Monarch Financial (NASDAQ: MNRK) is one of 311 public companies in the “Banks” industry, but how does it compare to its rivals? We will compare Monarch Financial to similar companies based on the strength of its valuation, dividends, institutional ownership, risk, earnings, profitability and analyst recommendations.
Volatility & Risk
Monarch Financial has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500. Comparatively, Monarch Financial’s rivals have a beta of 0.79, suggesting that their average stock price is 21% less volatile than the S&P 500.
This table compares Monarch Financial and its rivals top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Monarch Financial Competitors||$5.55 billion||$833.70 million||384.57|
Monarch Financial’s rivals have higher revenue and earnings than Monarch Financial. Monarch Financial is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
This table compares Monarch Financial and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Monarch Financial Competitors||18.50%||8.31%||0.94%|
Institutional and Insider Ownership
52.0% of shares of all “Banks” companies are owned by institutional investors. 10.4% of shares of all “Banks” companies are owned 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.
Monarch Financial pays an annual dividend of $0.36 per share and has a dividend yield of 1.9%. Monarch Financial pays out 28.6% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 1.9% and pay out 35.3% of their earnings in the form of a dividend. Monarch Financial is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.
This is a breakdown of current ratings and recommmendations for Monarch Financial and its rivals, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Monarch Financial Competitors||2354||8453||8675||368||2.36|
As a group, “Banks” companies have a potential downside of 9.30%. Given Monarch Financial’s rivals higher probable upside, analysts plainly believe Monarch Financial has less favorable growth aspects than its rivals.
Monarch Financial rivals beat Monarch Financial on 7 of the 11 factors compared.
About Monarch Financial
Monarch Financial Holdings, Inc. (Monarch) is a Virginia-chartered bank holding company. The Company is engaged in commercial and retail banking; investment and insurance sales, and mortgage origination and brokerage. The Company conducts its operations through its subsidiary, Monarch Bank (the Bank), and its two subsidiaries, Monarch Investment, LLC and Monarch Capital, LLC. The Company operates through two segments: community banking (banking) and retail mortgage banking services (mortgage banking). The Company’s community banking segment involves making loans to and generating deposits from individuals and businesses. Monarch’s mortgage banking services consist of originating residential loans and subsequently selling them to investors. Monarch also does business in various markets, such as OBX Bank, Monarch Bank Private Wealth, Monarch Mortgage and under various names through joint ventures with other partners.
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