Head-To-Head Survey: ING Groep (ING) vs. Mitsubishi UFJ Financial Group (MUFG)

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

Valuation and Earnings

This table compares ING Groep and Mitsubishi UFJ 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
ING Groep $21.36 billion 2.16 $5.62 billion $1.64 7.21
Mitsubishi UFJ Financial Group $54.79 billion 1.15 $8.91 billion $0.71 6.75

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

Analyst Ratings

This is a breakdown of current ratings for ING Groep and Mitsubishi UFJ Financial Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ING Groep 0 3 3 0 2.50
Mitsubishi UFJ Financial Group 0 0 4 0 3.00

Profitability

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

Net Margins Return on Equity Return on Assets
ING Groep 25.28% 8.87% 0.50%
Mitsubishi UFJ Financial Group 15.31% 6.30% 0.36%

Risk & Volatility

ING Groep has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500. Comparatively, Mitsubishi UFJ Financial Group has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500.

Institutional and Insider Ownership

3.4% of ING Groep shares are owned by institutional investors. Comparatively, 1.1% of Mitsubishi UFJ Financial Group shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

ING Groep pays an annual dividend of $0.80 per share and has a dividend yield of 6.8%. Mitsubishi UFJ Financial Group pays an annual dividend of $0.16 per share and has a dividend yield of 3.3%. ING Groep pays out 48.8% of its earnings in the form of a dividend. Mitsubishi UFJ Financial Group pays out 22.5% 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. ING Groep has increased its dividend for 3 consecutive years. ING Groep is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

ING Groep beats Mitsubishi UFJ Financial Group on 9 of the 15 factors compared between the two stocks.

About ING Groep

ING Groep N.V., a financial institution, provides various banking products and services to individuals, small and medium-sized enterprises, and mid-corporates. It operates in Retail Netherlands, Retail Belgium, Retail Germany, Retail Other, and Wholesale Banking segments. The company accepts various deposits, such as current and savings accounts; and offers business lending products, as well as consumer lending products, such as residential mortgage loans, term loans, and revolver and personal loans. It also provides mortgage, payment, savings, investment, and secured and unsecured lending products and services. In addition, the company offers specialized lending, corporate finance, and debt and equity markets solutions, as well as working capital, cash management, and trade and treasury services; and financial market, trade finance, overdraft, and foreign exchange transaction services. The company operates in the Netherlands, Belgium, North America, Latin America, Asia, Australia, and rest of Europe. ING Groep N.V. was founded in 1991 and is headquartered in Amsterdam, the Netherlands.

About Mitsubishi UFJ Financial Group

Mitsubishi UFJ Financial Group, Inc., a bank holding company, provides financial services in Japan and internationally. Its Retail Banking Business Group segment offers a range of products and services, such as bank deposits, loans, asset management and administration services, investment products, and settlement services. This segment also provides annuity, single premium whole life, flat-rate premium whole life, medical, cancer, and nursing-care insurance products; testamentary trust services; housing loans; Internet banking services; and credit cards. The company's Corporate Banking Business Group segment provides loans and fund management, and remittance and foreign exchange services; securities businesses, syndicated loans, and structured finance; investment banking services; and transaction and trust banking services. Its Trust Assets Business Group segment offers asset management and administration services for products, such as pension trusts and security trusts. This segment also provides a range of services to corporate and other pension funds comprising pension fund management and administration, advice on pension schemes, and payment of benefits to scheme members. The company's Global Business Group segment offers project finance, export credit agency, and financing through asset-backed commercial papers; and investment banking services, such as debt and equity issuance and M&A advisory services, as well as consumer finance, investment, asset management, and other financial products and services to individuals, large corporations, financial institutions, and sovereign and multinational organizations. Its Global Markets Business Group segment offers financing, hedging, and investing solutions to retail, corporate, institutional, and governmental customers; and asset and liability management services. Mitsubishi UFJ Financial Group, Inc. was founded in 1880 and is headquartered in Tokyo, Japan.

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