Contrasting Macatawa Bank (MCBC) & Its Rivals

Macatawa Bank (NASDAQ: MCBC) is one of 199 public companies in the “Commercial Banks” industry, but how does it weigh in compared to its peers? We will compare Macatawa Bank to related companies based on the strength of its analyst recommendations, profitability, risk, dividends, valuation, earnings and institutional ownership.

Insider & Institutional Ownership

28.7% of Macatawa Bank shares are held by institutional investors. Comparatively, 47.3% of shares of all “Commercial Banks” companies are held by institutional investors. 8.7% of Macatawa Bank shares are held by insiders. Comparatively, 11.8% of shares of all “Commercial Banks” companies are held by 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.

Profitability

This table compares Macatawa Bank and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Macatawa Bank 24.64% 10.84% 1.03%
Macatawa Bank Competitors 20.52% 8.72% 0.93%

Dividends

Macatawa Bank pays an annual dividend of $0.20 per share and has a dividend yield of 2.0%. Macatawa Bank pays out 37.7% of its earnings in the form of a dividend. As a group, “Commercial Banks” companies pay a dividend yield of 1.8% and pay out 35.5% of their earnings in the form of a dividend.

Earnings & Valuation

This table compares Macatawa Bank and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Macatawa Bank $71.57 million $15.95 million 19.04
Macatawa Bank Competitors $343.96 million $72.97 million 21.37

Macatawa Bank’s peers have higher revenue and earnings than Macatawa Bank. Macatawa Bank is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

Macatawa Bank has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500. Comparatively, Macatawa Bank’s peers have a beta of 0.75, meaning that their average share price is 25% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Macatawa Bank and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Macatawa Bank 0 1 0 0 2.00
Macatawa Bank Competitors 365 2888 2332 67 2.37

Macatawa Bank currently has a consensus price target of $10.00, suggesting a potential downside of 0.89%. As a group, “Commercial Banks” companies have a potential upside of 2.85%. Given Macatawa Bank’s peers stronger consensus rating and higher possible upside, analysts clearly believe Macatawa Bank has less favorable growth aspects than its peers.

Summary

Macatawa Bank peers beat Macatawa Bank on 10 of the 15 factors compared.

Macatawa Bank Company Profile

Macatawa Bank Corporation is a bank holding company. The Company, through its subsidiary, Macatawa Bank (the Bank), offers a range of commercial and personal banking services, including checking, savings and certificates of deposit accounts, cash management, safe deposit boxes, trust services and commercial, mortgage and consumer loans. The Bank is a Michigan chartered bank with depository accounts insured by the Federal Deposit Insurance Corporation. Its other services include automated teller machines (ATMs), Internet banking, telephone banking and debit cards. The Bank provides various brokerage services, including discount brokerage through Infinex, personal financial planning and consultation regarding mutual funds. As of December 31, 2016, the Bank operated 26 full service branch offices providing a range of commercial and consumer banking and trust services in Kent County, Ottawa County, and northern Allegan County, Michigan.

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