Head to Head Comparison: M&T Bank (MTB) & ConnectOne Bancorp (NASDAQ:CNOB)

M&T Bank (NYSE: MTB) and ConnectOne Bancorp (NASDAQ:CNOB) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, valuation, earnings, dividends and profitability.

Volatility & Risk

M&T Bank has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, ConnectOne Bancorp has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500.

Earnings & Valuation

This table compares M&T Bank and ConnectOne Bancorp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
M&T Bank $5.72 billion 4.70 $1.32 billion $8.66 20.61
ConnectOne Bancorp $171.16 million 5.33 $31.08 million $0.95 30.00

M&T Bank has higher revenue and earnings than ConnectOne Bancorp. M&T Bank is trading at a lower price-to-earnings ratio than ConnectOne Bancorp, indicating that it is currently the more affordable of the two stocks.

Dividends

M&T Bank pays an annual dividend of $3.00 per share and has a dividend yield of 1.7%. ConnectOne Bancorp pays an annual dividend of $0.30 per share and has a dividend yield of 1.1%. M&T Bank pays out 34.6% of its earnings in the form of a dividend. ConnectOne Bancorp pays out 31.6% 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.

Analyst Ratings

This is a summary of recent ratings for M&T Bank and ConnectOne Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
M&T Bank 2 12 4 0 2.11
ConnectOne Bancorp 0 0 2 0 3.00

M&T Bank presently has a consensus price target of $170.81, suggesting a potential downside of 4.32%. ConnectOne Bancorp has a consensus price target of $31.25, suggesting a potential upside of 9.65%. Given ConnectOne Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe ConnectOne Bancorp is more favorable than M&T Bank.

Insider and Institutional Ownership

77.7% of M&T Bank shares are owned by institutional investors. Comparatively, 68.6% of ConnectOne Bancorp shares are owned by institutional investors. 3.2% of M&T Bank shares are owned by insiders. Comparatively, 7.6% of ConnectOne Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares M&T Bank and ConnectOne Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
M&T Bank 23.97% 9.52% 1.18%
ConnectOne Bancorp 16.97% 9.64% 1.14%

Summary

M&T Bank beats ConnectOne Bancorp on 9 of the 16 factors compared between the two stocks.

About M&T Bank

M&T Bank Corporation (M&T) is a bank holding company. As of December 31, 2016, M&T had two bank subsidiaries: Manufacturers and Traders Trust Company (M&T Bank) and Wilmington Trust, National Association (Wilmington Trust, N.A.). The Company, along with its subsidiaries, offers a range of retail and commercial banking, trust and wealth management, and investment services. Its segments are Business Banking, which provides a range of services to small businesses and professionals; Commercial Banking, which provides a range of credit products and banking services; Commercial Real Estate, which provides credit and deposit services; Discretionary Portfolio, which includes investment and trading account securities, residential real estate loans and other assets, and short-term and long-term borrowed funds; Residential Mortgage Banking, which originates and services residential mortgage loans, and Retail Banking, which services to consumers through various delivery channels.

About ConnectOne Bancorp

ConnectOne Bancorp, Inc. is a bank holding company of ConnectOne Bank (the Bank). The Bank is a community-based, full-service New Jersey-chartered commercial bank. The Bank offers a range of deposit and loan products. In addition, to attract the business of consumer and business customers, it also provides an array of other banking services. Products and services provided include personal and business checking accounts, retirement accounts, money market accounts, time and savings accounts, credit cards, wire transfers, access to automated teller services, Internet banking, Treasury Direct, automated clearing house (ACH) origination, lockbox services and mobile banking by phone. In addition, it offers safe deposit boxes. The Bank also offers remote deposit capture banking for both retail and business customers. It offers a range of deposit and loan products and services to the general public and, in particular, to small and mid-sized businesses, local professionals and individuals.

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