Head-To-Head Survey: Mercantile Bank (NASDAQ:MBWM) versus First National Bank Alaska (OTCMKTS:FBAK)

Mercantile Bank (NASDAQ:MBWMGet Free Report) and First National Bank Alaska (OTCMKTS:FBAKGet Free Report) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, dividends and risk.

Risk and Volatility

Mercantile Bank has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500. Comparatively, First National Bank Alaska has a beta of 0.3, indicating that its share price is 70% less volatile than the S&P 500.

Profitability

This table compares Mercantile Bank and First National Bank Alaska’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mercantile Bank 21.99% 14.29% 1.41%
First National Bank Alaska N/A 13.70% 1.11%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Mercantile Bank and First National Bank Alaska, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mercantile Bank 0 1 2 0 2.67
First National Bank Alaska 0 0 0 0 0.00

Mercantile Bank currently has a consensus price target of $52.83, indicating a potential upside of 17.25%. Given Mercantile Bank’s stronger consensus rating and higher probable upside, research analysts clearly believe Mercantile Bank is more favorable than First National Bank Alaska.

Earnings & Valuation

This table compares Mercantile Bank and First National Bank Alaska”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mercantile Bank $230.50 million 3.17 $79.59 million $4.82 9.35
First National Bank Alaska $87.73 million 9.03 $60.01 million $22.51 11.11

Mercantile Bank has higher revenue and earnings than First National Bank Alaska. Mercantile Bank is trading at a lower price-to-earnings ratio than First National Bank Alaska, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

58.6% of Mercantile Bank shares are held by institutional investors. 3.2% of Mercantile Bank shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Mercantile Bank pays an annual dividend of $1.48 per share and has a dividend yield of 3.3%. First National Bank Alaska pays an annual dividend of $16.00 per share and has a dividend yield of 6.4%. Mercantile Bank pays out 30.7% of its earnings in the form of a dividend. First National Bank Alaska pays out 71.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Mercantile Bank has raised its dividend for 14 consecutive years.

Summary

Mercantile Bank beats First National Bank Alaska on 13 of the 17 factors compared between the two stocks.

About Mercantile Bank

(Get Free Report)

Mercantile Bank Corporation operates as the bank holding company for Mercantile Bank of Michigan that provides commercial and retail banking services to small- to medium-sized businesses and individuals in the United States. It accepts various deposit products, including checking, savings, and term certificate accounts; time deposits; and certificates of deposit. The company also provides commercial and industrial loans; vacant land, land development, and residential construction loans; owner and non-owner occupied real estate loans; multi-family and residential rental property loans; single-family residential real estate loans; home equity line of credit programs; and consumer loans, such as new and used automobile and boat loans, and credit cards, as well as overdraft protection services; and residential mortgage and instalment loans. In addition, it offers courier services and safe deposit facilities; and insurance products, such as private passenger automobile, homeowners, personal inland marine, boat owners, recreational vehicle, dwelling fire, umbrella policies, small business, and life insurance products. The company was incorporated in 1997 and is headquartered in Grand Rapids, Michigan.

About First National Bank Alaska

(Get Free Report)

First National Bank Alaska, a commercial bank, provides various banking products and services for business, industry, and individual customers primarily in Alaska. The company offers savings and checking accounts; money market deposits; safe deposit services; certificates of deposit; individual retirement accounts; and personal, home equity, and construction loans, as well as loans for stability and growth. It also provides investment, treasury, trust, and wealth management services; and escrow and contract collection, and bankcard services. In addition, the company offers debit and credit cards, online and mobile banking, fraud prevention, and convenience banking services. First National Bank Alaska was founded in 1922 and is headquartered in Anchorage, Alaska.

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