Monarch Financial (NASDAQ: MNRK) is one of 309 public companies in the “Banks” industry, but how does it compare to its peers? We will compare Monarch Financial to related companies based on the strength of its analyst recommendations, valuation, risk, institutional ownership, profitability, earnings and dividends.
Institutional & Insider Ownership
52.1% of shares of all “Banks” companies are held by institutional investors. 10.4% of shares of all “Banks” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares Monarch Financial and its peers revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Monarch Financial Competitors||$5.50 billion||$827.87 million||394.51|
Monarch Financial’s peers have higher revenue and earnings than Monarch Financial. Monarch Financial 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.
This is a breakdown of recent ratings for Monarch Financial and its peers, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Monarch Financial Competitors||2234||8680||8652||354||2.36|
As a group, “Banks” companies have a potential downside of 7.42%. Given Monarch Financial’s peers higher possible upside, analysts clearly believe Monarch Financial has less favorable growth aspects than its peers.
This table compares Monarch Financial and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Monarch Financial Competitors||18.63%||8.31%||0.94%|
Monarch Financial pays an annual dividend of $0.36 per share and has a dividend yield of 1.9%. Monarch Financial pays out 28.6% 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. Monarch Financial is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.
Risk and Volatility
Monarch Financial has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500. Comparatively, Monarch Financial’s peers have a beta of 0.79, indicating that their average share price is 21% less volatile than the S&P 500.
Monarch Financial peers beat Monarch Financial on 7 of the 11 factors compared.
About Monarch Financial
Monarch Financial Holdings, Inc. (Monarch) is a Virginia-chartered bank holding company. The Company is engaged in commercial and retail banking; investment and insurance sales, and mortgage origination and brokerage. The Company conducts its operations through its subsidiary, Monarch Bank (the Bank), and its two subsidiaries, Monarch Investment, LLC and Monarch Capital, LLC. The Company operates through two segments: community banking (banking) and retail mortgage banking services (mortgage banking). The Company’s community banking segment involves making loans to and generating deposits from individuals and businesses. Monarch’s mortgage banking services consist of originating residential loans and subsequently selling them to investors. Monarch also does business in various markets, such as OBX Bank, Monarch Bank Private Wealth, Monarch Mortgage and under various names through joint ventures with other partners.
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