Financial Survey: Equity BancShares (EQBK) and MidWestOne Financial Group (MOFG)

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

Institutional and Insider Ownership

60.3% of Equity BancShares shares are owned by institutional investors. Comparatively, 45.7% of MidWestOne Financial Group shares are owned by institutional investors. 14.9% of Equity BancShares shares are owned by company insiders. Comparatively, 7.2% of MidWestOne Financial Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Equity BancShares 17.33% 9.04% 1.07%
MidWestOne Financial Group 14.13% 7.09% 0.76%

Dividends

MidWestOne Financial Group pays an annual dividend of $0.78 per share and has a dividend yield of 2.2%. Equity BancShares does not pay a dividend. MidWestOne Financial Group pays out 43.1% of its earnings in the form of a dividend. MidWestOne Financial Group has increased its dividend for 5 consecutive years.

Valuation and Earnings

This table compares Equity BancShares and MidWestOne Financial Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Equity BancShares $118.13 million 5.39 $20.64 million $1.98 20.36
MidWestOne Financial Group $141.69 million 2.99 $18.69 million $1.81 19.17

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

Risk and Volatility

Equity BancShares has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500. Comparatively, MidWestOne Financial Group has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Equity BancShares and MidWestOne Financial Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Equity BancShares 0 0 2 0 3.00
MidWestOne Financial Group 0 0 1 0 3.00

Equity BancShares currently has a consensus price target of $46.00, suggesting a potential upside of 14.09%. MidWestOne Financial Group has a consensus price target of $37.00, suggesting a potential upside of 6.66%. Given Equity BancShares’ higher probable upside, equities analysts plainly believe Equity BancShares is more favorable than MidWestOne Financial Group.

Summary

Equity BancShares beats MidWestOne Financial Group on 12 of the 16 factors compared between the two stocks.

Equity BancShares Company Profile

Equity Bancshares, Inc. operates as a bank holding company for Equity Bank that provides a range of financial services primarily to businesses, business owners, and individuals. The company accepts various deposit products, including demand, savings, money market, and time deposits. Its loan products include commercial and industrial, commercial real estate-backed, commercial lines of credit, working capital, term, equipment financing, acquisition, expansion and development, borrowing base, real estate construction loans, homebuilder, agricultural, government guaranteed, and other loans, as well as letters of credit to national and regional companies, restaurant franchisees, hoteliers, real estate developers, manufacturing and industrial companies, agribusiness companies, and other businesses. The company's loan products also comprise various consumer loans to individuals and professionals, including residential real estate loans, home equity loans, home equity lines of credit, installment loans, unsecured and secured personal lines of credit, overdraft protection, and letters of credit. It also provides debit cards; online banking solutions, such as access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; mobile banking solutions comprising remote check deposits with mobile bill pay; ATMs; and treasury management, wire transfer, and automated clearing house and stop payment services. In addition, the company offers cash management deposit products, such as lockbox, remote deposit capture, positive pay, reverse positive pay, account reconciliation services, zero balance accounts, and sweep accounts, as well as banking services through telephone, mail, and personal appointments. As of February 22, 2018, it operated 42 full-service branches located in Kansas, Missouri, Arkansas, and Oklahoma. Equity Bancshares, Inc. was founded in 2002 and is headquartered in Wichita, Kansas.

MidWestOne Financial Group Company Profile

MidWestOne Financial Group, Inc. operates as the bank holding company for MidWestOne Bank that provides commercial and retail banking products and services to individuals, businesses, institutional customers, and government agencies in Iowa, Minnesota, Wisconsin, Florida, and Colorado. It offers deposit products, such as checking and other demand deposit accounts, NOW accounts, savings accounts, money market accounts, certificates of deposit, individual retirement accounts, and other time deposits. The company also provides commercial and industrial loans, agricultural loans, commercial and residential real estate loans, and consumer loans. In addition, it offers other products and services comprising debit cards, automated teller machines, online banking, mobile banking, and safe deposit boxes. Further, the company provides various trust and investment services, including administering estates, personal trusts, and conservatorships, as well as property management, farm management, custodial, financial planning, investment management, and retail brokerage services. Additionally, it offers property and casualty insurance products to individuals and small businesses. The company operates a total of 44 banking offices. MidWestOne Financial Group, Inc. was incorporated in 1983 and is headquartered in Iowa City, Iowa.

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