Financial Review: BNP Paribas (OTCMKTS:BNPQY) and Mid Penn Bancorp (NASDAQ:MPB)

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

Valuation and Earnings

This table compares Mid Penn Bancorp and BNP Paribas”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mid Penn Bancorp	$350.61 million	2.45	$56.25 million	$2.88	11.79
BNP Paribas	$57.94 billion	1.82	$13.83 billion	$6.89	6.93

BNP Paribas has higher revenue and earnings than Mid Penn Bancorp. BNP Paribas 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.

Profitability

This table compares Mid Penn Bancorp and BNP Paribas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mid Penn Bancorp	17.83%	9.15%	1.18%
BNP Paribas	25.42%	10.39%	0.48%

Insider and Institutional Ownership

43.1% of Mid Penn Bancorp shares are held by institutional investors. Comparatively, 1.2% of BNP Paribas shares are held by institutional investors. 7.2% of Mid Penn Bancorp shares 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.

Dividends

Mid Penn Bancorp pays an annual dividend of $0.92 per share and has a dividend yield of 2.7%. BNP Paribas pays an annual dividend of $2.71 per share and has a dividend yield of 5.7%. Mid Penn Bancorp pays out 31.9% of its earnings in the form of a dividend. BNP Paribas pays out 39.3% 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.

Risk and Volatility

Mid Penn Bancorp has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500. Comparatively, BNP Paribas has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Mid Penn Bancorp and BNP Paribas, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mid Penn Bancorp	0	1	4	0	2.80
BNP Paribas	1	2	3	1	2.57

Mid Penn Bancorp currently has a consensus target price of $39.67, suggesting a potential upside of 16.84%. Given Mid Penn Bancorp’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Mid Penn Bancorp is more favorable than BNP Paribas.

Summary

Mid Penn Bancorp beats BNP Paribas on 9 of the 17 factors compared between the two stocks.

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.

About BNP Paribas

BNP Paribas SA provides various banking and financial products and services in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. It operates through three divisions: Corporate & Institutional Banking; Commercial, Personal Banking & Services; and Investment & Protection Services. The Corporate & Institutional Banking division offers capital market, securities, investment banking, financing, risk management, cash management, and financial advisory services for corporate clients and institutional investors. The Commercial, Personal Banking & Services division provides financing and equipment leasing services, mobility, and digital banking services, as well as current accounts, savings products, bancassurance, insurance products and services, and consumer loans. The Investment & Protection Services division provides protection, savings, investment, and real estate services to support individuals, professionals, corporate clients, and institutions. The company was formerly known as Banque Nationale de Paris and changed its name to BNP Paribas SA in May 2000. BNP Paribas SA was founded in 1822 and is headquartered in Paris, France.