Reviewing Mitsubishi UFJ Financial Group (NYSE:MUFG) and DBS Group (OTCMKTS:DBSDY)

DBS Group (OTCMKTS:DBSDY) and Mitsubishi UFJ Financial Group (NYSE:MUFG) are both large-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, dividends, valuation and analyst recommendations.

Earnings and Valuation

This table compares DBS Group and Mitsubishi UFJ Financial Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DBS Group	$28.07 billion	4.56	$8.37 billion	N/A	N/A
Mitsubishi UFJ Financial Group	$6,980.94 billion	0.03	$8.36 billion	$1.14	15.52

DBS Group has higher earnings, but lower revenue than Mitsubishi UFJ Financial Group.

Analyst Ratings

This is a breakdown of recent ratings for DBS Group and Mitsubishi UFJ Financial Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DBS Group	0	0	0	1	4.00
Mitsubishi UFJ Financial Group	0	1	1	1	3.00

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DBS Group	N/A	N/A	N/A
Mitsubishi UFJ Financial Group	13.87%	9.58%	0.50%

Institutional & Insider Ownership

0.2% of DBS Group shares are owned by institutional investors. Comparatively, 13.6% of Mitsubishi UFJ Financial Group shares are owned by institutional investors. 0.0% of Mitsubishi UFJ Financial Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

DBS Group has a beta of 0.53, suggesting that its share price is 47% less volatile than the S&P 500. Comparatively, Mitsubishi UFJ Financial Group has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500.

Dividends

DBS Group pays an annual dividend of $7.14 per share and has a dividend yield of 4.0%. Mitsubishi UFJ Financial Group pays an annual dividend of $0.37 per share and has a dividend yield of 2.1%. Mitsubishi UFJ Financial Group pays out 32.5% of its earnings in the form of a dividend.

Summary

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

About DBS Group

DBS Group Holdings Ltd provides commercial banking and financial services in Singapore, Hong Kong, rest of Greater China, South and Southeast Asia, and internationally. The company’s Consumer Banking/Wealth Management segment offers banking and related financial services, including current and savings accounts, fixed deposits, loans and home finance, cards, payments, investment, and insurance products for individual customers. Its Institutional Banking segment provides financial services and products for bank and non-bank financial institutions, government-linked companies, large corporates, and small and medium sized businesses. Its products and services comprise short-term working capital financing and specialized lending; cash management, trade finance, and securities and fiduciary services; treasury and markets products; and corporate finance and advisory banking, as well as capital markets solutions. The company’s Treasury Markets segment is involved in the structuring, market-making, and trading in a range of treasury products. DBS Group Holdings Ltd was founded in 1968 and is headquartered in Singapore.

About Mitsubishi UFJ Financial Group

Mitsubishi UFJ Financial Group, Inc. operates as the bank holding company, that engages in a range of financial businesses in Japan, the United States, Europe, Asia/Oceania, and internationally. It operates through seven segments: Digital Service, Retail & Commercial Banking, Japanese Corporate & Investment Banking, Global Commercial Banking, Asset Management & Investor Services, Global Corporate & Investment Banking, and Global Markets. The company offers commercial banking, trust banking, and securities products and services to retail, and small and medium-sized enterprise customers. It also provides mergers and acquisition, debt and equity issuance, financial advice, and real estate-related services; digital-based financial services; credit cards; and trust banking and securities products and services, as well as engages in the lending, fund settlement, and foreign exchange businesses. In addition, the company offers corporate banking services, such as project export credit agency finance, and financing through asset-backed commercial paper; investment and transaction banking services for corporations, financial institutions, sovereign and multinational organizations, and institutional investors; and asset management and investor services, including pension fund management and administration, pension structure advisory, beneficiary payment, and investment trust services for retail customers. Further, it provides loans, deposits, fund transfers, hedging, and investments services for retail, small and medium-sized enterprise, as well as corporate customers; financing for automotive and consumer goods; sells and trades in fixed income instruments, currencies, equities, and equities; offers investment products comprising mutual funds, structured bonds, and notes; originates and distributes of financial products; and provides insurance and treasury services. The company was founded in 1880 and is headquartered in Tokyo, Japan.