Mid Penn Bancorp (MPB) vs. The Competition Critical Review

Mid Penn Bancorp (NASDAQ:MPB) is one of 919 publicly-traded companies in the “Banks” industry, but how does it weigh in compared to its competitors? We will compare Mid Penn Bancorp to related businesses based on the strength of its institutional ownership, valuation, earnings, risk, profitability, dividends and analyst recommendations.

Dividends

Mid Penn Bancorp pays an annual dividend of $0.92 per share and has a dividend yield of 2.7%. Mid Penn Bancorp pays out 31.9% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.3% and pay out 28.9% of their earnings in the form of a dividend. Mid Penn Bancorp lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Mid Penn Bancorp and its competitors’ 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%
Mid Penn Bancorp Competitors	15.64%	9.43%	0.93%

Valuation and Earnings

This table compares Mid Penn Bancorp and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Mid Penn Bancorp	$260.62 million	$56.25 million	11.97
Mid Penn Bancorp Competitors	$297.20 billion	$2.42 billion	20.30

Mid Penn Bancorp’s competitors have higher revenue and earnings than Mid Penn Bancorp. Mid Penn Bancorp is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

Mid Penn Bancorp has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500. Comparatively, Mid Penn Bancorp’s competitors have a beta of 0.61, meaning that their average stock price is 39% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Mid Penn Bancorp and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mid Penn Bancorp	0	1	4	0	2.80
Mid Penn Bancorp Competitors	7470	30209	27786	1473	2.35

Mid Penn Bancorp presently has a consensus price target of $39.67, suggesting a potential upside of 15.11%. As a group, “Banks” companies have a potential upside of 17.08%. Given Mid Penn Bancorp’s competitors higher possible upside, analysts clearly believe Mid Penn Bancorp has less favorable growth aspects than its competitors.

Institutional and Insider Ownership

43.1% of Mid Penn Bancorp shares are owned by institutional investors. Comparatively, 48.0% of shares of all “Banks” companies are owned by institutional investors. 7.2% of Mid Penn Bancorp shares are owned by company insiders. Comparatively, 9.8% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Mid Penn Bancorp competitors beat Mid Penn Bancorp on 11 of the 15 factors compared.

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.