WashingtonFirst Bankshares (NASDAQ: WFBI) and Merchants Bancorp (NASDAQ:MBIN) are both small-cap financials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.
Valuation and Earnings
This table compares WashingtonFirst Bankshares and Merchants Bancorp’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|WashingtonFirst Bankshares||$101.35 million||4.24||$18.00 million||$1.51||22.69|
|Merchants Bancorp||$101.44 million||5.82||$33.12 million||N/A||N/A|
WashingtonFirst Bankshares pays an annual dividend of $0.14 per share and has a dividend yield of 0.4%. Merchants Bancorp pays an annual dividend of $0.20 per share and has a dividend yield of 1.0%. WashingtonFirst Bankshares pays out 9.3% of its earnings in the form of a dividend.
Insider & Institutional Ownership
55.9% of WashingtonFirst Bankshares shares are owned by institutional investors. Comparatively, 0.1% of Merchants Bancorp shares are owned by institutional investors. 20.7% of WashingtonFirst Bankshares shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares WashingtonFirst Bankshares and Merchants Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and target prices for WashingtonFirst Bankshares and Merchants Bancorp, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
WashingtonFirst Bankshares currently has a consensus price target of $28.00, suggesting a potential downside of 18.27%. Merchants Bancorp has a consensus price target of $21.25, suggesting a potential upside of 3.16%. Given Merchants Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe Merchants Bancorp is more favorable than WashingtonFirst Bankshares.
Merchants Bancorp beats WashingtonFirst Bankshares on 8 of the 13 factors compared between the two stocks.
WashingtonFirst Bankshares Company Profile
WashingtonFirst Bankshares, Inc. is a bank holding company. The Company, through its subsidiary, WashingtonFirst Bank (the Bank), operates banking offices throughout the Washington, D.C. metropolitan area. The Company’s segments include Commercial Bank, Mortgage Bank, Wealth Management and Other. In addition, the Company provides wealth management services through its subsidiary, 1st Portfolio, Inc. (Wealth Advisors), located in Fairfax, Virginia, and mortgage banking services through the Bank’s subsidiary, WashingtonFirst Mortgage Corporation, which operates in two locations: Fairfax, Virginia and Rockville, Maryland. The Company offers a range of commercial banking products and services to small-to-medium sized businesses, not-for-profit organizations, professional service firms and individuals in the greater Washington, D.C. metropolitan area.
Merchants Bancorp Company Profile
Merchants Bancorp is a diversified bank holding bank. The Bank operate multiple lines of business with a focus on FHA multi-family housing and healthcare facility financing and servicing, mortgage warehouse financing, retail and correspondent residential mortgage banking, agricultural lending and traditional community banking. The Bank operates in three primary segments: Multi-family Mortgage Banking, Mortgage Warehousing, and Banking. The Multi-family Mortgage Banking segment originates and services government sponsored mortgages for multi-family and healthcare facilities. The Mortgage Warehousing segment funds agency eligible residential loans from origination or purchase to sale in the secondary market, as well as commercial loans to non-depository financial institutions. The Banking segment provides a wide range of financial products and services to consumers and businesses, including commercial, commercial real estate, mortgage and other consumer loan products.
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