Mitsubishi UFJ Financial Group (NYSE:MUFG) vs. HBT Financial (NASDAQ:HBT) Head to Head Survey

Mitsubishi UFJ Financial Group (NYSE:MUFG) and HBT Financial (NASDAQ:HBT) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, analyst recommendations, risk, valuation, dividends and institutional ownership.

Volatility & Risk

Mitsubishi UFJ Financial Group has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500. Comparatively, HBT Financial has a beta of 0.51, suggesting that its share price is 49% less volatile than the S&P 500.

Dividends

Mitsubishi UFJ Financial Group pays an annual dividend of $0.51 per share and has a dividend yield of 2.1%. HBT Financial pays an annual dividend of $1.00 per share and has a dividend yield of 2.7%. Mitsubishi UFJ Financial Group pays out 33.3% of its earnings in the form of a dividend. HBT Financial pays out 42.9% 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. HBT Financial has raised its dividend for 5 consecutive years. HBT Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares Mitsubishi UFJ Financial Group and HBT Financial”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mitsubishi UFJ Financial Group	$97.13 billion	2.94	$11.41 billion	$1.53	15.75
HBT Financial	$293.97 million	4.53	$77.01 million	$2.33	15.70

Mitsubishi UFJ Financial Group has higher revenue and earnings than HBT Financial. HBT Financial is trading at a lower price-to-earnings ratio than Mitsubishi UFJ Financial Group, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mitsubishi UFJ Financial Group	17.63%	12.30%	0.66%
HBT Financial	23.44%	13.46%	1.55%

Analyst Recommendations

This is a breakdown of recent recommendations for Mitsubishi UFJ Financial Group and HBT Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mitsubishi UFJ Financial Group	0	2	2	1	2.80
HBT Financial	0	3	4	0	2.57

HBT Financial has a consensus target price of $37.40, indicating a potential upside of 2.21%. Given HBT Financial’s higher probable upside, analysts clearly believe HBT Financial is more favorable than Mitsubishi UFJ Financial Group.

Institutional and Insider Ownership

13.6% of Mitsubishi UFJ Financial Group shares are held by institutional investors. Comparatively, 78.5% of HBT Financial shares are held by institutional investors. 0.0% of Mitsubishi UFJ Financial Group shares are held by company insiders. Comparatively, 51.9% of HBT Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

HBT Financial beats Mitsubishi UFJ Financial Group on 12 of the 18 factors compared between the two stocks.

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.

About HBT Financial

HBT Financial, Inc. operates as the bank holding company for Heartland Bank and Trust Company that provides business, commercial, and retail banking products and services to individuals, businesses, and municipal entities in Central and Northeastern Illinois, and Eastern Iowa. The company's deposits accounts consist of noninterest-bearing demand deposits, interest-bearing transaction accounts, money market accounts, savings accounts, certificates of deposits, health savings accounts, and individual retirement accounts. Its loan offering comprises owner and non-owner occupied commercial real estate; construction and land development and multi-family; commercial and industrial; agricultural and farmland; and one-to-four family residential loans, as well as municipal, consumer, and other loans. The company also offers wealth management services, including financial planning to consumers, trusts, and estates; trustee and custodial; investment management; corporate retirement plan consulting and administration; and retail brokerage services. In addition, it provides farmland management, and farmland sales and services; commercial checking accounts; and treasury management services, as well as originates and sells residential mortgage loans. Further, the company offers digital banking services, such as online and mobile banking, and digital payment services, as well as personal financial management tools. The company was formerly known as Heartland Bancorp, Inc. and changed its name to HBT Financial, Inc. in September 2019. HBT Financial, Inc. was founded in 1920 and is headquartered in Bloomington, Illinois.