Cambridge Bancorp (NASDAQ:CATC) and Mackinac Financial (NASDAQ:MFNC) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, valuation, analyst recommendations, profitability and earnings.
This is a summary of recent recommendations and price targets for Cambridge Bancorp and Mackinac Financial, as provided by MarketBeat.com.
||Strong Buy Ratings
Mackinac Financial has a consensus target price of $19.00, suggesting a potential upside of 21.41%. Given Mackinac Financial’s higher possible upside, analysts clearly believe Mackinac Financial is more favorable than Cambridge Bancorp.
Valuation and Earnings
This table compares Cambridge Bancorp and Mackinac Financial’s revenue, earnings per share (EPS) and valuation.
||Earnings Per Share
Cambridge Bancorp has higher revenue and earnings than Mackinac Financial.
Institutional & Insider Ownership
37.3% of Cambridge Bancorp shares are held by institutional investors. Comparatively, 47.0% of Mackinac Financial shares are held by institutional investors. 3.3% of Cambridge Bancorp shares are held by insiders. Comparatively, 24.7% of Mackinac Financial shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This table compares Cambridge Bancorp and Mackinac Financial’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Risk and Volatility
Cambridge Bancorp has a beta of 0.13, meaning that its stock price is 87% less volatile than the S&P 500. Comparatively, Mackinac Financial has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500.
Cambridge Bancorp pays an annual dividend of $2.04 per share and has a dividend yield of 2.6%. Mackinac Financial pays an annual dividend of $0.48 per share and has a dividend yield of 3.1%. Mackinac Financial pays out 39.3% of its earnings in the form of a dividend. Mackinac Financial has raised its dividend for 5 consecutive years. Mackinac Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Cambridge Bancorp beats Mackinac Financial on 8 of the 15 factors compared between the two stocks.
Cambridge Bancorp Company Profile
Cambridge Bancorp operates as the bank holding company for Cambridge Trust Company that provides commercial and consumer banking, and investment management and trust services. The company accepts various deposits, such as checking and savings accounts, certificates of deposit, money market accounts, individual retirement accounts, and time and demand deposits. Its loans products include residential and commercial real estate loans; home equity lines of credit and term loans; commercial and industrial loans; secured and unsecured loans, lines of credit, and personal installment loans; and construction loans. The company also offers cash management, online and mobile banking, and payments services. It serves commercial enterprises, non-profit organizations, and individuals. The company operates 10 Massachusetts locations in Cambridge, Boston, Belmont, Concord, Lexington, and Weston; and wealth management offices in Boston, Massachusetts, as well as in Concord, Manchester, and Portsmouth, New Hampshire. Cambridge Bancorp was founded in 1890 and is headquartered in Cambridge, Massachusetts.
Mackinac Financial Company Profile
Mackinac Financial Corporation operates as the bank holding company for mBank that provides commercial and retail banking products and services in the United States. The company accepts interest bearing and non-interest bearing accounts, such as commercial and retail checking accounts, negotiable order of withdrawal accounts, money market accounts, individual retirement accounts, regular interest-bearing statement savings accounts, certificates of deposit, time deposits, and interest bearing transaction accounts. Its loan products include provides commercial loans to entities within real estate operators of nonresidential buildings industry; consumer loan products comprising installment, mortgages, and home equity loans, as well as residential mortgage loans; and commercial and governmental lease financing. The company also offers safe deposit facilities. As of March 27, 2018, it operated 12 branches in the Upper Peninsula; 4 branches in the Northern Lower Peninsula; 1 branch in Oakland County, Michigan; and 7 branches in northern Wisconsin. The company was formerly known as North Country Financial Corporation and changed its name to Mackinac Financial Corporation in December 2004. Mackinac Financial Corporation was incorporated in 1974 and is headquartered in Manistique, Michigan.
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