Mercantile Bank (NASDAQ: MBWM) is one of 199 public companies in the “Commercial Banks” industry, but how does it compare to its rivals? We will compare Mercantile Bank to related companies based on the strength of its profitability, analyst recommendations, institutional ownership, valuation, risk, dividends and earnings.

Analyst Ratings

This is a breakdown of current recommendations for Mercantile Bank and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mercantile Bank 0 3 0 0 2.00
Mercantile Bank Competitors 365 2898 2343 68 2.37

Mercantile Bank currently has a consensus target price of $34.50, indicating a potential downside of 4.85%. As a group, “Commercial Banks” companies have a potential upside of 3.95%. Given Mercantile Bank’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Mercantile Bank has less favorable growth aspects than its rivals.

Insider & Institutional Ownership

54.2% of Mercantile Bank shares are held by institutional investors. Comparatively, 47.3% of shares of all “Commercial Banks” companies are held by institutional investors. 3.2% of Mercantile Bank shares are held by insiders. Comparatively, 11.8% of shares of all “Commercial Banks” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk & Volatility

Mercantile Bank has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500. Comparatively, Mercantile Bank’s rivals have a beta of 0.75, suggesting that their average stock price is 25% less volatile than the S&P 500.

Earnings and Valuation

This table compares Mercantile Bank and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Mercantile Bank $139.49 million $31.91 million 18.98
Mercantile Bank Competitors $343.96 million $72.97 million 21.45

Mercantile Bank’s rivals have higher revenue and earnings than Mercantile Bank. Mercantile Bank is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Mercantile Bank and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mercantile Bank 22.18% 8.91% 1.00%
Mercantile Bank Competitors 20.45% 8.69% 0.93%

Dividends

Mercantile Bank pays an annual dividend of $0.76 per share and has a dividend yield of 2.1%. Mercantile Bank pays out 39.8% of its earnings in the form of a dividend. As a group, “Commercial Banks” companies pay a dividend yield of 1.8% and pay out 35.4% of their earnings in the form of a dividend.

Summary

Mercantile Bank rivals beat Mercantile Bank on 10 of the 15 factors compared.

Mercantile Bank Company Profile

Mercantile Bank Corporation is a bank holding company. The Company owns the Mercantile Bank of Michigan (the Bank). The Bank is a state banking company. The Bank provides commercial banking services primarily to small- to medium-sized businesses and retail banking services. The Bank makes secured and unsecured commercial, construction, mortgage and consumer loans, and accepts checking, savings and time deposits. The Bank also enables customers to conduct certain loan and deposit transactions by personal computer and through mobile applications. Courier service is provided to certain commercial customers, and safe deposit facilities are available at its office locations. The Bank’s commercial lending group originates commercial loans and leases primarily in its market areas. The Bank’s primary deposit products are checking, savings and term certificate accounts.

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