Financial Review: Merchants Bancorp (MBIN) vs. The Competition

Merchants Bancorp (NASDAQ: MBIN) is one of 201 public companies in the “Commercial Banks” industry, but how does it weigh in compared to its rivals? We will compare Merchants Bancorp to similar companies based on the strength of its earnings, institutional ownership, dividends, valuation, analyst recommendations, profitability and risk.

Profitability

This table compares Merchants Bancorp and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Merchants Bancorp N/A N/A N/A
Merchants Bancorp Competitors 20.47% 8.68% 0.93%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Merchants Bancorp and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Merchants Bancorp 0 0 4 0 3.00
Merchants Bancorp Competitors 508 3090 2477 87 2.35

Merchants Bancorp presently has a consensus price target of $21.25, indicating a potential downside of 0.93%. As a group, “Commercial Banks” companies have a potential upside of 3.60%. Given Merchants Bancorp’s rivals higher possible upside, analysts plainly believe Merchants Bancorp has less favorable growth aspects than its rivals.

Insider and Institutional Ownership

46.8% of shares of all “Commercial Banks” companies are held by institutional investors. 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 stock is poised for long-term growth.

Valuation & Earnings

This table compares Merchants Bancorp and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Merchants Bancorp $101.44 million $33.12 million 14.79
Merchants Bancorp Competitors $338.81 million $71.86 million 22.30

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

Dividends

Merchants Bancorp pays an annual dividend of $0.20 per share and has a dividend yield of 0.9%. Merchants Bancorp pays out 13.8% 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 35.2% of their earnings in the form of a dividend.

Summary

Merchants Bancorp rivals beat Merchants Bancorp on 11 of the 14 factors compared.

About Merchants Bancorp

Merchants Bancorp is a diversified bank holding bank. The Bank operate multiple lines of business with a focus on FHA multi-family housing and healthcare facility financing and servicing, mortgage warehouse financing, retail and correspondent residential mortgage banking, agricultural lending and traditional community banking. The Bank operates in three primary segments: Multi-family Mortgage Banking, Mortgage Warehousing, and Banking. The Multi-family Mortgage Banking segment originates and services government sponsored mortgages for multi-family and healthcare facilities. The Mortgage Warehousing segment funds agency eligible residential loans from origination or purchase to sale in the secondary market, as well as commercial loans to non-depository financial institutions. The Banking segment provides a wide range of financial products and services to consumers and businesses, including commercial, commercial real estate, mortgage and other consumer loan products.

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