Analyzing MB Financial (MBFI) and Washington Banking (WBCO)

Washington Banking (NASDAQ: WBCO) and MB Financial (NASDAQ:MBFI) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, earnings, risk and institutional ownership.

Insider & Institutional Ownership

76.5% of MB Financial shares are held by institutional investors. 7.1% of MB Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings for Washington Banking and MB Financial, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Washington Banking 0 0 0 0 N/A
MB Financial 0 5 2 0 2.29

MB Financial has a consensus price target of $49.00, suggesting a potential upside of 4.34%.

Dividends

MB Financial pays an annual dividend of $0.84 per share and has a dividend yield of 1.8%. Washington Banking does not pay a dividend. MB Financial pays out 35.7% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Washington Banking and MB Financial’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Washington Banking N/A N/A N/A N/A N/A
MB Financial $932.08 million 4.23 $174.13 million $2.35 19.98

MB Financial has higher revenue and earnings than Washington Banking.

Profitability

This table compares Washington Banking and MB Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Washington Banking N/A N/A N/A
MB Financial 20.21% 8.40% 1.08%

Summary

MB Financial beats Washington Banking on 8 of the 9 factors compared between the two stocks.

Washington Banking Company Profile

Washington Banking Company is a bank holding company. The Company’s primary business is conducted by its wholly owned subsidiary, Whidbey Island Bank (the Bank). The business of the Bank, which is focused in the northern area of Western Washington, consists primarily of attracting deposits from the general public and originating loans. Whidbey Island Bank conducts a full-service, community, commercial banking business. The Bank also offers nondeposit managed investment products and services, which are not Federal Deposit Insurance Corporation (FDIC) insured. These programs are provided through the investment advisory companies Elliott Cove Capital Management LLC and DFC Services & DFC Insurance Services. Another nondeposit product offered through the Bank, which is not FDIC insured, is a sweep investment option available through a brokerage account.

MB Financial Company Profile

MB Financial, Inc. (MB Financial) is a financial holding company. The Company’s segments include banking, leasing and mortgage banking. As of December 31, 2016, the Company’s primary market was the Chicago metropolitan area, in which the Company operated 95 banking offices through its bank subsidiary, MB Financial Bank, N.A. (MB Financial Bank). Through MB Financial Bank, the Company offers a range of financial services to small and middle market businesses, and individuals in the markets that the Company serves. MB Financial Bank’s subsidiaries include LaSalle Systems Leasing, Inc. (LaSalle), Celtic Leasing Corp. (Celtic) and MB Equipment Finance, LLC, (MB Equipment Finance). MB Financial Bank also has a majority owned subsidiary with operating activities, Cedar Hill Associates, LLC (Cedar Hill). The Company operates four primary lines of business within its banking segment: commercial banking, lease banking, retail banking and wealth management.

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