Critical Survey: Marlin Business Services (MRLN) & Its Competitors

Marlin Business Services (NASDAQ: MRLN) is one of 312 publicly-traded companies in the “Banks” industry, but how does it contrast to its competitors? We will compare Marlin Business Services to similar businesses based on the strength of its analyst recommendations, profitability, earnings, risk, dividends, valuation and institutional ownership.

Earnings & Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Marlin Business Services $100.01 million $17.27 million 20.66
Marlin Business Services Competitors $5.62 billion $754.88 million 400.23

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

Profitability

This table compares Marlin Business Services and its competitors’ 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 18.16% 8.28% 0.93%

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 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 35.1% of their earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent ratings for Marlin Business Services and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Marlin Business Services 0 0 2 0 3.00
Marlin Business Services Competitors 2435 8917 8855 370 2.35

Marlin Business Services presently has a consensus target price of $29.00, suggesting a potential upside of 24.20%. As a group, “Banks” companies have a potential downside of 11.77%. Given Marlin Business Services’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Marlin Business Services is more favorable than its competitors.

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’ competitors have a beta of 0.79, meaning that their average share price is 21% less volatile than the S&P 500.

Insider & Institutional Ownership

79.5% of Marlin Business Services shares are owned by institutional investors. Comparatively, 51.9% of shares of all “Banks” companies are owned by institutional investors. 6.9% of Marlin Business Services shares are owned by company insiders. Comparatively, 10.4% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

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

Marlin Business Services Company Profile

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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