Middleburg Financial Corp. (NASDAQ: MBRG) and Guaranty Bancshares (NASDAQ:GNTY) are both small-cap commercial banks companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, profitability, institutional ownership, risk, analyst recommendations, earnings and valuation.
Insider & Institutional Ownership
29.1% of Middleburg Financial Corp. shares are owned by institutional investors. Comparatively, 20.1% of Guaranty Bancshares shares are owned by institutional investors. 5.1% of Middleburg Financial Corp. shares are owned by company insiders. Comparatively, 34.1% of Guaranty Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Middleburg Financial Corp. pays an annual dividend of $0.52 per share and has a dividend yield of 1.3%. Guaranty Bancshares pays an annual dividend of $0.52 per share and has a dividend yield of 1.8%. Middleburg Financial Corp. pays out 46.0% of its earnings in the form of a dividend.
This table compares Middleburg Financial Corp. and Guaranty Bancshares’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Middleburg Financial Corp.||8.07%||3.43%||0.34%|
This is a breakdown of current ratings for Middleburg Financial Corp. and Guaranty Bancshares, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Middleburg Financial Corp.||0||0||0||0||N/A|
Guaranty Bancshares has a consensus target price of $34.00, indicating a potential upside of 18.06%. Given Guaranty Bancshares’ higher possible upside, analysts clearly believe Guaranty Bancshares is more favorable than Middleburg Financial Corp..
Risk and Volatility
Middleburg Financial Corp. has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500. Comparatively, Guaranty Bancshares has a beta of -0.01, indicating that its share price is 101% less volatile than the S&P 500.
Valuation & Earnings
This table compares Middleburg Financial Corp. and Guaranty Bancshares’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Middleburg Financial Corp.||N/A||N/A||N/A||$1.13||35.43|
|Guaranty Bancshares||$77.72 million||4.10||$12.12 million||N/A||N/A|
Guaranty Bancshares has higher revenue and earnings than Middleburg Financial Corp..
Middleburg Financial Corp. Company Profile
Middleburg Financial Corporation is a bank holding company. The Company conducts its primary operations through two subsidiaries, Middleburg Bank and Middleburg Investment Group, Inc. The Company has another subsidiary, MFC Capital Trust II. The Company’s segments are Commercial & Retail Banking, which includes loans, investment securities and deposit accounts; Wealth Management, including wealth management activities, and Mortgage Banking, which includes mortgage banking activities. The Company, through its subsidiaries, offers a range of banking, fiduciary and investment management services to both individuals and small businesses. The Company’s business activities include commercial and retail banking services through Middleburg Bank, wealth management services through Middleburg Investment Group, Inc., and mortgage banking services. Other banking services available to its clients include Internet banking, travelers’ checks, safe deposit rentals, notary public and wire services.
Guaranty Bancshares Company Profile
Guaranty Bancshares, Inc. is the holding company for Guaranty Bank & Trust (Guaranty). Guaranty offers various solutions, such as personal banking, business banking, mortgage and wealth management. Its personal banking solutions include checking accounts, which include compare accounts, green checking, student checking, choice checking, guaranty interest checking, order checks and debit cards; savings accounts, which include regular savings, premier money market, certificate of deposit, individual retirement account (IRA) options and health savings account, and online banking, which includes money desktop and e-statements. Guaranty offers various loans, including line of credit, small business administration loans and real estate loans. Guaranty also offers mobile banking solutions, mortgage warehouse lending solutions and treasury management solutions. It has approximately 30 bank locations in over 20 Texas communities.
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