Mercantile Bank (NASDAQ: MBWM) is one of 200 publicly-traded companies in the “Commercial Banks” industry, but how does it compare to its peers? We will compare Mercantile Bank to related businesses based on the strength of its dividends, valuation, earnings, analyst recommendations, profitability, institutional ownership and risk.
Insider & Institutional Ownership
54.2% of Mercantile Bank shares are held by institutional investors. Comparatively, 47.0% of shares of all “Commercial Banks” companies are held by institutional investors. 3.2% of Mercantile Bank shares are held by company insiders. Comparatively, 11.8% of shares of all “Commercial Banks” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This is a summary of current recommendations and price targets for Mercantile Bank and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Mercantile Bank Competitors||384||2927||2351||68||2.37|
Mercantile Bank currently has a consensus price target of $34.50, suggesting a potential downside of 1.15%. As a group, “Commercial Banks” companies have a potential upside of 6.13%. Given Mercantile Bank’s peers stronger consensus rating and higher possible upside, analysts clearly believe Mercantile Bank has less favorable growth aspects than its peers.
Mercantile Bank pays an annual dividend of $0.76 per share and has a dividend yield of 2.2%. Mercantile Bank pays out 39.8% of its earnings in the form of a dividend. As a group, “Commercial Banks” companies pay a dividend yield of 1.9% and pay out 35.4% of their earnings in the form of a dividend.
Risk and Volatility
Mercantile Bank has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500. Comparatively, Mercantile Bank’s peers have a beta of 0.74, meaning that their average share price is 26% less volatile than the S&P 500.
Valuation and Earnings
This table compares Mercantile Bank and its peers gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Mercantile Bank||$139.49 million||$31.91 million||18.27|
|Mercantile Bank Competitors||$338.81 million||$71.86 million||21.11|
Mercantile Bank’s peers have higher revenue and earnings than Mercantile Bank. Mercantile Bank is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
This table compares Mercantile Bank and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Mercantile Bank Competitors||20.42%||8.68%||0.93%|
Mercantile Bank peers beat Mercantile Bank on 10 of the 15 factors compared.
Mercantile Bank Company Profile
Mercantile Bank Corporation is a bank holding company. The Company owns the Mercantile Bank of Michigan (the Bank). The Bank is a state banking company. The Bank provides commercial banking services primarily to small- to medium-sized businesses and retail banking services. The Bank makes secured and unsecured commercial, construction, mortgage and consumer loans, and accepts checking, savings and time deposits. The Bank also enables customers to conduct certain loan and deposit transactions by personal computer and through mobile applications. Courier service is provided to certain commercial customers, and safe deposit facilities are available at its office locations. The Bank’s commercial lending group originates commercial loans and leases primarily in its market areas. The Bank’s primary deposit products are checking, savings and term certificate accounts.
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