Critical Comparison: Mizuho Financial Group (NYSE:MFG) versus Third Coast Bancshares (NASDAQ:TCBX)

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

Dividends

Third Coast Bancshares pays an annual dividend of $16.87 per share and has a dividend yield of 38.2%. Mizuho Financial Group pays an annual dividend of $0.14 per share and has a dividend yield of 1.3%. Third Coast Bancshares pays out 420.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Mizuho Financial Group pays out 17.1% of its earnings in the form of a dividend.

Institutional & Insider Ownership

36.9% of Third Coast Bancshares shares are held by institutional investors. Comparatively, 3.3% of Mizuho Financial Group shares are held by institutional investors. 10.5% of Third Coast Bancshares shares are held by insiders. Comparatively, 0.0% of Mizuho Financial Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Third Coast Bancshares and Mizuho Financial Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Third Coast Bancshares	16.30%	12.05%	1.17%
Mizuho Financial Group	17.15%	12.82%	0.49%

Earnings and Valuation

This table compares Third Coast 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
Third Coast Bancshares	$234.99 million	3.12	$47.67 million	$4.01	11.02
Mizuho Financial Group	$60.35 billion	2.24	$7.64 billion	$0.82	13.32

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

Analyst Recommendations

This is a summary of recent recommendations for Third Coast Bancshares and Mizuho Financial Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Third Coast Bancshares	0	2	4	0	2.67
Mizuho Financial Group	0	0	0	1	4.00

Third Coast Bancshares currently has a consensus price target of $47.75, indicating a potential upside of 8.07%. Given Third Coast Bancshares’ higher possible upside, research analysts plainly believe Third Coast Bancshares is more favorable than Mizuho Financial Group.

Volatility & Risk

Third Coast Bancshares has a beta of 0.32, meaning that its share price is 68% less volatile than the S&P 500. Comparatively, Mizuho Financial Group has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500.

Summary

Third Coast Bancshares beats Mizuho Financial Group on 9 of the 17 factors compared between the two stocks.

About Third Coast Bancshares

Third Coast Bancshares, Inc. operates as a bank holding company for Third Coast Bank, SSB that provides various commercial banking solutions to small and medium-sized businesses, and professionals. The company's deposit products include checking, savings, individual retirement, and money market accounts, as well as certificates of deposit. It also offers commercial and industrial loans, equipment loans, working capital lines of credit, guaranteed loans, auto finance, letters of credit, commercial and residential real estate, and construction, development, and other loans. In addition, the company provides retail and commercial online banking platforms, mobile banking apps, mortgage, treasury management solutions, merchant card services, and customer digital solutions, as well as debit and credit cards. Third Coast Bancshares, Inc. was founded in 2008 and is headquartered in Humble, 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 Retail & Business Banking Company, Corporate & Institutional Company, Global Corporate Company, Global Markets Company, Asset Management Company, and Others segments. 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 fund management, underwriting of equity and bonds, risk hedging products, etc. for corporate customers; solutions based on capital management, business strategy, and financial strategy; real estate 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 corporate finance and transaction banking srvices; sales and trading services; investment products; pension funds; and ALM and investment services, including stable capital raising and balance sheet management, as well as management of fixed income, equity, and other securities portfolios. Additionally, the company provides online banking, cash management solutions, currency transaction, trade finance, custody, yen correspondence settlement, and research and consulting services; trust, securitization and structured finance, and stock transfers; and private banking and information technology-related services. Mizuho Financial Group, Inc. was founded in 2000 and is headquartered in Tokyo, Japan.