Monarch Financial (NASDAQ: MNRK) is one of 308 publicly-traded companies in the “Banks” industry, but how does it weigh in compared to its competitors? We will compare Monarch Financial to similar companies based on the strength of its profitability, dividends, risk, institutional ownership, earnings, valuation and analyst recommendations.
This table compares Monarch Financial and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Monarch Financial Competitors||18.60%||8.30%||0.93%|
This is a breakdown of current ratings and price targets for Monarch Financial and its competitors, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Monarch Financial Competitors||2197||8542||8560||337||2.36|
As a group, “Banks” companies have a potential downside of 7.12%. Given Monarch Financial’s competitors higher probable upside, analysts clearly believe Monarch Financial has less favorable growth aspects than its competitors.
Institutional & Insider Ownership
52.1% 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 endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Risk & Volatility
Monarch Financial has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500. Comparatively, Monarch Financial’s competitors have a beta of 0.78, suggesting that their average share price is 22% less volatile than the S&P 500.
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 34.6% of their earnings in the form of a dividend. Monarch Financial is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.
Earnings and Valuation
This table compares Monarch Financial and its competitors revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Monarch Financial Competitors||$5.50 billion||$827.87 million||381.87|
Monarch Financial’s competitors have higher revenue and earnings than Monarch Financial. Monarch Financial 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.
Monarch Financial competitors beat Monarch Financial on 7 of the 11 factors compared.
Monarch Financial Company Profile
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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