Guaranty Bancshares (NASDAQ:GNTY – Get Rating) and Mizuho Financial Group (NYSE:MFG – Get Rating) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, risk, dividends and institutional ownership.
Insider and Institutional Ownership
22.2% of Guaranty Bancshares shares are owned by institutional investors. Comparatively, 1.7% of Mizuho Financial Group shares are owned by institutional investors. 26.6% of Guaranty Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This table compares Guaranty Bancshares and Mizuho Financial Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Mizuho Financial Group||9.83%||4.38%||0.18%|
Volatility and Risk
Guaranty Bancshares pays an annual dividend of $0.88 per share and has a dividend yield of 2.4%. Mizuho Financial Group pays an annual dividend of $0.09 per share and has a dividend yield of 3.8%. Guaranty Bancshares pays out 26.8% of its earnings in the form of a dividend. Mizuho Financial Group pays out 30.0% 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. Guaranty Bancshares has raised its dividend for 5 consecutive years.
This is a breakdown of recent recommendations and price targets for Guaranty Bancshares and Mizuho Financial Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Mizuho Financial Group||0||2||0||0||2.00|
Guaranty Bancshares presently has a consensus price target of $43.50, suggesting a potential upside of 20.23%. Given Guaranty Bancshares’ stronger consensus rating and higher possible upside, research analysts clearly believe Guaranty Bancshares is more favorable than Mizuho Financial Group.
Earnings & Valuation
This table compares Guaranty Bancshares and Mizuho Financial Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Guaranty Bancshares||$127.13 million||3.44||$39.81 million||$3.28||11.03|
|Mizuho Financial Group||$35.30 billion||0.85||-$932.03 million||$0.30||7.87|
Guaranty Bancshares has higher earnings, but lower revenue than Mizuho Financial Group. Mizuho Financial Group is trading at a lower price-to-earnings ratio than Guaranty Bancshares, indicating that it is currently the more affordable of the two stocks.
Guaranty Bancshares beats Mizuho Financial Group on 14 of the 17 factors compared between the two stocks.
About Guaranty Bancshares
Guaranty Bancshares, Inc. operates as the bank holding company for Guaranty Bank & Trust, N.A. that provides a range of commercial and consumer banking products and services for small- and medium-sized businesses, professionals, and individuals. The company offers checking and savings, money market, and business accounts, as well as certificates of deposit; and commercial and industrial, construction and development, 1-4 family residential, commercial real estate, farmland and agricultural, multi-family residential, and consumer loans. It also provides trustee, custodial and escrow, investment management, retirement plan, ATM, night depository, direct deposit, and cashier's check services, as well as online, mobile, and telephone banking services; debit cards; letters of credit; and treasury management services, including wire transfer, positive pay, remote deposit capture, and automated clearinghouse services. As of December 31, 2021, it operated 32 full-service banking locations in East Texas, Central Texas, the Dallas/Fort Worth metropolitan statistical area (MSA) and the Houston MSA. The company was founded in 1913 and is headquartered in Addison, Texas.
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 five segments: Retail & Business Banking Company, Corporate & Institutional Company, Global Corporate Company, Global Markets Company, and Asset Management Company. 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 financial solutions, such as bonds, mergers and acquisitions advisory, risk hedging products, 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; real estate agency 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 sales and trading services to meet needs for customers; 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, and information technology-related services. Mizuho Financial Group, Inc. was incorporated in 2003 and is headquartered in Tokyo, Japan.
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