SMFG - Mitsubishi UFJ Financial Group: We Prefer Sumitomo Mitsui Financial Group From A Shareholder Return Perspective
- We conclude that MUFG's ability to increasingly allocate capital to total shareholder returns is relatively low compared to SMFG.
- MUFG's business model has overseas exposure which brings a more volatile earnings profile. Capital allocation also looks prioritized to overseas expansion.
- With MUFG's shares on a 4.4% dividend yield versus SMFG on 5.2%, we prefer SMFG. We are neutral on MUFG.
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Mitsubishi UFJ Financial Group: We Prefer Sumitomo Mitsui Financial Group From A Shareholder Return Perspective