Reviewing Banco Bilbao Vizcaya Argentaria (BBVA) and Mizuho Financial Group (NYSE:MFG)

Banco Bilbao Vizcaya Argentaria (NYSE: BBVA) and Mizuho Financial Group (NYSE:MFG) are both large-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, valuation, dividends, institutional ownership, profitability and risk.

Volatility & Risk

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Banco Bilbao Vizcaya Argentaria has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, Mizuho Financial Group has a beta of 1.19, indicating that its stock price is 19% more volatile than the S&P 500.

Profitability

This table compares Banco Bilbao Vizcaya Argentaria and Mizuho Financial Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Banco Bilbao Vizcaya Argentaria 13.74% 8.63% 0.67%
Mizuho Financial Group 16.11% 5.88% 0.27%

Analyst Recommendations

This is a summary of recent ratings and price targets for Banco Bilbao Vizcaya Argentaria and Mizuho Financial Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Banco Bilbao Vizcaya Argentaria 0 1 1 0 2.50
Mizuho Financial Group 0 3 0 0 2.00

Dividends

Banco Bilbao Vizcaya Argentaria pays an annual dividend of $0.30 per share and has a dividend yield of 3.8%. Mizuho Financial Group pays an annual dividend of $0.06 per share and has a dividend yield of 1.6%. Banco Bilbao Vizcaya Argentaria pays out 41.1% of its earnings in the form of a dividend. Mizuho Financial Group pays out 14.6% 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. Banco Bilbao Vizcaya Argentaria has increased its dividend for 6 consecutive years. Banco Bilbao Vizcaya Argentaria is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

This table compares Banco Bilbao Vizcaya Argentaria and Mizuho Financial Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Banco Bilbao Vizcaya Argentaria $28.55 billion 1.79 $3.98 billion $0.73 10.68
Mizuho Financial Group $30.46 billion 1.52 $5.61 billion $0.41 8.93

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

Insider & Institutional Ownership

3.4% of Banco Bilbao Vizcaya Argentaria shares are held by institutional investors. Comparatively, 0.4% of Mizuho Financial Group shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Banco Bilbao Vizcaya Argentaria beats Mizuho Financial Group on 10 of the 15 factors compared between the two stocks.

Banco Bilbao Vizcaya Argentaria Company Profile

Banco Bilbao Vizcaya Argentaria, S.A. (BBVA) is a diversified financial company engaged in retail banking, wholesale banking, asset management and private banking. Its segments include Banking Activity in Spain, Real Estate Activity in Spain, the United States Turkey, Mexico, South America and Rest of Eurasia. Its Banking Activity in Spain segment includes Retail Network in Spain, Corporate and Business Banking (CBB), and BBVA Seguros and Asset Management units in Spain. Its Real Estate Activity in Spain segment covers specialist management of real-estate assets in the country. In the United States it offers services through, BBVA Compass Bancshares Inc. and the BBVA New York branch. The Turkey segment represents its stake in the Turkish bank, Turkiye Garanti Bankasi A.S. It offers banking and insurance businesses in Mexico. In South America, it provides banking and insurance businesses. The Rest of Eurasia segment includes business activity in the rest of Europe and Asia.

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.

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