Critical Analysis: Mercantil Bank (AMTB) vs. Its Peers

Mercantil Bank (NASDAQ: AMTB) is one of 141 public companies in the “National commercial banks” industry, but how does it weigh in compared to its peers? We will compare Mercantil Bank to related companies based on the strength of its institutional ownership, dividends, profitability, valuation, analyst recommendations, earnings and risk.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Mercantil Bank and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mercantil Bank 0 1 3 0 2.75
Mercantil Bank Competitors 1452 5820 5200 262 2.34

Mercantil Bank presently has a consensus price target of $17.33, indicating a potential upside of 12.63%. As a group, “National commercial banks” companies have a potential upside of 15.49%. Given Mercantil Bank’s peers higher possible upside, analysts clearly believe Mercantil Bank has less favorable growth aspects than its peers.

Earnings & Valuation

This table compares Mercantil Bank and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Mercantil Bank N/A N/A 11.32
Mercantil Bank Competitors $7.72 billion $1.73 billion 12.24

Mercantil Bank’s peers have higher revenue and earnings than Mercantil Bank. Mercantil Bank 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.

Insider and Institutional Ownership

2.3% of Mercantil Bank shares are held by institutional investors. Comparatively, 51.8% of shares of all “National commercial banks” companies are held by institutional investors. 9.1% of shares of all “National commercial banks” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Mercantil Bank and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mercantil Bank N/A N/A N/A
Mercantil Bank Competitors 23.51% 11.29% 1.19%

Summary

Mercantil Bank peers beat Mercantil Bank on 9 of the 11 factors compared.

About Mercantil Bank

Mercantil Bank Holding Corporation operates as a bank holding company for Amerant Bank, N.A. that provides banking products and services to individuals and businesses in the United States and deposit, credit, and wealth management services international clients. The company operates through four segments: Personal and Commercial Banking, Corporate LATAM, Treasury, and Institutional. It offers a range of checking and savings accounts, certificates of deposit, and money market accounts. The company also provides variable and fixed rate commercial real estate, and commercial and industrial loans; loans secured by owner-occupied properties; loans to domestic and foreign individuals primarily secured by their personal residence; loans to financial institutions and acceptances; and consumer loans and overdrafts. In addition, it offers trust and estate planning products and services, brokerage and investment advisory services in global capital markets, and fiduciary services. Further, the company provides debit and credit cards; remote deposit capture, online banking, mobile banking, e-statements, night depository, direct deposit, and treasury management services; and cashier's checks, safe deposit boxes, and letters of credit. As of October 30, 2018, it operated 23 banking centers comprising 15 in South Florida and 8 in Houston, as well as a commercial real estate loan production office in Manhattan, New York. The company was founded in 1979 and is headquartered in Coral Gables, Florida.

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