Midland States Bancorp (NASDAQ:MSBI) & Carver Bancorp (NASDAQ:CARV) Financial Comparison

Carver Bancorp (NASDAQ:CARV) and Midland States Bancorp (NASDAQ:MSBI) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, valuation, earnings, profitability, analyst recommendations, dividends and institutional ownership.

Valuation and Earnings

This table compares Carver Bancorp and Midland States Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Carver Bancorp	$22.74 million	0.51	-$13.74 million	($1.36)	-1.35
Midland States Bancorp	$476.05 million	1.47	-$124.28 million	$1.56	21.62

Carver Bancorp has higher earnings, but lower revenue than Midland States Bancorp. Carver Bancorp is trading at a lower price-to-earnings ratio than Midland States Bancorp, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Carver Bancorp and Midland States Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carver Bancorp	1	0	0	0	1.00
Midland States Bancorp	0	5	0	1	2.33

Midland States Bancorp has a consensus target price of $29.10, indicating a potential downside of 13.71%. Given Midland States Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe Midland States Bancorp is more favorable than Carver Bancorp.

Risk and Volatility

Carver Bancorp has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500. Comparatively, Midland States Bancorp has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500.

Insider and Institutional Ownership

18.2% of Carver Bancorp shares are held by institutional investors. Comparatively, 60.9% of Midland States Bancorp shares are held by institutional investors. 1.3% of Carver Bancorp shares are held by insiders. Comparatively, 8.6% of Midland States Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Carver Bancorp and Midland States Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Carver Bancorp	-34.89%	-171.55%	-1.82%
Midland States Bancorp	9.40%	13.32%	0.92%

Summary

Midland States Bancorp beats Carver Bancorp on 12 of the 14 factors compared between the two stocks.

About Carver Bancorp

Carver Bancorp, Inc. operates as the holding company for Carver Federal Savings Bank that provides consumer and commercial banking services for consumers, businesses, non-profit organizations, and governmental and quasi-governmental agencies primarily in New York. It accepts various deposit products, including demand, savings, and time deposits; passbook and statement accounts, and certificates of deposit; and individual retirement accounts. The company provides lending products, such as one-to-four family residential, multifamily real estate, and commercial real estate lending; and construction, business and small business administration, and consumer and other loans. In addition, it offers other consumer and commercial banking products and services, including debit cards, online account opening and banking, online bill pay, and telephone banking, as well as check cashing, wire transfer, bill payment, reloadable prepaid card, and money order services. Carver Bancorp, Inc. was founded in 1948 and is headquartered in New York, New York.

About Midland States Bancorp

Midland States Bancorp, Inc. operates as a financial holding company for Midland States Bank that provides various banking products and services to individuals, businesses, municipalities, and other entities. It operates through Banking, Wealth Management, and Other segments. The company provides a range of financial products and services to consumers and businesses, including commercial loans to finance agricultural equipment and production; and commercial real estate loans for owner occupied offices, warehouses and production facilities, office buildings, hotels, mixed-use residential and commercial facilities, retail centers, multifamily properties, and assisted living facilities. In addition, it offers construction and land development loans, such as real estate investment properties and residential developments, and lesser extent loans; and residential real estate loans, which includes first and second mortgage loans, and home equity lines of credit consisting of loans secured by first or second mortgages on primarily owner occupied primary residences. The company also provides consumer installment loans for the purchase of cars, boats and other recreational vehicles, as well as for the purchase of major appliances and other home improvement projects; and commercial equipment leasing programs for manufacturing, construction, transportation, and healthcare industries. Further, it offers merchant services; deposit products, including checking, time, savings, money market, and certificates of deposit, as well as sweep accounts; letters of credit; and trust and wealth management services, such as financial and estate planning, trustee and custodial, investment management, tax, insurance, and business planning, corporate retirement plan consulting and administration, and retail brokerage services. The company was founded in 1881 and is headquartered in Effingham, Illinois.