M&F Bancorp (OTCMKTS:MFBP) and Cambridge Bancorp (NASDAQ:CATC) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, institutional ownership, earnings, profitability and valuation.
Volatility and Risk
M&F Bancorp has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Cambridge Bancorp has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500.
M&F Bancorp pays an annual dividend of $0.06 per share and has a dividend yield of 1.4%. Cambridge Bancorp pays an annual dividend of $2.12 per share and has a dividend yield of 3.8%. Cambridge Bancorp pays out 34.2% of its earnings in the form of a dividend. Cambridge Bancorp has increased its dividend for 2 consecutive years. Cambridge Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings and Valuation
This table compares M&F Bancorp and Cambridge Bancorp’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Cambridge Bancorp||$132.74 million||2.28||$25.26 million||$6.20||9.02|
Cambridge Bancorp has higher revenue and earnings than M&F Bancorp.
This is a summary of recent ratings and recommmendations for M&F Bancorp and Cambridge Bancorp, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Cambridge Bancorp has a consensus target price of $74.50, suggesting a potential upside of 33.25%. Given Cambridge Bancorp’s higher probable upside, analysts clearly believe Cambridge Bancorp is more favorable than M&F Bancorp.
Insider & Institutional Ownership
47.7% of Cambridge Bancorp shares are owned by institutional investors. 2.9% of M&F Bancorp shares are owned by insiders. Comparatively, 2.6% of Cambridge Bancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This table compares M&F Bancorp and Cambridge Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Cambridge Bancorp beats M&F Bancorp on 9 of the 12 factors compared between the two stocks.
About M&F Bancorp
M&F Bancorp, Inc. operates as a holding company for Mechanics and Farmers Bank. The company operates through its wholly-owned subsidiary, Mechanics and Farmers Bank. It offers banking services which includes checking accounts; savings accounts; Negotiable Order of Withdrawal accounts; money market accounts; certificates of deposit; individual retirement accounts; loans for real estate, construction, businesses, personal use, home improvement and automobiles; equity lines of credit; credit lines; consumer loans; credit cards; safe deposit boxes; bank money orders; internet banking; electronic funds transfer services including wire transfers; traveler’s checks; and notary services. M&F Bancorp was founded in 1999 and is headquartered in Durham, NC.
About Cambridge Bancorp
Cambridge Bancorp operates as the bank holding company for Cambridge Trust Company that provides commercial and consumer banking, and investment management and trust services. The company accepts various deposits, such as checking and savings accounts, certificates of deposit, money market accounts, individual retirement accounts, and time and demand deposits. Its loans products include residential and commercial real estate loans; home equity lines of credit and term loans; commercial and industrial loans; secured and unsecured loans, lines of credit, and personal installment loans; and construction loans. The company also offers cash management, online and mobile banking, and payments services. It serves commercial enterprises, non-profit organizations, and individuals. The company operates 10 Massachusetts locations in Cambridge, Boston, Belmont, Concord, Lexington, and Weston; and wealth management offices in Boston, Massachusetts, as well as in Concord, Manchester, and Portsmouth, New Hampshire. Cambridge Bancorp was founded in 1890 and is headquartered in Cambridge, Massachusetts.
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