RY vs. MUFG, HDB, TD, IBN, SMFG, SAN, BMO, BBVA, ING, and CM
Should you be buying Royal Bank of Canada stock or one of its competitors? The main competitors of Royal Bank of Canada include Mitsubishi UFJ Financial Group (MUFG), HDFC Bank (HDB), Toronto-Dominion Bank (TD), ICICI Bank (IBN), Sumitomo Mitsui Financial Group (SMFG), Banco Santander (SAN), Bank of Montreal (BMO), Banco Bilbao Vizcaya Argentaria (BBVA), ING Groep (ING), and Canadian Imperial Bank of Commerce (CM). These companies are all part of the "commercial banks, not elsewhere classified" industry.
Royal Bank of Canada (NYSE:RY) and Mitsubishi UFJ Financial Group (NYSE:MUFG) are both large-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, media sentiment, profitability, earnings, institutional ownership, community ranking, valuation, dividends and risk.
45.3% of Royal Bank of Canada 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, endowments and hedge funds believe a stock is poised for long-term growth.
Mitsubishi UFJ Financial Group has a net margin of 12.68% compared to Royal Bank of Canada's net margin of 12.12%. Royal Bank of Canada's return on equity of 14.87% beat Mitsubishi UFJ Financial Group's return on equity.
Royal Bank of Canada has higher earnings, but lower revenue than Mitsubishi UFJ Financial Group. Mitsubishi UFJ Financial Group is trading at a lower price-to-earnings ratio than Royal Bank of Canada, indicating that it is currently the more affordable of the two stocks.
Royal Bank of Canada received 523 more outperform votes than Mitsubishi UFJ Financial Group when rated by MarketBeat users. However, 64.36% of users gave Mitsubishi UFJ Financial Group an outperform vote while only 55.78% of users gave Royal Bank of Canada an outperform vote.
Royal Bank of Canada currently has a consensus price target of $133.25, indicating a potential upside of 25.25%. Given Royal Bank of Canada's higher possible upside, equities analysts clearly believe Royal Bank of Canada is more favorable than Mitsubishi UFJ Financial Group.
Royal Bank of Canada pays an annual dividend of $4.08 per share and has a dividend yield of 3.8%. Mitsubishi UFJ Financial Group pays an annual dividend of $0.11 per share and has a dividend yield of 1.1%. Royal Bank of Canada pays out 50.6% of its earnings in the form of a dividend. Mitsubishi UFJ Financial Group pays out 12.6% 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.
Royal Bank of Canada has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500. Comparatively, Mitsubishi UFJ Financial Group has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500.
In the previous week, Royal Bank of Canada had 24 more articles in the media than Mitsubishi UFJ Financial Group. MarketBeat recorded 29 mentions for Royal Bank of Canada and 5 mentions for Mitsubishi UFJ Financial Group. Mitsubishi UFJ Financial Group's average media sentiment score of 1.04 beat Royal Bank of Canada's score of 0.46 indicating that Mitsubishi UFJ Financial Group is being referred to more favorably in the news media.
Summary
Royal Bank of Canada beats Mitsubishi UFJ Financial Group on 14 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding RY and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Skip ChartThis chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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