Comparing Mizuho Financial Group (NYSE:MFG) & First Commonwealth Financial (NYSE:FCF)

First Commonwealth Financial (NYSE:FCF) and Mizuho Financial Group (NYSE:MFG) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Institutional & Insider Ownership

72.6% of First Commonwealth Financial shares are owned by institutional investors. Comparatively, 3.3% of Mizuho Financial Group shares are owned by institutional investors. 2.2% of First Commonwealth Financial shares are owned by company insiders. Comparatively, 0.0% of Mizuho Financial Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
First Commonwealth Financial	20.38%	10.36%	1.22%
Mizuho Financial Group	7.85%	8.56%	0.33%

Dividends

First Commonwealth Financial pays an annual dividend of $0.52 per share and has a dividend yield of 3.4%. Mizuho Financial Group pays an annual dividend of $0.12 per share and has a dividend yield of 2.1%. First Commonwealth Financial pays out 37.4% 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.

Analyst Ratings

This is a breakdown of current ratings and price targets for First Commonwealth Financial and Mizuho Financial Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Commonwealth Financial	0	3	3	0	2.50
Mizuho Financial Group	0	0	0	0	0.00

First Commonwealth Financial currently has a consensus target price of $19.58, suggesting a potential upside of 26.38%. Given First Commonwealth Financial’s stronger consensus rating and higher possible upside, equities analysts clearly believe First Commonwealth Financial is more favorable than Mizuho Financial Group.

Valuation & Earnings

This table compares First Commonwealth Financial and Mizuho Financial Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Commonwealth Financial	$478.12 million	3.30	$142.57 million	$1.39	11.15
Mizuho Financial Group	$3,603.96 billion	0.02	$6.30 billion	$0.40	14.19

Mizuho Financial Group has higher revenue and earnings than First Commonwealth Financial. First Commonwealth 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.

Volatility and Risk

First Commonwealth Financial has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, Mizuho Financial Group has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500.

Summary

First Commonwealth Financial beats Mizuho Financial Group on 12 of the 16 factors compared between the two stocks.

About First Commonwealth Financial

First Commonwealth Financial Corporation, a financial holding company, provides various consumer and commercial banking services in the United States. Its consumer services include personal checking accounts, interest-earning checking accounts, savings and health savings accounts, insured money market accounts, debit cards, investment certificates, fixed and variable rate certificates of deposit, mortgage loans, secured and unsecured installment loans, construction and real estate loans, safe deposit facilities, credit cards, credit lines with overdraft checking protection, IRA accounts, and automated teller machine (atm) services, as well as internet, mobile, and telephone banking services. The company's commercial banking services comprise commercial lending, business checking accounts, online account management services, payroll direct deposits, commercial cash management services, and repurchase agreements, as well as ACH origination services. In addition, it offers various trust and asset management services; auto, home, and business insurance, as well as term life insurance; and annuities, mutual funds, and stock and bond brokerage services through a broker-dealer and insurance brokers. The company was founded in 1934 and is headquartered in Indiana, Pennsylvania.

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.