LOB vs. MBIN, IBTX, FBK, RNST, OFG, TFIN, LKFN, BANR, CUBI, and HTH
Should you be buying Live Oak Bancshares stock or one of its competitors? The main competitors of Live Oak Bancshares include Merchants Bancorp (MBIN), Independent Bank Group (IBTX), FB Financial (FBK), Renasant (RNST), OFG Bancorp (OFG), Triumph Financial (TFIN), Lakeland Financial (LKFN), Banner (BANR), Customers Bancorp (CUBI), and Hilltop (HTH). These companies are all part of the "state commercial banks" industry.
Live Oak Bancshares (NASDAQ:LOB) and Merchants Bancorp (NASDAQ:MBIN) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their community ranking, valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability, media sentiment and risk.
In the previous week, Live Oak Bancshares had 3 more articles in the media than Merchants Bancorp. MarketBeat recorded 5 mentions for Live Oak Bancshares and 2 mentions for Merchants Bancorp. Merchants Bancorp's average media sentiment score of 0.70 beat Live Oak Bancshares' score of 0.26 indicating that Merchants Bancorp is being referred to more favorably in the news media.
Merchants Bancorp has a net margin of 23.42% compared to Live Oak Bancshares' net margin of 9.24%. Merchants Bancorp's return on equity of 25.38% beat Live Oak Bancshares' return on equity.
Live Oak Bancshares received 59 more outperform votes than Merchants Bancorp when rated by MarketBeat users. However, 64.31% of users gave Merchants Bancorp an outperform vote while only 54.07% of users gave Live Oak Bancshares an outperform vote.
Merchants Bancorp has higher revenue and earnings than Live Oak Bancshares. Merchants Bancorp is trading at a lower price-to-earnings ratio than Live Oak Bancshares, indicating that it is currently the more affordable of the two stocks.
Live Oak Bancshares presently has a consensus price target of $41.50, suggesting a potential upside of 13.30%. Merchants Bancorp has a consensus price target of $46.50, suggesting a potential upside of 20.97%. Given Merchants Bancorp's stronger consensus rating and higher possible upside, analysts clearly believe Merchants Bancorp is more favorable than Live Oak Bancshares.
64.0% of Live Oak Bancshares shares are owned by institutional investors. Comparatively, 24.6% of Merchants Bancorp shares are owned by institutional investors. 23.9% of Live Oak Bancshares shares are owned by company insiders. Comparatively, 39.7% of Merchants Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Live Oak Bancshares has a beta of 1.6, suggesting that its stock price is 60% more volatile than the S&P 500. Comparatively, Merchants Bancorp has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500.
Live Oak Bancshares pays an annual dividend of $0.12 per share and has a dividend yield of 0.3%. Merchants Bancorp pays an annual dividend of $0.36 per share and has a dividend yield of 0.9%. Live Oak Bancshares pays out 7.3% of its earnings in the form of a dividend. Merchants Bancorp pays out 6.4% 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. Merchants Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Merchants Bancorp beats Live Oak Bancshares on 14 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding LOB and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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