Bank Mutual Corporation (NASDAQ: BKMU) and Virginia Commerce Bancorp (NASDAQ:VCBI) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, dividends, profitabiliy, risk, valuation and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations for Bank Mutual Corporation and Virginia Commerce Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bank Mutual Corporation 0 1 0 0 2.00
Virginia Commerce Bancorp 0 0 0 0 N/A

Bank Mutual Corporation presently has a consensus price target of $8.25, suggesting a potential downside of 8.33%. Given Bank Mutual Corporation’s higher possible upside, equities research analysts plainly believe Bank Mutual Corporation is more favorable than Virginia Commerce Bancorp.

Profitability

This table compares Bank Mutual Corporation and Virginia Commerce Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bank Mutual Corporation 14.62% 5.60% 0.61%
Virginia Commerce Bancorp N/A N/A N/A

Dividends

Bank Mutual Corporation pays an annual dividend of $0.22 per share and has a dividend yield of 2.4%. Virginia Commerce Bancorp does not pay a dividend. Bank Mutual Corporation pays out 61.1% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Bank Mutual Corporation and Virginia Commerce Bancorp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Bank Mutual Corporation $94.99 million 4.35 $16.54 million $0.36 25.00
Virginia Commerce Bancorp N/A N/A N/A N/A N/A

Bank Mutual Corporation has higher revenue and earnings than Virginia Commerce Bancorp.

Insider and Institutional Ownership

56.1% of Bank Mutual Corporation shares are held by institutional investors. 10.0% of Bank Mutual Corporation shares are held 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.

Summary

Bank Mutual Corporation beats Virginia Commerce Bancorp on 8 of the 9 factors compared between the two stocks.

Bank Mutual Corporation Company Profile

Bank Mutual Corporation is a savings and loan holding company. The Company owns Bank Mutual (the Bank), a federally-chartered savings bank. The Bank is engaged in the business of community banking, which includes attracting deposits from and making loans to the general public and private businesses, as well as governmental and non-profit entities. In addition to deposits, the Bank obtains funds through borrowings from the Federal Home Loan Bank (FHLB) of Chicago. These funding sources are used to originate loans, including commercial and industrial loans, multi-family residential loans, non-residential commercial real estate loans, one- to four-family loans, home equity loans and other consumer loans. The Bank also purchases and/or participates in loans from third-party financial institutions and is a seller of residential loans in the secondary market. It also invests in mortgage-related and other investment securities.

Virginia Commerce Bancorp Company Profile

Virginia Commerce Bancorp, Inc. is the holding company for Virginia Commerce Bank (the Bank). The Bank is a full-service community bank that provides loan and deposit products to commercial and retail customers in the Washington Metropolitan Area, with the primary focus on Northern Virginia. The Bank’s customer base includes small-to-medium sized businesses, including firms that have contracts with the United States Government, associations, retailers and industrial businesses, professionals and their firms, business executives, investors and consumers. The Bank’s primary service area consists of the Northern Virginia suburbs of Washington, D.C., including Arlington, Fairfax, Fauquier, Loudoun, Prince William, Spotsylvania and Stafford Counties and the cities of Alexandria, Fairfax, Falls Church, Fredericksburg, Manassas and Manassas Park. Effective January 31, 2014, United Bankshares Inc acquired the entire share capital of Virginia Commerce Bancorp Inc.

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