Marlin Business Services (NASDAQ: MRLN) is one of 308 public companies in the “Banks” industry, but how does it contrast to its peers? We will compare Marlin Business Services to related companies based on the strength of its risk, earnings, institutional ownership, dividends, valuation, analyst recommendations and profitability.

Institutional & Insider Ownership

80.3% of Marlin Business Services shares are held by institutional investors. Comparatively, 52.1% of shares of all “Banks” companies are held by institutional investors. 6.9% of Marlin Business Services shares are held by insiders. Comparatively, 10.4% of shares of all “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.

Profitability

This table compares Marlin Business Services and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Marlin Business Services 13.40% 10.84% 1.85%
Marlin Business Services Competitors 18.62% 8.30% 0.94%

Volatility and Risk

Marlin Business Services has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500. Comparatively, Marlin Business Services’ peers have a beta of 0.79, meaning that their average share price is 21% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Marlin Business Services and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Marlin Business Services 0 0 2 0 3.00
Marlin Business Services Competitors 2232 8610 8635 354 2.36

Marlin Business Services currently has a consensus target price of $29.00, suggesting a potential upside of 32.42%. As a group, “Banks” companies have a potential downside of 7.47%. Given Marlin Business Services’ stronger consensus rating and higher possible upside, equities analysts clearly believe Marlin Business Services is more favorable than its peers.

Dividends

Marlin Business Services pays an annual dividend of $0.56 per share and has a dividend yield of 2.6%. Marlin Business Services pays out 49.6% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 1.9% and pay out 35.3% of their earnings in the form of a dividend.

Earnings & Valuation

This table compares Marlin Business Services and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Marlin Business Services $100.01 million $17.27 million 19.38
Marlin Business Services Competitors $5.50 billion $827.87 million 395.81

Marlin Business Services’ peers have higher revenue and earnings than Marlin Business Services. Marlin Business Services is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Marlin Business Services beats its peers on 8 of the 15 factors compared.

About Marlin Business Services

Marlin Business Services Corp. is a bank holding company and a financial holding company. The Company is a provider of credit products and services to small businesses. The Company provides products and services to its customers, which include loans and leases for the acquisition of commercial equipment, working capital loans, and insurance products. The Company accesses its end user customers primarily through origination sources consisting of independent commercial equipment dealers, various national account programs, through direct solicitation of its end user customers, and through relationships with select lease and loan brokers. The Company uses both a telephonic direct sales model and, for strategic larger accounts, outside sales executives to market to its origination sources and end user customers. Through these origination sources, the Company accesses end user customers while also helping its origination sources obtain financing for their customers.

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