MBWM vs. MCBS, GSBC, FCBC, HBT, EGBN, UVSP, CPF, HBNC, BFST, and IBCP
Should you be buying Mercantile Bank stock or one of its competitors? The main competitors of Mercantile Bank include MetroCity Bankshares (MCBS), Great Southern Bancorp (GSBC), First Community Bankshares (FCBC), HBT Financial (HBT), Eagle Bancorp (EGBN), Univest Financial (UVSP), Central Pacific Financial (CPF), Horizon Bancorp (HBNC), Business First Bancshares (BFST), and Independent Bank (IBCP). These companies are all part of the "state commercial banks" industry.
Mercantile Bank (NASDAQ:MBWM) and MetroCity Bankshares (NASDAQ:MCBS) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, community ranking, earnings, analyst recommendations, dividends, profitability, media sentiment, institutional ownership and valuation.
Mercantile Bank has a net margin of 25.58% compared to MetroCity Bankshares' net margin of 23.26%. Mercantile Bank's return on equity of 16.39% beat MetroCity Bankshares' return on equity.
Mercantile Bank pays an annual dividend of $1.40 per share and has a dividend yield of 3.5%. MetroCity Bankshares pays an annual dividend of $0.80 per share and has a dividend yield of 3.1%. Mercantile Bank pays out 27.1% of its earnings in the form of a dividend. MetroCity Bankshares pays out 40.6% 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. Mercantile Bank is clearly the better dividend stock, given its higher yield and lower payout ratio.
In the previous week, Mercantile Bank's average media sentiment score of 0.00 equaled MetroCity Bankshares'average media sentiment score.
Mercantile Bank has higher revenue and earnings than MetroCity Bankshares. Mercantile Bank is trading at a lower price-to-earnings ratio than MetroCity Bankshares, indicating that it is currently the more affordable of the two stocks.
Mercantile Bank has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, MetroCity Bankshares has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500.
58.6% of Mercantile Bank shares are held by institutional investors. Comparatively, 25.3% of MetroCity Bankshares shares are held by institutional investors. 3.1% of Mercantile Bank shares are held by insiders. Comparatively, 27.5% of MetroCity Bankshares shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Mercantile Bank currently has a consensus price target of $47.00, suggesting a potential upside of 17.82%. MetroCity Bankshares has a consensus price target of $28.00, suggesting a potential upside of 8.36%. Given Mercantile Bank's stronger consensus rating and higher possible upside, equities research analysts clearly believe Mercantile Bank is more favorable than MetroCity Bankshares.
Mercantile Bank received 291 more outperform votes than MetroCity Bankshares when rated by MarketBeat users. Likewise, 58.97% of users gave Mercantile Bank an outperform vote while only 47.37% of users gave MetroCity Bankshares an outperform vote.
Summary
Mercantile Bank beats MetroCity Bankshares on 15 of the 18 factors compared between the two stocks.
Get Mercantile Bank News Delivered to You Automatically
Sign up to receive the latest news and ratings for MBWM and its competitors with MarketBeat's FREE daily newsletter.
This chart shows the number of new MarketBeat users adding MBWM 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 NASDAQ 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.
Mercantile Bank Competitors List
Related Companies and Tools
