Magyar Bancorp (NASDAQ:MGYR) and John Marshall Bancorp (NASDAQ:JMSB) Critical Survey

John Marshall Bancorp (NASDAQ:JMSB) and Magyar Bancorp (NASDAQ:MGYR) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, profitability, analyst recommendations and earnings.

Profitability

This table compares John Marshall Bancorp and Magyar Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
John Marshall Bancorp	20.41%	9.16%	1.04%
Magyar Bancorp	18.89%	9.59%	1.13%

Dividends

John Marshall Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 1.7%. Magyar Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 2.0%. John Marshall Bancorp pays out 23.1% of its earnings in the form of a dividend. Magyar Bancorp pays out 21.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Magyar Bancorp has increased its dividend for 3 consecutive years. Magyar Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

John Marshall Bancorp has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500. Comparatively, Magyar Bancorp has a beta of 0.24, meaning that its share price is 76% less volatile than the S&P 500.

Insider and Institutional Ownership

39.1% of John Marshall Bancorp shares are owned by institutional investors. Comparatively, 46.3% of Magyar Bancorp shares are owned by institutional investors. 12.6% of John Marshall Bancorp shares are owned by insiders. Comparatively, 11.1% of Magyar Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for John Marshall Bancorp and Magyar Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
John Marshall Bancorp	0	1	2	1	3.00
Magyar Bancorp	0	1	0	0	2.00

John Marshall Bancorp currently has a consensus price target of $24.50, suggesting a potential upside of 4.88%. Given John Marshall Bancorp’s stronger consensus rating and higher probable upside, research analysts clearly believe John Marshall Bancorp is more favorable than Magyar Bancorp.

Earnings & Valuation

This table compares John Marshall Bancorp and Magyar Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
John Marshall Bancorp	$115.33 million	2.86	$21.23 million	$1.73	13.50
Magyar Bancorp	$58.42 million	2.19	$9.76 million	$1.87	10.59

John Marshall Bancorp has higher revenue and earnings than Magyar Bancorp. Magyar Bancorp is trading at a lower price-to-earnings ratio than John Marshall Bancorp, indicating that it is currently the more affordable of the two stocks.

Summary

John Marshall Bancorp beats Magyar Bancorp on 11 of the 18 factors compared between the two stocks.

About John Marshall Bancorp

John Marshall Bancorp, Inc. is the bank holding company for John Marshall Bank. The Bank is headquartered in Reston, Virginia with eight full-service branches located in Alexandria, Arlington, Loudoun, Prince William, Reston, and Tysons, Virginia, as well as Rockville, Maryland, and Washington, D.C. The Bank is dedicated to providing exceptional value, personalized service and convenience to local businesses and professionals in the Washington, D.C. Metropolitan area. The Bank offers a comprehensive line of sophisticated banking products and services that rival those of the largest banks along with experienced staff to help achieve customers’ financial goals. Dedicated relationship managers serve as direct points-of-contact, providing subject matter expertise in a variety of niche industries including charter and private schools, government contractors, health services, nonprofits and associations, professional services, property management companies and title companies

About Magyar Bancorp

Magyar Bancorp, Inc. operates as the holding company for Magyar Bank that provides various consumer and commercial banking services to individuals, businesses, and nonprofit organizations in New Jersey, the United States. It accepts various deposit accounts, including demand, savings, NOW, money market, and retirement accounts, as well as certificates of deposit. The company also provides residential mortgage loans, multi-family and commercial real estate mortgage loans, home equity loans and lines of credit, commercial business loans, and construction loans, as well as small business administration loans. In addition, it offers non-deposit investment products and financial planning services, including insurance products, fixed and variable annuities, and retirement planning for individual and commercial customers; and buys, sells, and holds investment securities. The company has branch offices located in New Brunswick, North Brunswick, South Brunswick, Branchburg, Bridgewater, and Edison, New Jersey. Magyar Bancorp, Inc. was founded in 1922 and is headquartered in New Brunswick, New Jersey.