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 investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, community ranking, institutional ownership, media sentiment and risk.
Royal Bank of Canada pays an annual dividend of $4.08 per share and has a dividend yield of 3.9%. Mitsubishi UFJ Financial Group pays an annual dividend of $0.22 per share and has a dividend yield of 2.1%. Royal Bank of Canada pays out 51.4% of its earnings in the form of a dividend. Mitsubishi UFJ Financial Group pays out 25.3% 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 0.86, meaning that its stock price is 14% less volatile than the S&P 500. Comparatively, Mitsubishi UFJ Financial Group has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500.
Royal Bank of Canada has higher revenue and earnings 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 518 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.
In the previous week, Royal Bank of Canada had 5 more articles in the media than Mitsubishi UFJ Financial Group. MarketBeat recorded 7 mentions for Royal Bank of Canada and 2 mentions for Mitsubishi UFJ Financial Group. Mitsubishi UFJ Financial Group's average media sentiment score of 1.70 beat Royal Bank of Canada's score of 1.35 indicating that Mitsubishi UFJ Financial Group is being referred to more favorably in the news media.
Royal Bank of Canada presently has a consensus target price of $137.67, suggesting a potential upside of 30.89%. Given Royal Bank of Canada's higher probable upside, analysts clearly believe Royal Bank of Canada is more favorable than Mitsubishi UFJ Financial Group.
Mitsubishi UFJ Financial Group has a net margin of 12.68% compared to Royal Bank of Canada's net margin of 12.43%. Royal Bank of Canada's return on equity of 14.74% beat Mitsubishi UFJ Financial Group's return on equity.
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 insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Royal Bank of Canada beats Mitsubishi UFJ Financial Group on 15 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.
This 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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