Head-To-Head Review: Mechanics Bancorp (NASDAQ:MCHB) and CoastalSouth Bancshares (NYSE:COSO)

CoastalSouth Bancshares (NYSE:COSO) and Mechanics Bancorp (NASDAQ:MCHB) are both small-cap financial services companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.

Profitability

This table compares CoastalSouth Bancshares and Mechanics Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CoastalSouth Bancshares	N/A	N/A	N/A
Mechanics Bancorp	-42.54%	-3.92%	-0.21%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for CoastalSouth Bancshares and Mechanics Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CoastalSouth Bancshares	0	1	1	0	2.50
Mechanics Bancorp	0	2	0	0	2.00

Mechanics Bancorp has a consensus price target of $14.50, suggesting a potential upside of 9.27%. Given Mechanics Bancorp’s higher probable upside, analysts plainly believe Mechanics Bancorp is more favorable than CoastalSouth Bancshares.

Valuation & Earnings

This table compares CoastalSouth Bancshares and Mechanics Bancorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CoastalSouth Bancshares	N/A	N/A	N/A	N/A	N/A
Mechanics Bancorp	$586.19 million	0.43	-$144.34 million	($6.76)	-1.96

CoastalSouth Bancshares has higher earnings, but lower revenue than Mechanics Bancorp.

Institutional and Insider Ownership

74.7% of Mechanics Bancorp shares are owned by institutional investors. 4.6% of Mechanics Bancorp shares are owned 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.

Summary

CoastalSouth Bancshares beats Mechanics Bancorp on 5 of the 9 factors compared between the two stocks.

About CoastalSouth Bancshares

CoastalSouth Bancshares, Inc. is a bank holding company headquartered in Atlanta, Georgia. Through our wholly owned subsidiary, Coastal States Bank, a South Carolina state-chartered commercial bank, we offer a full range of banking products and services designed for businesses, real estate professionals, and consumers looking for a deep and meaningful relationship with their bank. Today, we have a community banking presence in some of the fastest growing and most business-friendly markets in the U.S., namely the Lowcountry of South Carolina (Hilton Head Island, Bluffton, and Beaufort), nearby Savannah, Georgia, and the Atlanta, Georgia market. — In addition to our traditional community banking operations, we operate four specialty lines of business that provide scalability and diversification: • Senior Housing Lending – focuses on lending to operators across the spectrum of senior care, with an emphasis on assisted living; • Marine Lending – focuses on consumer loans primarily to high-net-worth borrowers secured by yachts and high-end sport fishing vessels; • Government Guaranteed Lending – focuses on origination of small business and other loans guaranteed by the SBA and USDA; and • Mortgage Banker Finance – focuses on mortgage warehouse lending to mortgage originators. By combining the relationship-based focus of a community bank with our specialty lines of business, we believe we can capitalize on the substantial growth opportunities available in our markets, particularly given the scarcity of community banks between $1.5 billion and $5.0 billion in total assets. Our principal executive offices are located in Atlanta, Georgia.

About Mechanics Bancorp

HomeStreet, Inc. operates as the bank holding company for HomeStreet Bank that provides commercial, mortgage, and consumer/retail banking services primarily in the Western United States. The company offers personal and business checking, savings accounts, interest-bearing negotiable order of withdrawal accounts, money market accounts, and time certificates of deposit; credit cards; insurance; and treasury management products and services. Its loan products include commercial business and agriculture loans, single family residential mortgages, consumer loans, commercial loans secured by residential and commercial real estate, and construction loans for residential and commercial real estate development, as well as consumer installment loans and permanent loans on commercial real estate and single-family residences. In addition, the company offers its products and services through bank branches, loan production offices, and ATMs, as well as through online, mobile, and telephone banking. As of December 31, 2021, it operated 60 full-service bank branches located in Washington state, Northern and Southern California, the Portland, Oregon, and Hawaii; and five primary stand-alone commercial lending centers in Central Washington, Oregon, Southern California, Idaho, and Utah. HomeStreet, Inc. serves small and medium sized businesses, real estate investors, professional firms, and individuals. The company was formerly known as Continental Mortgage and Loan Company. HomeStreet, Inc. was incorporated in 1921 and is headquartered in Seattle, Washington.