Head-To-Head Review: Mizuho Financial Group (NYSE:MFG) versus Norwood Financial (NASDAQ:NWFL)

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

Institutional and Insider Ownership

3.3% of Mizuho Financial Group shares are held by institutional investors. Comparatively, 28.1% of Norwood Financial shares are held by institutional investors. 0.0% of Mizuho Financial Group shares are held by company insiders. Comparatively, 8.1% of Norwood Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Mizuho Financial Group has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500. Comparatively, Norwood Financial has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Mizuho Financial Group and Norwood Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mizuho Financial Group	0	0	1	0	3.00
Norwood Financial	0	2	1	0	2.33

Norwood Financial has a consensus target price of $37.00, suggesting a potential upside of 2.29%. Given Norwood Financial’s higher probable upside, analysts plainly believe Norwood Financial is more favorable than Mizuho Financial Group.

Valuation and Earnings

This table compares Mizuho Financial Group and Norwood Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mizuho Financial Group	$4,539.49 billion	0.03	$7.64 billion	$0.82	12.40
Norwood Financial	$136.15 million	2.90	$27.75 million	$3.09	11.71

Mizuho Financial Group has higher revenue and earnings than Norwood Financial. Norwood Financial 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.

Dividends

Mizuho Financial Group pays an annual dividend of $0.14 per share and has a dividend yield of 1.4%. Norwood Financial pays an annual dividend of $1.28 per share and has a dividend yield of 3.5%. Mizuho Financial Group pays out 17.1% of its earnings in the form of a dividend. Norwood Financial pays out 41.4% 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. Norwood Financial has raised its dividend for 7 consecutive years. Norwood Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mizuho Financial Group	17.15%	12.82%	0.49%
Norwood Financial	19.67%	13.53%	1.34%

Summary

Norwood Financial beats Mizuho Financial Group on 10 of the 16 factors compared between the two stocks.

About Mizuho Financial Group

Mizuho Financial Group is a Japan-based financial services holding company headquartered in Tokyo. Its businesses serve individuals, companies, financial institutions and public-sector organizations through banking, trust banking, securities and other financial services. The group offers services that include deposits, lending, payments, foreign exchange, securities underwriting and trading, investment banking, trust services and asset management. Its main operating companies include Mizuho Bank, Mizuho Trust & Banking and Mizuho Securities.

About Norwood Financial

Norwood Financial Corporation is a bank holding company headquartered in Honesdale, Pennsylvania. Its principal subsidiary, Wayne Bank, provides community banking services to individuals, businesses and organizations. Wayne Bank offers deposit accounts, consumer and commercial loans, mortgages, and other lending services, along with digital banking. The company also provides trust and wealth management services. Through its branch network, Norwood Financial serves communities in northeastern Pennsylvania and parts of New York.