Macatawa Bank (NASDAQ:MCBC) vs. Mid Penn Bancorp (NASDAQ:MPB) Critical Analysis

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Macatawa Bank (NASDAQ:MCBC – Get Rating) and Mid Penn Bancorp (NASDAQ:MPB – Get Rating) are both small cap finance companies, but which is the better stock? We’ll compare the two companies based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.

Profitability

This table compares the net margins, return on equity and return on assets of Macatawa Bank and Mid Penn Bancorp.

Net margins Return on equity return on assets
Macatawa Bank 35.24% 11.64% 1.01%
Mid Penn Bancorp 20.24% 10.34% 1.00%

Institutional and insider ownership

36.1% of Macatawa Bank shares are held by institutional investors. By comparison, 45.0% of Mid Penn Bancorp’s shares are held by institutional investors. 8.4% of Macatawa Bank shares are held by insiders of the company. By comparison, 10.3% of Mid Penn Bancorp’s stock is held by insiders of the company. Strong institutional ownership indicates that hedge funds, large fund managers, and endowments believe a stock is ripe for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Macatawa Bank and Mid Penn Bancorp, as provided by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Macatawa Bank 0 0 0 0 N / A
Mid Penn Bancorp 0 0 2 0 3.00

Mid Penn Bancorp has a consensus price target of $30.00, indicating a potential upside of 14.37%. Given the higher possible upside of Mid Penn Bancorp, analysts clearly believe that Mid Penn Bancorp is more favorable than Macatawa Bank.

Risk and Volatility

Macatawa Bank has a beta of 0.74, meaning its stock price is 26% less volatile than the S&P 500. In comparison, Mid Penn Bancorp has a beta of 0.56, meaning its stock price is 44 % less volatile than the S&P 500.

Valuation and benefits

This table compares the revenue, earnings per share (EPS), and valuation of Macatawa Bank and Mid Penn Bancorp.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Macatawa Bank $82.33 million 3.68 $29.01 million $0.85 10:40 a.m.
Mid Penn Bancorp $144.85 million 2.89 $29.32 million $2.94 8.92

Mid Penn Bancorp has higher revenue and profit than Macatawa Bank. Mid Penn Bancorp trades at a lower price-to-earnings ratio than Macatawa Bank, indicating that it is currently the more affordable of the two stocks.

Dividends

Macatawa Bank pays an annual dividend of $0.32 per share and has a dividend yield of 3.6%. Mid Penn Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 3.0%. Macatawa Bank pays 37.6% of its profits as a dividend. Mid Penn Bancorp pays 27.2% of its earnings as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Mid Penn Bancorp has increased its dividend for 1 consecutive years.

Summary

Mid Penn Bancorp beats Macatawa Bank on 9 out of 16 factors compared between the two stocks.

Macatawa Bank Company Profile (Get a rating)

Macatawa Bank Corporation operates as a bank holding company for Macatawa Bank which provides corporate and consumer banking and trust services. The Company accepts various deposits, such as checking accounts, savings accounts, term deposits, ordinary and money market savings accounts, certificates of deposit and demand deposits. Its lending products include commercial and industrial loans including loans to finance operations and equipment; commercial real estate loans, which consist of real estate loans for construction and development, multifamily and other non-residential real estate; and residential mortgages, as well as consumer loans, including auto loans, home equity lines of credit and installment loans, home improvement loans, deposit account loans and other loans for household and personal purposes. The company also offers debit card and ATM processing, cash management, trust and brokerage services. In addition, it offers protection against fraud; collection services; disbursement solutions; fund management; and investment and pension plan services. It serves individuals, businesses, associations, churches, non-profit organizations, financial institutions and government authorities. As of December 31, 2021, the company had 26 full-service branches in Kent, Ottawa and the northern counties of Allegan, Michigan. Macatawa Bank Corporation was incorporated in 1997 and is based in Holland, Michigan.

Mid Penn Bancorp Company Profile (Get a rating)

Mid Penn Bancorp, Inc. operates as a bank holding company for Mid Penn Bank which provides commercial banking services to individuals, partnerships, non-profit organizations and businesses. The Company offers various term and demand deposit products, including checking accounts, savings accounts, clubs, money market deposit accounts, certificates of deposit and IRAs. It also offers a range of lending products including mortgage and home equity loans, secured and unsecured commercial and consumer loans, lines of credit, construction finance, agricultural loans, community development loans , loans to non-profit entities and loans to local authorities. In addition, the company offers online banking, telephone banking, cash management and ATM services, as well as safe deposit boxes; and trust and wealth management services. As of December 31, 2021, it operated sixty full-service retail banking establishments in Berks, Blair, Bucks, Centre, Chester, Clearfield, Cumberland, Dauphin, Fayette, Huntingdon, Lancaster, Lehigh, Lucerne, Lycoming, Montgomery, Northumberland, Perry, Schuylkill and Westmoreland counties, Pennsylvania. The company was founded in 1868 and is headquartered in Harrisburg, Pennsylvania.



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