Financial Comparison: City (CHCO) & MBT Financial (MBTF)

City (NASDAQ:CHCO) and MBT Financial (NASDAQ:MBTF) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, valuation and analyst recommendations.

Volatility & Risk

City has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, MBT Financial has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500.



Profitability

This table compares City and MBT Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
City 31.15% 15.26% 1.80%
MBT Financial 28.62% 15.54% 1.40%

Institutional & Insider Ownership

65.7% of City shares are owned by institutional investors. Comparatively, 51.5% of MBT Financial shares are owned by institutional investors. 3.8% of City shares are owned by company insiders. Comparatively, 22.9% of MBT Financial shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

City pays an annual dividend of $2.12 per share and has a dividend yield of 2.8%. MBT Financial pays an annual dividend of $0.40 per share and has a dividend yield of 3.9%. City pays out 41.1% of its earnings in the form of a dividend. City has raised its dividend for 7 consecutive years and MBT Financial has raised its dividend for 2 consecutive years.

Earnings and Valuation

This table compares City and MBT Financial’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
City $224.46 million 5.53 $70.00 million $5.16 14.56
MBT Financial $61.83 million 3.85 $17.70 million N/A N/A

City has higher revenue and earnings than MBT Financial.

Analyst Ratings

This is a summary of current ratings and recommmendations for City and MBT Financial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
City 0 2 1 0 2.33
MBT Financial 0 1 2 0 2.67

City presently has a consensus price target of $77.00, indicating a potential upside of 2.50%. MBT Financial has a consensus price target of $12.00, indicating a potential upside of 16.17%. Given MBT Financial’s stronger consensus rating and higher possible upside, analysts clearly believe MBT Financial is more favorable than City.

Summary

City beats MBT Financial on 9 of the 16 factors compared between the two stocks.

About City

City Holding Company operates as a holding company for City National Bank of West Virginia that provides various banking, trust and investment management, and other financial solutions in the United States. The company accepts various deposit products, such as checking, savings, and money market accounts, as well as certificates of deposit and individual retirement accounts. It also provides commercial and industrial loans that consist of loans to corporate and other legal entity borrowers primarily in small to mid-size industrial and commercial companies; commercial real estate loans comprising commercial mortgages, which are secured by nonresidential and multi-family residential properties; residential real estate loans to consumers for the purchase or refinance of a residence; first-lien home equity loans; consumer loans that are secured and unsecured by automobiles, boats, recreational vehicles, certificates of deposit, and other personal property; and demand deposit account overdrafts. In addition, the company offers mortgage banking services, including fixed and adjustable-rate mortgages, construction financing, production of conventional and government insured mortgages, secondary marketing, and mortgage servicing. Further, it provides deposit services for commercial customers comprising treasury management, lockbox, and other cash management services; merchant credit card services; wealth management, trust, investment, and custodial services for commercial and individual customers; and corporate trust and institutional custody, financial and estate planning, and retirement plan services, as well as automated-teller-machine, interactive-teller-machine, mobile banking, and debit card services. As of January 31, 2018, the company operated through a network of 86 branches in West Virginia, Virginia, Kentucky, and Ohio. City Holding Company was founded in 1957 and is headquartered in Charleston, West Virginia.

About MBT Financial

MBT Financial Corp. operates as the bank holding company for the Monroe Bank & Trust that provides retail and commercial banking, and trust services to small and middle-market businesses and middle-income individuals. It offers checking and savings accounts, time deposits, and IRAs; and commercial loans, personal loans, real estate mortgage loans, and installment loans. The company also provides safe deposit facilities, ATM and night depository facilities, treasury management services, telephone and Internet banking, personal trust, employee benefit, and investment management services. It operates through a network of 20 full service branches in Monroe and Wayne counties, Michigan; and provides wealth management services. The company was founded in 1858 and is headquartered in Monroe, Michigan.

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