Analyzing Xenith Bankshares (XBKS) & MainSource Financial Group (NASDAQ:MSFG)

Xenith Bankshares (NASDAQ: XBKS) and MainSource Financial Group (NASDAQ:MSFG) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.

Earnings & Valuation

This table compares Xenith Bankshares and MainSource Financial Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Xenith Bankshares $103.54 million 7.99 $57.04 million $1.03 34.60
MainSource Financial Group $180.94 million 5.60 $38.32 million $1.78 22.26

Xenith Bankshares has higher earnings, but lower revenue than MainSource Financial Group. MainSource Financial Group is trading at a lower price-to-earnings ratio than Xenith Bankshares, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Xenith Bankshares and MainSource Financial Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Xenith Bankshares 18.26% 5.55% 0.82%
MainSource Financial Group 21.86% 10.65% 1.20%

Risk and Volatility

Xenith Bankshares has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, MainSource Financial Group has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Xenith Bankshares and MainSource Financial Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Xenith Bankshares 0 2 1 0 2.33
MainSource Financial Group 0 2 0 0 2.00

Xenith Bankshares currently has a consensus price target of $28.00, indicating a potential downside of 21.44%. MainSource Financial Group has a consensus price target of $40.00, indicating a potential upside of 0.96%. Given MainSource Financial Group’s higher possible upside, analysts plainly believe MainSource Financial Group is more favorable than Xenith Bankshares.

Insider and Institutional Ownership

58.7% of Xenith Bankshares shares are owned by institutional investors. Comparatively, 58.3% of MainSource Financial Group shares are owned by institutional investors. 31.7% of Xenith Bankshares shares are owned by company insiders. Comparatively, 4.8% of MainSource Financial Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

MainSource Financial Group pays an annual dividend of $0.33 per share and has a dividend yield of 0.8%. Xenith Bankshares does not pay a dividend. MainSource Financial Group pays out 18.5% of its earnings in the form of a dividend.

Summary

Xenith Bankshares beats MainSource Financial Group on 9 of the 16 factors compared between the two stocks.

About Xenith Bankshares

Xenith Bankshares, Inc., formerly Hampton Roads Bankshares, Inc., is a bank holding company for Xenith Bank. Xenith Bank is a commercial bank specifically targeting the banking needs of middle market and small businesses, local real estate developers and investors, and retail banking clients. Xenith Bank’s regional area of operations spans from Baltimore, Maryland, to Raleigh and eastern North Carolina, complementing its presence in greater Washington, D.C., greater Richmond, Virginia, and greater Hampton Roads, Virginia. Its service and products consist primarily of taking deposits from, and making loans to, its target customers within its target markets. It offers other banking related specialized products and services to its customers, such as travelers’ checks, coin counters, wire services, online banking and safe deposit box services. Additionally, it offers commercial customers various cash management products, including remote deposit.

About MainSource Financial Group

MainSource Financial Group, Inc. is a bank holding company. The Company operates a banking subsidiary, MainSource Bank (the Bank), an Indiana state-chartered bank. Through the Bank, the Company offers a range of financial services, including accepting time and transaction deposits; making consumer, commercial, agribusiness and real estate mortgage loans; renting safe deposit facilities; providing personal and corporate trust services, and providing other corporate services, such as letters of credit and repurchase agreements. The Bank offers various loans, such as commercial loans, commercial real estate loans, residential loans and consumer loans. Commercial loans include secured and unsecured loans, including real estate loans, to individuals and companies and to governmental units within the market area of the Bank. It offers various deposits, which include demand, interest bearing demand, savings/money markets and certificates of deposit.

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