Head to Head Review: Monarch Financial (NASDAQ:MNRK) & Its Rivals

Monarch Financial (NASDAQ: MNRK) is one of 8 public companies in the “Banks – NEC” industry, but how does it compare to its competitors? We will compare Monarch Financial to similar businesses based on the strength of its valuation, analyst recommendations, earnings, dividends, profitability, risk and institutional ownership.

Earnings and Valuation

This table compares Monarch Financial and its competitors revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Monarch Financial N/A N/A 14.67
Monarch Financial Competitors $101.03 million $17.15 million 130.26

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

Dividends

Monarch Financial pays an annual dividend of $0.36 per share and has a dividend yield of 1.9%. Monarch Financial pays out 28.6% of its earnings in the form of a dividend. As a group, “Banks – NEC” companies pay a dividend yield of 1.5% and pay out 26.4% of their earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current recommendations for Monarch Financial and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Monarch Financial 0 0 0 0 N/A
Monarch Financial Competitors 11 123 69 0 2.29

As a group, “Banks – NEC” companies have a potential upside of 16.36%. Given Monarch Financial’s competitors higher possible upside, analysts plainly believe Monarch Financial has less favorable growth aspects than its competitors.

Profitability

This table compares Monarch Financial and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Monarch Financial 12.93% 13.64% 1.39%
Monarch Financial Competitors 22.87% 11.57% 1.28%

Insider & Institutional Ownership

53.6% of shares of all “Banks – NEC” companies are held by institutional investors. 10.1% of shares of all “Banks – NEC” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Monarch Financial has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500. Comparatively, Monarch Financial’s competitors have a beta of 1.03, suggesting that their average stock price is 3% more volatile than the S&P 500.

Summary

Monarch Financial competitors beat Monarch Financial on 8 of the 11 factors compared.

Monarch Financial Company Profile

Monarch Financial Holdings, Inc. (Monarch) is a Virginia-chartered bank holding company. The Company is engaged in commercial and retail banking; investment and insurance sales, and mortgage origination and brokerage. The Company conducts its operations through its subsidiary, Monarch Bank (the Bank), and its two subsidiaries, Monarch Investment, LLC and Monarch Capital, LLC. The Company operates through two segments: community banking (banking) and retail mortgage banking services (mortgage banking). The Company’s community banking segment involves making loans to and generating deposits from individuals and businesses. Monarch’s mortgage banking services consist of originating residential loans and subsequently selling them to investors. Monarch also does business in various markets, such as OBX Bank, Monarch Bank Private Wealth, Monarch Mortgage and under various names through joint ventures with other partners.

Receive News & Ratings for Monarch Financial Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Monarch Financial and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply