Allegiance Bancshares (NASDAQ:ABTX) and Mid Penn Bancorp (NASDAQ:MPB) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, valuation and profitability.
Analyst Ratings
This is a summary of recent recommendations for Allegiance Bancshares and Mid Penn Bancorp, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Allegiance Bancshares | 0 | 3 | 0 | 0 | 2.00 |
Mid Penn Bancorp | 0 | 1 | 0 | 0 | 2.00 |
Allegiance Bancshares presently has a consensus target price of $26.50, suggesting a potential downside of 30.57%. Mid Penn Bancorp has a consensus target price of $22.00, suggesting a potential downside of 7.21%. Given Mid Penn Bancorp's higher possible upside, analysts clearly believe Mid Penn Bancorp is more favorable than Allegiance Bancshares.
Risk & Volatility
Allegiance Bancshares has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500. Comparatively, Mid Penn Bancorp has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500.
Dividends
Allegiance Bancshares pays an annual dividend of $0.48 per share and has a dividend yield of 1.2%. Mid Penn Bancorp pays an annual dividend of $0.76 per share and has a dividend yield of 3.2%. Allegiance Bancshares pays out 18.7% of its earnings in the form of a dividend. Mid Penn Bancorp pays out 36.4% 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. Allegiance Bancshares has raised its dividend for 1 consecutive years and Mid Penn Bancorp has raised its dividend for 1 consecutive years.
Insider and Institutional Ownership
44.3% of Allegiance Bancshares shares are owned by institutional investors. Comparatively, 19.5% of Mid Penn Bancorp shares are owned by institutional investors. 8.6% of Allegiance Bancshares shares are owned by company insiders. Comparatively, 18.4% of Mid Penn 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.
Profitability
This table compares Allegiance Bancshares and Mid Penn Bancorp's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Allegiance Bancshares | 17.69% | 6.00% | 0.80% |
Mid Penn Bancorp | 18.55% | 8.92% | 0.82% |
Earnings and Valuation
This table compares Allegiance Bancshares and Mid Penn Bancorp's top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Allegiance Bancshares | $246.33 million | 3.20 | $52.96 million | $2.57 | 15.00 |
Mid Penn Bancorp | $107.93 million | 1.85 | $17.70 million | $2.09 | 11.34 |
Allegiance Bancshares has higher revenue and earnings than Mid Penn Bancorp. Mid Penn Bancorp is trading at a lower price-to-earnings ratio than Allegiance Bancshares, indicating that it is currently the more affordable of the two stocks.
Summary
Allegiance Bancshares beats Mid Penn Bancorp on 8 of the 14 factors compared between the two stocks.