Critical Survey: MidWestOne Financial Group (NASDAQ:MOFG) vs. Select Bancorp (NASDAQ:SLCT)

MidWestOne Financial Group (NASDAQ:MOFG) and Select Bancorp (NASDAQ:SLCT) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, risk, earnings and institutional ownership.

Institutional & Insider Ownership

33.9% of MidWestOne Financial Group shares are owned by institutional investors. Comparatively, 47.6% of Select Bancorp shares are owned by institutional investors. 3.3% of MidWestOne Financial Group shares are owned by insiders. Comparatively, 15.9% of Select Bancorp shares are owned by 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.



Analyst Ratings

This is a breakdown of current ratings for MidWestOne Financial Group and Select Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MidWestOne Financial Group 0 0 0 0 N/A
Select Bancorp 0 0 1 0 3.00

Dividends

MidWestOne Financial Group pays an annual dividend of $0.81 per share and has a dividend yield of 2.9%. Select Bancorp does not pay a dividend. MidWestOne Financial Group pays out 31.9% of its earnings in the form of a dividend. MidWestOne Financial Group has increased its dividend for 6 consecutive years.

Profitability

This table compares MidWestOne Financial Group and Select Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MidWestOne Financial Group 19.41% 8.80% 0.95%
Select Bancorp 24.54% 7.91% 1.22%

Volatility & Risk

MidWestOne Financial Group has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500. Comparatively, Select Bancorp has a beta of 0.34, indicating that its stock price is 66% less volatile than the S&P 500.

Valuation and Earnings

This table compares MidWestOne Financial Group and Select Bancorp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MidWestOne Financial Group $151.61 million 2.96 $30.35 million $2.54 10.86
Select Bancorp $61.54 million 3.55 $13.78 million $0.95 11.91

MidWestOne Financial Group has higher revenue and earnings than Select Bancorp. MidWestOne Financial Group is trading at a lower price-to-earnings ratio than Select Bancorp, indicating that it is currently the more affordable of the two stocks.

Summary

Select Bancorp beats MidWestOne Financial Group on 8 of the 15 factors compared between the two stocks.

MidWestOne Financial Group Company Profile

MidWestOne Financial Group, Inc. is a bank holding company. It operates through the following subsidiaries: MidWestOne Bank and MidWestOne Insurance Services, Inc. The MidWestOne Bank provides retail banking services, which include deposit products, including checking and other demand deposit accounts, NOW accounts, savings accounts, money market accounts, certificates of deposit, individual retirement accounts and other time deposits. The MidWestOne Insurance Services, Inc. provides personal and business insurance services in Iowa. The firm offers commercial and industrial, agricultural, real estate mortgage and consumer loans. Its other products and services include debit cards, automated teller machines, on-line banking, mobile banking and safe deposit boxes. The company has a trust and investment department through which it offers a variety of trust and investment services, including administering estates, personal trusts, conservatorships, pension and profit-sharing funds and providing property management, farm management, custodial, financial planning, investment management and retail brokerage services. MidWestOne Financial Group was founded in 1934 and is headquartered in Iowa City, IA.

Select Bancorp Company Profile

Select Bancorp, Inc. operates as the bank holding company for Select Bank & Trust Company that provides banking services to individuals and small to medium-sized businesses. The company accepts deposit products, such as non-interest-bearing demand deposits, Money market deposit and NOW accounts, savings accounts, and time deposits, as well as certificates of deposit. Its loan products include 1-to-4 family residential, commercial real estate, multi-family residential, construction, and commercial and industrial loans; loans to individuals; and home equity lines of credit and overdrafts. Select Bancorp, Inc. operates a network of branch offices in Burlington, Charlotte, Clinton, Elizabeth City, Fayetteville, Goldsboro, Greenville, Leland, Lillington, Lumberton, Morehead City, Raleigh, Washington, and Wilmington, North Carolina; and Rock Hill, Blacksburg, and Six Mile, South Carolina. The company was formerly known as New Century Bancorp, Inc. and changed its name to Select Bancorp, Inc. in July 2014. Select Bancorp, Inc. was founded in 2000 and is headquartered in Dunn, North Carolina.

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