financial Group and First Financial Bank’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mizuho Financial Group $30.46 billion 1.51 $5.61 billion $0.41 8.83
First Financial Bank $409.21 million 4.80 $96.78 million $1.61 19.41

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

Institutional & Insider Ownership

0.3% of Mizuho Financial Group shares are held by institutional investors. Comparatively, 79.3% of First Financial Bank shares are held by institutional investors. 3.4% of First Financial Bank shares are held 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.

Risk & Volatility

Mizuho Financial Group has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500. Comparatively, First Financial Bank has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500.

Dividends

Mizuho Financial Group pays an annual dividend of $0.06 per share and has a dividend yield of 1.7%. First Financial Bank pays an annual dividend of $0.76 per share and has a dividend yield of 2.4%. Mizuho Financial Group pays out 14.6% of its earnings in the form of a dividend. First Financial Bank pays out 47.2% 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 recommendations for Mizuho Financial Group and First Financial Bank, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mizuho Financial Group 0 4 0 0 2.00
First Financial Bank 1 3 3 0 2.29

First Financial Bank has a consensus target price of $31.00, indicating a potential downside of 0.80%. Given First Financial Bank’s stronger consensus rating and higher possible upside, analysts plainly believe First Financial Bank is more favorable than Mizuho Financial Group.

Summary

First Financial Bank beats Mizuho Financial Group on 12 of the 16 factors compared between the two stocks.

Mizuho Financial Group Company Profile

Mizuho Financial Group, Inc. engages in banking, trust banking, securities, and other businesses related to financial services in Japan, the Americas, Europe, and Asia/Oceania. 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 deposits; 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, 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 financial strategy and 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 risk hedging and investment needs; 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, information technology-related, telephone, and Internet banking services. As of December 31, 2017, its branch network included 466 Mizuho Bank, 57 Mizuho Trust and Banking, and 273 Mizuho Securities; and 6,900 ATMs in Japan. The company was founded in 2003 and is headquartered in Tokyo, Japan.

First Financial Bank Company Profile

First Financial Bancorp. operates as the bank holding company for First Financial Bank that provides commercial banking and other banking, and banking-related services to individuals and businesses in Ohio, Indiana, and Kentucky. The company accepts various deposit products, such as interest-bearing and noninterest-bearing accounts, time deposits, and cash management services for commercial customers. It also provides real estate loans secured by residential property or commercial property; commercial and industrial loans for various purposes, including inventory, receivables, and equipment; consumer loans comprising new and used vehicle loans, second mortgages on residential real estate, and unsecured loans; and home equity lines of credit. In addition, the company offers a range of trust and wealth management services; and long-term, lease, and equipment financing services. As of December 31, 2017, it operated 94 banking centers. First Financial Bancorp. was founded in 1863 and is headquartered in Cincinnati, Ohio.

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