Guaranty Bancshares (GNTY) vs. MB Financial (MBFI) Head to Head Survey

MB Financial (NASDAQ:MBFI) and Guaranty Bancshares (NASDAQ:GNTY) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Risk and Volatility

MB Financial has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500. Comparatively, Guaranty Bancshares has a beta of -0.04, suggesting that its stock price is 104% less volatile than the S&P 500.

Institutional and Insider Ownership

74.0% of MB Financial shares are held by institutional investors. Comparatively, 20.9% of Guaranty Bancshares shares are held by institutional investors. 2.7% of MB Financial shares are held by insiders. Comparatively, 22.6% of Guaranty Bancshares shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

MB Financial pays an annual dividend of $0.96 per share and has a dividend yield of 2.1%. Guaranty Bancshares pays an annual dividend of $0.60 per share and has a dividend yield of 2.0%. MB Financial pays out 40.2% of its earnings in the form of a dividend. Guaranty Bancshares pays out 38.5% 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. MB Financial has raised its dividend for 6 consecutive years. MB Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for MB Financial and Guaranty Bancshares, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MB Financial 0 6 1 0 2.14
Guaranty Bancshares 0 2 0 0 2.00

MB Financial presently has a consensus target price of $47.53, indicating a potential upside of 6.46%. Guaranty Bancshares has a consensus target price of $32.50, indicating a potential upside of 9.06%. Given Guaranty Bancshares’ higher possible upside, analysts clearly believe Guaranty Bancshares is more favorable than MB Financial.

Valuation & Earnings

This table compares MB Financial and Guaranty Bancshares’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MB Financial $1.04 billion 3.62 $304.04 million $2.39 18.69
Guaranty Bancshares $86.06 million 4.14 $14.43 million $1.56 19.10

MB Financial has higher revenue and earnings than Guaranty Bancshares. MB Financial is trading at a lower price-to-earnings ratio than Guaranty Bancshares, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares MB Financial and Guaranty Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MB Financial 26.11% 7.48% 1.03%
Guaranty Bancshares 17.35% 8.95% 0.94%

Summary

MB Financial beats Guaranty Bancshares on 11 of the 17 factors compared between the two stocks.

MB Financial Company Profile

MB Financial, Inc. operates as a bank holding company for MB Financial Bank, N.A. that provides various financial services to small and middle market businesses, and individuals in the United States. The company operates through three segments: Banking, Leasing, and Mortgage Banking. The Banking segment offers commercial banking products, including working capital loans and lines of credit; accounts receivable financing; inventory and equipment financing; industrial revenue bond financing; ESOP financing; business acquisition loans; owner occupied real estate loans; asset-based loans; and financial, performance, and commercial letters of credit. Its commercial banking products also comprise deposit and treasury management products and services, such as Internet banking products, investment sweep and zero balance accounts, automated tax payments, ATM access, telephone banking, lockboxes, automated clearing house transactions, account reconciliation, controlled disbursement, information reporting, wire transfers, vault services, remote deposit capture, and checking accounts; capital markets and international banking services; and credit, deposit, and treasury management services for real estate operators and investors. In addition, this segment offers loans to equipment lessors; retail banking services; cards and bank sponsorships; and wealth management solutions. The Leasing segment provides lease originations and related services. This segment's lease portfolio consists of computer systems, satellite equipment, and medical equipment, as well as general manufacturing, industrial, construction, and transportation equipment. The Mortgage Banking segment originates and services residential mortgage loans for sale to investors. The company offers its products and services through 86 banking offices in the Chicago metropolitan area; and 129 ATMs. MB Financial, Inc. was founded in 1911 and is headquartered in Chicago, Illinois.

Guaranty Bancshares Company Profile

Guaranty Bancshares, Inc. operates as the bank holding company for Guaranty Bank & Trust, N.A. that provides a range of commercial and consumer banking products and services for small- and medium-sized businesses, professionals, and individuals. It offers various deposit products, such as checking and savings, money market, and business accounts, as well as certificates of deposit; and loan products comprising commercial and industrial, construction and development, commercial real estate, farmland, consumer, one-to-four family residential, multi-family residential, and agricultural loans. The company also provides trust, wealth management, and retirement plan services; and remote deposit capture, online and mobile banking, bank-by-mail, direct deposit, cash and treasury management, ATM, and night depository services, as well as debit cards, e-statements, cashier's checks, and letters of credit. As of March 15, 2018, it had 28 banking locations across 20 Texas communities located within the East Texas, Dallas/Fort Worth metroplex, and Central Texas regions. The company was founded in 1913 and is headquartered in Mount Pleasant, Texas.

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