Marlin Business Services (MRLN) & Its Competitors Head-To-Head Review

Marlin Business Services (NASDAQ: MRLN) is one of 314 publicly-traded companies in the “Banks” industry, but how does it weigh in compared to its peers? We will compare Marlin Business Services to similar businesses based on the strength of its valuation, profitability, analyst recommendations, risk, earnings, dividends and institutional ownership.

Earnings & Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Marlin Business Services $100.01 million $17.27 million 20.89
Marlin Business Services Competitors $5.62 billion $833.70 million 384.41

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.

Institutional & Insider Ownership

80.3% of Marlin Business Services shares are owned by institutional investors. Comparatively, 52.0% of shares of all “Banks” companies are owned by institutional investors. 6.9% of Marlin Business Services shares are owned by insiders. Comparatively, 10.4% of shares of all “Banks” companies are owned 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.

Volatility and Risk

Marlin Business Services has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500. Comparatively, Marlin Business Services’ peers have a beta of 0.80, suggesting that their average share price is 20% less volatile than the S&P 500.

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 12.64% 7.83% 1.33%
Marlin Business Services Competitors 18.24% 8.28% 0.93%

Analyst Ratings

This is a summary of current ratings and target prices for Marlin Business Services and its peers, as provided 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 2432 8907 8841 370 2.35

Marlin Business Services presently has a consensus target price of $29.00, indicating a potential upside of 23.93%. As a group, “Banks” companies have a potential downside of 9.16%. Given Marlin Business Services’ stronger consensus rating and higher probable upside, 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 2.4%. Marlin Business Services pays out 50.0% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 1.9% and pay out 35.6% of their earnings in the form of a dividend.

Summary

Marlin Business Services peers beat Marlin Business Services 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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