Financial Comparison: Mitsubishi UFJ Financial Group (MUFG) vs. United Overseas Bank (UOVEY)

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

Volatility & Risk

Mitsubishi UFJ Financial Group has a beta of 1.74, meaning that its share price is 74% more volatile than the S&P 500. Comparatively, United Overseas Bank has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.

Valuation & Earnings

This table compares Mitsubishi UFJ Financial Group and United Overseas Bank’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mitsubishi UFJ Financial Group $54.79 billion 1.44 $11.05 billion $0.71 8.37
United Overseas Bank $8.99 billion 3.73 $2.46 billion $2.87 14.06

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

Profitability

This table compares Mitsubishi UFJ Financial Group and United Overseas Bank’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mitsubishi UFJ Financial Group 16.35% 6.56% 0.36%
United Overseas Bank 32.33% 10.40% 1.07%

Institutional & Insider Ownership

0.9% of Mitsubishi UFJ Financial Group shares are owned by institutional investors. Comparatively, 0.5% of United Overseas Bank shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Mitsubishi UFJ Financial Group pays an annual dividend of $0.13 per share and has a dividend yield of 2.2%. United Overseas Bank pays an annual dividend of $1.35 per share and has a dividend yield of 3.3%. Mitsubishi UFJ Financial Group pays out 18.3% of its earnings in the form of a dividend. United Overseas Bank pays out 47.0% 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.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Mitsubishi UFJ Financial Group and United Overseas Bank, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mitsubishi UFJ Financial Group 0 0 1 0 3.00
United Overseas Bank 0 0 0 0 N/A

Summary

Mitsubishi UFJ Financial Group beats United Overseas Bank on 7 of the 13 factors compared between the two stocks.

Mitsubishi UFJ Financial Group Company Profile

Mitsubishi UFJ Financial Group, Inc., a bank holding company, provides financial services in Japan and internationally. Its Retail Banking Business Group segment offers banking products and services, including financial consulting services; deposit products, such as non-interest-bearing deposit accounts; asset management and administration services; trust products; and other investment products. 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; derivatives, securitization, 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 pension funds comprising pension fund management and administration, advice on pension schemes, and payment to beneficiaries. 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/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 clients; and asset and liability management services. Mitsubishi UFJ Financial Group, Inc. was founded in 1880 and is headquartered in Tokyo, Japan.

United Overseas Bank Company Profile

United Overseas Bank Limited provides financial products and services. The company's Group Retail segment provides deposits, insurance, card, wealth management, investment, and loan and trade financing products for personal and small enterprise customers. Its Group Wholesale Banking segment provides financing, trade, cash management, capital markets solutions, and advisory and treasury products and services. The company's Global Markets segment offers foreign exchange, interest rate, credit, commodities, equities, and structured investment products; and manages funds and liquidity. Its Other segment provides investment management, property, and insurance services. The company has a network of approximately 500 offices in 19 countries and territories in the Asia Pacific, Europe, and North America. The company was formerly known as United Chinese Bank and changed its name to United Overseas Bank Limited in 1965. United Overseas Bank Limited was founded in 1935 and is headquartered in Singapore.

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