Comparing Midland States Bancorp (MSBI) and Bank of N.T. Butterfield & Son Limited (The) (NYSE:NTB)

Midland States Bancorp (NASDAQ: MSBI) and Bank of N.T. Butterfield & Son Limited (The) (NYSE:NTB) are both small-cap financials companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.

Insider and Institutional Ownership

46.6% of Midland States Bancorp shares are held by institutional investors. Comparatively, 71.1% of Bank of N.T. Butterfield & Son Limited (The) shares are held by institutional investors. 14.9% of Midland States 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

Midland States Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 2.4%. Bank of N.T. Butterfield & Son Limited (The) pays an annual dividend of $1.28 per share and has a dividend yield of 3.6%. Midland States Bancorp pays out 41.0% of its earnings in the form of a dividend. Bank of N.T. Butterfield & Son Limited (The) pays out 84.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Midland States Bancorp and Bank of N.T. Butterfield & Son Limited (The)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Midland States Bancorp 8.23% 3.59% 0.36%
Bank of N.T. Butterfield & Son Limited (The) 19.54% 17.93% 1.31%

Earnings and Valuation

This table compares Midland States Bancorp and Bank of N.T. Butterfield & Son Limited (The)’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Midland States Bancorp $178.81 million 3.61 $37.24 million $1.95 17.36
Bank of N.T. Butterfield & Son Limited (The) $427.52 million 4.53 $82.96 million $1.52 23.37

Bank of N.T. Butterfield & Son Limited (The) has higher revenue and earnings than Midland States Bancorp. Midland States Bancorp is trading at a lower price-to-earnings ratio than Bank of N.T. Butterfield & Son Limited (The), indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and price targets for Midland States Bancorp and Bank of N.T. Butterfield & Son Limited (The), as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Midland States Bancorp 0 0 1 0 3.00
Bank of N.T. Butterfield & Son Limited (The) 0 1 1 0 2.50

Midland States Bancorp currently has a consensus price target of $37.00, indicating a potential upside of 9.31%. Bank of N.T. Butterfield & Son Limited (The) has a consensus price target of $37.50, indicating a potential upside of 5.57%. Given Midland States Bancorp’s stronger consensus rating and higher possible upside, equities analysts clearly believe Midland States Bancorp is more favorable than Bank of N.T. Butterfield & Son Limited (The).

Summary

Bank of N.T. Butterfield & Son Limited (The) beats Midland States Bancorp on 8 of the 14 factors compared between the two stocks.

About Midland States Bancorp

Midland States Bancorp, Inc. is a diversified financial holding company. The Company’s banking subsidiary is Midland States Bank (the Bank). The Company’s principal business activity has been lending to and accepting deposits from individuals, businesses, municipalities and other entities. The Company’s segments include Banking, which provides a range of financial products and services to consumers and businesses, including loan products; commercial equipment leasing; mortgage loan sales and servicing; letters of credit; various types of deposit products, including checking, savings and time deposit accounts; merchant services, and corporate treasury management services; Commercial Federal Housing Administration (FHA) Origination and Servicing, which provides for the origination and servicing of government sponsored mortgages for multifamily and healthcare facilities, and Other, which includes the operating results of the Company and its wealth management business unit.

About Bank of N.T. Butterfield & Son Limited (The)

The Bank of N.T. Butterfield & Son Limited (the Bank) provides banking services and wealth management services. The Bank’s geographic segments include Bermuda, the Cayman Islands and Guernsey, where its banking operations are located, and The Bahamas, Switzerland, and the United Kingdom, where it offers specialized financial services. It offers banking services, including retail and corporate banking, and wealth management, which consists of trust, private banking, and asset management. In Bermuda and Cayman Islands segments, it offers both banking and wealth management. In Guernsey, Bahamas, and Switzerland segments, it offers wealth management. In the United Kingdom segment, it offers residential property lending. The Bank provides foreign exchange services in the normal course of business in all jurisdictions. Its wealth management platform has three lines of business: trust, private banking, and asset management.

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