MidWestOne Financial Group (NASDAQ: MOFG) and Southern National Banc. of Virginia (NASDAQ:SONA) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, dividends, valuation, analyst recommendations, earnings and institutional ownership.
This is a summary of recent ratings and price targets for MidWestOne Financial Group and Southern National Banc. of Virginia, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|MidWestOne Financial Group||0||1||2||0||2.67|
|Southern National Banc. of Virginia||0||0||0||0||N/A|
Earnings and Valuation
This table compares MidWestOne Financial Group and Southern National Banc. of Virginia’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|MidWestOne Financial Group||$135.76 million||3.10||$20.39 million||$2.03||16.98|
|Southern National Banc. of Virginia||$51.81 million||7.62||$10.31 million||$0.31||53.23|
MidWestOne Financial Group has higher revenue and earnings than Southern National Banc. of Virginia. MidWestOne Financial Group is trading at a lower price-to-earnings ratio than Southern National Banc. of Virginia, indicating that it is currently the more affordable of the two stocks.
MidWestOne Financial Group pays an annual dividend of $0.68 per share and has a dividend yield of 2.0%. Southern National Banc. of Virginia pays an annual dividend of $0.32 per share and has a dividend yield of 1.9%. MidWestOne Financial Group pays out 33.5% of its earnings in the form of a dividend. Southern National Banc. of Virginia pays out 103.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. MidWestOne Financial Group is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares MidWestOne Financial Group and Southern National Banc. of Virginia’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|MidWestOne Financial Group||17.35%||7.38%||0.79%|
|Southern National Banc. of Virginia||8.11%||5.63%||0.67%|
Volatility and Risk
MidWestOne Financial Group has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500. Comparatively, Southern National Banc. of Virginia has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500.
Institutional & Insider Ownership
46.5% of MidWestOne Financial Group shares are held by institutional investors. Comparatively, 68.5% of Southern National Banc. of Virginia shares are held by institutional investors. 25.3% of MidWestOne Financial Group shares are held by insiders. Comparatively, 9.6% of Southern National Banc. of Virginia shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
MidWestOne Financial Group beats Southern National Banc. of Virginia on 12 of the 15 factors compared between the two stocks.
About MidWestOne Financial Group
MidWestOne Financial Group, Inc. is a bank holding and financial holding company. The Company operates through its bank subsidiaries, MidWestOne Bank, Central Bank and MidWestOne Insurance Services, Inc. that operates through three agencies located in central and east-central Iowa. As of December 31, 2016, the Bank operated a total of 43 banking offices in Iowa, Minnesota, Wisconsin, and Florida. It provides full service retail banking in the communities in which its branch offices are located and also offers trust and investment management services. The Bank offers deposit products, including checking and other demand deposit accounts, negotiable order of withdrawal (NOW) accounts, savings accounts, money market accounts, certificates of deposit, individual retirement accounts and other time deposits. The Bank offers commercial and industrial, agricultural, real estate mortgage and consumer loans.
About Southern National Banc. of Virginia
Southern National Bancorp of Virginia, Inc. (Southern National) is the bank holding company for Sonabank (Sonabank). The Company’s principal business is the acquisition of deposits from the general public through its branch offices and deposit intermediaries, as well as the use of these deposits to fund its loan and investment portfolios. Sonabank is a Virginia state chartered bank. Sonabank provides a range of financial services to individuals, and small and medium sized businesses. The Company focuses on making loans secured primarily by commercial real estate and other types of secured and unsecured commercial loans to small and medium-sized businesses in various industries, as well as loans to individuals for a variety of purposes. It focuses on serving small to medium-sized businesses in its market with a range of services, including an array of commercial mortgage and non-mortgage loans.
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