Contrasting Mid Penn Bancorp (NASDAQ:MPB) and Inter & Co. Inc. (NASDAQ:INTR)

Mid Penn Bancorp (NASDAQ:MPB) and Inter & Co. Inc. (NASDAQ:INTR) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, institutional ownership and profitability.

Profitability

This table compares Mid Penn Bancorp and Inter & Co. Inc.’s 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%
Inter & Co. Inc.	11.23%	14.94%	1.57%

Earnings and Valuation

This table compares Mid Penn Bancorp and Inter & Co. Inc.”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mid Penn Bancorp	$350.61 million	2.47	$56.25 million	$2.88	11.86
Inter & Co. Inc.	$1.93 billion	0.90	$235.05 million	$0.66	5.92

Inter & Co. Inc. has higher revenue and earnings than Mid Penn Bancorp. Inter & Co. Inc. 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.

Insider & Institutional Ownership

43.1% of Mid Penn Bancorp shares are held by institutional investors. Comparatively, 22.9% of Inter & Co. Inc. 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 large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

Mid Penn Bancorp has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500. Comparatively, Inter & Co. Inc. has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Mid Penn Bancorp and Inter & Co. Inc., as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mid Penn Bancorp	0	1	4	0	2.80
Inter & Co. Inc.	1	3	3	0	2.29

Mid Penn Bancorp currently has a consensus price target of $39.67, suggesting a potential upside of 16.09%. Inter & Co. Inc. has a consensus price target of $9.30, suggesting a potential upside of 137.85%. Given Inter & Co. Inc.’s higher probable upside, analysts plainly believe Inter & Co. Inc. is more favorable than Mid Penn Bancorp.

Dividends

Mid Penn Bancorp pays an annual dividend of $0.92 per share and has a dividend yield of 2.7%. Inter & Co. Inc. pays an annual dividend of $0.11 per share and has a dividend yield of 2.8%. Mid Penn Bancorp pays out 31.9% of its earnings in the form of a dividend. Inter & Co. Inc. pays out 16.7% 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. Inter & Co. Inc. is clearly the better dividend stock, given its higher yield and lower payout ratio.

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 Inter & Co. Inc.

Inter & Co., Inc. Is a holding company, which engages in the provision of financial products and services. It operates through the following segments: Banking, Securities, Insurance Brokerage, Marketplace, Asset Management, Service, and Other. The Banking segment offers checking accounts cards, deposits, loans and advances, and other services through mobile application. The Securities segment is involved in the acquisition, sale and custody of securities, the structuring and distribution of securities in the capital market, and the provision of administration services to investment funds. The Insurance Brokerage segment includes insurance products underwritten by insurance companies, such as warranties, life, property and automobile insurance, and pension products, as well as consortium products provided by a third party. The Marketplace segment operates a digital platform, which offers goods and services to its customers. The Asset Management segment is composed of the operations related to the management of fund portfolios and other assets. The Service segment consists of collection and management of personal information, development and licensing of customized computer programs, development and licensing of non-customized computer programs and technical support, maintenance, and other information technology services. The company was founded on January 26, 2021 and is headquartered in Belo Horizonte, Brazil.