MB Financial (NASDAQ: MBFI) and SouthCrest Financial Group (OTCMKTS:SCSG) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.
Earnings and Valuation
This table compares MB Financial and SouthCrest Financial Group’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|MB Financial||$1.04 billion||3.90||$304.04 million||$2.39||20.16|
|SouthCrest Financial Group||$24.75 million||2.64||$13.66 million||N/A||N/A|
This table compares MB Financial and SouthCrest Financial Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|SouthCrest Financial Group||N/A||N/A||N/A|
MB Financial pays an annual dividend of $0.96 per share and has a dividend yield of 2.0%. SouthCrest Financial Group pays an annual dividend of $0.12 per share and has a dividend yield of 1.1%. MB Financial pays out 40.2% of its earnings in the form of a dividend. MB Financial has raised its dividend for 6 consecutive years. MB Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional & Insider Ownership
75.3% of MB Financial shares are owned by institutional investors. Comparatively, 5.1% of SouthCrest Financial Group shares are owned by institutional investors. 2.7% of MB Financial shares 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.
This is a breakdown of recent ratings and target prices for MB Financial and SouthCrest Financial Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|SouthCrest Financial Group||0||0||0||0||N/A|
MB Financial currently has a consensus price target of $47.74, suggesting a potential downside of 0.91%. Given MB Financial’s higher probable upside, analysts clearly believe MB Financial is more favorable than SouthCrest Financial Group.
Volatility and Risk
MB Financial has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500. Comparatively, SouthCrest Financial Group has a beta of 0.29, indicating that its share price is 71% less volatile than the S&P 500.
MB Financial beats SouthCrest Financial Group on 12 of the 14 factors compared between the two stocks.
About MB Financial
MB Financial, Inc. operates as a bank holding company for MB Financial Bank, N.A. that provides various financial services to small and middle market businesses, and individuals in the United States. The company operates through three segments: Banking, Leasing, and Mortgage Banking. The Banking segment offers commercial banking products, including working capital loans and lines of credit; accounts receivable financing; inventory and equipment financing; industrial revenue bond financing; ESOP financing; business acquisition loans; owner occupied real estate loans; asset-based loans; and financial, performance, and commercial letters of credit. Its commercial banking products also comprise deposit and treasury management products and services, such as Internet banking products, investment sweep and zero balance accounts, automated tax payments, ATM access, telephone banking, lockboxes, automated clearing house transactions, account reconciliation, controlled disbursement, information reporting, wire transfers, vault services, remote deposit capture, and checking accounts; capital markets and international banking services; and credit, deposit, and treasury management services for real estate operators and investors. In addition, this segment offers loans to equipment lessors; retail banking services; cards and bank sponsorships; and wealth management solutions. The Leasing segment provides lease originations and related services. This segment's lease portfolio consists of computer systems, satellite equipment, and medical equipment, as well as general manufacturing, industrial, construction, and transportation equipment. The Mortgage Banking segment originates and services residential mortgage loans for sale to investors. The company offers its products and services through 86 banking offices in the Chicago metropolitan area; and 129 ATMs. MB Financial, Inc. was founded in 1911 and is headquartered in Chicago, Illinois.
About SouthCrest Financial Group
SouthCrest Financial Group, Inc. operates as the bank holding company for SouthCrest Bank, N.A. that provides banking services. The company accepts checking, savings, and money market accounts; and certificates of deposit. Its loan products include personal loans for cars, boats, recreational vehicles, and other purchases; home equity lines of credit; loans on investment properties; owner occupied real estate, construction and development, equipment and inventory, practice, and Georgia entertainment tax credit financing; construction to permanent, investment real estate, and acquisition and development loans; and working capital and lines of credit. The company also offers credit and debit cards; remote deposit capture, positive pay, ACH, online wires, merchant, business payroll, and reorder checks services; and online banking, online bill pay, mobile banking and deposit, telephone banking, and ATM services. It serves retail, private, entrepreneurial, high-net-worth, and commercial customers. As of April 26, 2018, the company operated through 9 branches in Georgia. SouthCrest Financial Group, Inc. was founded in 1910 and is headquartered in Atlanta, Georgia.
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