M&F Bancorp (OTCMKTS:MFBP) and Eagle Bancorp Montana (NASDAQ:EBMT) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, profitability, risk, dividends, earnings and analyst recommendations.
Insider and Institutional Ownership
9.2% of M&F Bancorp shares are owned by institutional investors. Comparatively, 42.4% of Eagle Bancorp Montana shares are owned by institutional investors. 2.9% of M&F Bancorp shares are owned by insiders. Comparatively, 6.9% of Eagle Bancorp Montana shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This is a summary of current ratings and price targets for M&F Bancorp and Eagle Bancorp Montana, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Eagle Bancorp Montana||0||0||1||0||3.00|
Eagle Bancorp Montana pays an annual dividend of $0.37 per share and has a dividend yield of 2.1%. M&F Bancorp does not pay a dividend. Eagle Bancorp Montana pays out 29.1% of its earnings in the form of a dividend. Eagle Bancorp Montana has increased its dividend for 3 consecutive years.
Earnings & Valuation
This table compares M&F Bancorp and Eagle Bancorp Montana’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Eagle Bancorp Montana||$42.19 million||2.24||$4.10 million||$1.27||13.55|
Eagle Bancorp Montana has higher revenue and earnings than M&F Bancorp.
This table compares M&F Bancorp and Eagle Bancorp Montana’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Eagle Bancorp Montana||8.85%||6.19%||0.69%|
Volatility and Risk
M&F Bancorp has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500. Comparatively, Eagle Bancorp Montana has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500.
Eagle Bancorp Montana beats M&F Bancorp on 9 of the 11 factors compared between the two stocks.
About M&F Bancorp
M&F Bancorp, Inc. operates as the bank holding company for Mechanics and Farmers Bank that provides consumer and commercial banking products and services in North Carolina. The company offers deposit products, including checking, savings, money market, and individual retirement accounts, as well as certificates of deposit. It also provides loans for real estate, construction, businesses, personal use, home improvement, and automobiles; and equity lines of credit, credit lines, consumer loans, and credit cards. In addition, the company offers safe deposit boxes, Internet and mobile banking services, notary services, and automated teller machine services, as well as electronic funds transfer services, such as wire transfers. It operates seven branch offices in Durham, Raleigh, Charlotte, Greensboro, and Winston-Salem, North Carolina. The company was founded in 1907 and is headquartered in Durham, North Carolina.
About Eagle Bancorp Montana
Eagle Bancorp Montana, Inc. operates as the bank holding company for Opportunity Bank of Montana that provides various retail banking products and services in Montana. The company offers one-to-four family residential mortgage loans; commercial real estate loans; real estate construction loans; home equity loans; commercial business loans consisting of business loans and lines of credit on a secured and unsecured basis; and consumer loans comprising loans that are secured by collateral other than real estate, such as automobiles, recreational vehicles, and boats. It also accepts various deposit products, such as checking, savings, money market, and individual retirement accounts, as well as certificates of deposit accounts. In addition, the company provides wealth management and mortgage loan services. Eagle Bancorp Montana, Inc. was founded in 1922 and is headquartered in Helena, Montana.
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