Mizuho Financial Group, Inc. (MFG) vs Nu Holdings Ltd. (NU)

Mizuho Financial Group, Inc. and Nu Holdings Ltd. are both Banks Regional companies. Mizuho Financial Group, Inc. is the larger, with a market value of $131.7B against $65.9B — 2.0× the size. Mizuho Financial Group, Inc. trades at the lower P/E: 2.5× against 18.4×. Nu Holdings Ltd. grew revenue faster over the last twelve months: 50.5% against 23.5%. Nu Holdings Ltd. has the higher net margin (18.7% vs 16.8%) and the higher return on invested capital (62.5% vs 0.00%). Across the 18 metrics below, Mizuho Financial Group, Inc. leads on 9 and Nu Holdings Ltd. on 9.

Valuation

Metric MFG NU Banks Regional median
P/E 2.52 18.36 12.15
P/S 0.38 3.41 2.37
P/B 0.18 4.98 1.21
Price to free cash flow n/m n/m 10.80
EV/EBITDA n/m 70.20 —
EV/Sales (16.85) 2.95 2.27
Earnings yield 39.76% 5.45% 8.11%
Free cash flow yield (458.18%) (2.53%) 8.98%

Profitability

Metric MFG NU Banks Regional median
Gross margin 55.91% 71.67% 69.57%
Operating margin 0.00% 0.00% 0.00%
Net margin 16.78% 18.65% 18.66%
Free cash flow margin 0.00% (8.63%) 21.18%
Return on equity 8.42% 31.60% 10.64%
Return on assets 0.32% 4.96% 1.13%
Return on invested capital 0.00% 62.53% 8.33%

Growth

Metric MFG NU Banks Regional median
Revenue growth (TTM) 23.48% 50.52% 6.61%
EPS growth (last fiscal year) 141.25% 45.00% —
Revenue growth, 5-year CAGR 11.33% 84.54% 12.30%
Net income growth, 5-year CAGR 6.92% 0.00% 9.71%

Health

Metric MFG NU Banks Regional median
Debt to equity 1.53 0.35 0.22
Current ratio 0.93 0.55 0.94
Net debt to EBITDA 0.00 0.00 0.00

Dividend

Metric MFG NU Banks Regional median
Dividend yield 3.77% — 3.75%
Payout ratio 0.34 0.00 0.27

Size

Metric MFG NU Banks Regional median
Market cap 131.65b 65.90b 921.07m

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