Mid Penn Bancorp (NASDAQ:MPB) & Community Heritage Financial (OTCMKTS:CMHF) Head-To-Head Analysis

Community Heritage Financial (OTCMKTS:CMHF) and Mid Penn Bancorp (NASDAQ:MPB) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, risk, dividends and analyst recommendations.

Dividends

Community Heritage Financial pays an annual dividend of $0.32 per share and has a dividend yield of 1.0%. Mid Penn Bancorp pays an annual dividend of $0.88 per share and has a dividend yield of 2.8%. Community Heritage Financial pays out 10.9% of its earnings in the form of a dividend. Mid Penn Bancorp pays out 34.5% 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.

Institutional and Insider Ownership

12.2% of Community Heritage Financial shares are held by institutional investors. Comparatively, 43.1% of Mid Penn Bancorp shares are held by institutional investors. 8.1% of Mid Penn Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Community Heritage Financial and Mid Penn Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Community Heritage Financial	N/A	N/A	N/A
Mid Penn Bancorp	16.04%	8.64%	1.09%

Analyst Recommendations

This is a summary of current ratings and price targets for Community Heritage Financial and Mid Penn Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Community Heritage Financial	0	0	0	0	0.00
Mid Penn Bancorp	0	0	2	0	3.00

Mid Penn Bancorp has a consensus price target of $37.00, suggesting a potential upside of 15.90%. Given Mid Penn Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe Mid Penn Bancorp is more favorable than Community Heritage Financial.

Volatility & Risk

Community Heritage Financial has a beta of 0.32, meaning that its stock price is 68% less volatile than the S&P 500. Comparatively, Mid Penn Bancorp has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500.

Earnings and Valuation

This table compares Community Heritage Financial and Mid Penn Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Community Heritage Financial	$60.49 million	1.50	$8.61 million	$2.94	10.54
Mid Penn Bancorp	$350.61 million	2.11	$56.25 million	$2.55	12.52

Mid Penn Bancorp has higher revenue and earnings than Community Heritage Financial. Community Heritage Financial is trading at a lower price-to-earnings ratio than Mid Penn Bancorp, indicating that it is currently the more affordable of the two stocks.

Summary

Mid Penn Bancorp beats Community Heritage Financial on 14 of the 16 factors compared between the two stocks.

About Community Heritage Financial

Community Heritage Financial, Inc. operates as the bank holding company for Middletown Valley Bank that provides retail and commercial banking services to individuals and businesses in Frederick and Washington counties in Maryland and Franklin County, Pennsylvania. Its primary deposit products include demand, savings, and time deposits, as well as lending products comprise real estate mortgages, commercial business loans, and instalment loans. The company also offers mortgage financing, new home purchases, refinancing, and construction lending in Middletown, Crofton, and Oakland, Maryland. The company was founded in 1908 and is based in Middletown, Maryland.

About Mid Penn Bancorp

Mid Penn Bancorp, Inc. operates as the bank holding company for Mid Penn Bank that provides commercial banking services to individuals, partnerships, non-profit organizations, and corporations. The company offers various time and demand deposit products, including checking accounts, savings accounts, clubs, money market deposit accounts, certificates of deposit, and individual retirement accounts. It also provides a range of loan products comprising mortgage and home equity loans, secured and unsecured commercial and consumer loans, lines of credit, construction financing, farm loans, community development loans, loans to non-profit entities, and local government loans. In addition, the company offers trust, retail investment, wealth management, and insurance services; and provides online banking, telephone banking, cash management, and automated teller services, as well as safe deposit boxes. The company was founded in 1868 and is headquartered in Harrisburg, Pennsylvania.