Middlefield Banc (NASDAQ:MBCN) vs. Metropolitan Bank (NYSE:MCB) Financial Survey

Metropolitan Bank (NYSE:MCB) and Middlefield Banc (NASDAQ:MBCN) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, profitability, valuation, dividends and risk.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Metropolitan Bank and Middlefield Banc, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Metropolitan Bank	0	0	4	0	3.00
Middlefield Banc	0	2	0	0	2.00

Metropolitan Bank currently has a consensus target price of $78.13, indicating a potential upside of 17.46%. Middlefield Banc has a consensus target price of $28.50, indicating a potential downside of 1.55%. Given Metropolitan Bank’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Metropolitan Bank is more favorable than Middlefield Banc.

Profitability

This table compares Metropolitan Bank and Middlefield Banc’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Metropolitan Bank	13.55%	10.89%	1.02%
Middlefield Banc	14.31%	7.47%	0.85%

Volatility & Risk

Metropolitan Bank has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500. Comparatively, Middlefield Banc has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500.

Insider and Institutional Ownership

79.8% of Metropolitan Bank shares are held by institutional investors. Comparatively, 31.7% of Middlefield Banc shares are held by institutional investors. 6.5% of Metropolitan Bank shares are held by company insiders. Comparatively, 4.1% of Middlefield Banc shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Metropolitan Bank and Middlefield Banc”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Metropolitan Bank	$280.79 million	2.53	$66.69 million	$5.91	11.25
Middlefield Banc	$69.17 million	3.38	$15.52 million	$2.01	14.40

Metropolitan Bank has higher revenue and earnings than Middlefield Banc. Metropolitan Bank is trading at a lower price-to-earnings ratio than Middlefield Banc, indicating that it is currently the more affordable of the two stocks.

Summary

Metropolitan Bank beats Middlefield Banc on 11 of the 14 factors compared between the two stocks.

About Metropolitan Bank

Metropolitan Bank Holding Corp. operates as the bank holding company for Metropolitan Commercial Bank that provides a range of business, commercial, and retail banking products and services to small businesses, middle-market enterprises, public entities, and individuals in the New York metropolitan area. The company offers checking, savings, term deposit, money market, demand deposit, and other interest-bearing transaction accounts. It also provides lending products, including commercial real estate, multi-family, construction, and one-to four-family real estate loans; commercial and industrial loans; consumer loans; acquisition and renovation loans; loans to refinance or return borrower equity; loans on owner-occupied properties; working capital lines of credit; trade finance and letters of credit; and term loans. In addition, the company offers cash management services, as well as online and mobile banking, ACH, remote deposit capture, and debit cards. The company was formerly known as Metbank Holding Corp. and changed its name to Metropolitan Bank Holding Corp. in January 2007. Metropolitan Bank Holding Corp. was incorporated in 1997 and is headquartered in New York, New York.

About Middlefield Banc

Middlefield Banc Corp. operates as the bank holding company for The Middlefield Banking Company that provides various commercial banking services to small and medium-sized businesses, professionals, small business owners, and retail customers in northeastern and central Ohio. It offers checking, savings, negotiable order of withdrawal accounts, money market accounts, time certificates of deposit, commercial loans, real estate loans, various consumer loans, safe deposit facilities, and travelers' checks. The company also provides operational and working capital, term business, residential construction, professional, and residential and mortgage loans, as well as consumer installment loans for home improvements, automobiles, boats, and other personal expenditures; loans to finance capital purchases; selected guaranteed or subsidized loan programs for small businesses; and agricultural loans. In addition, the company resolves and disposes troubled assets in Ohio. Further, it offers official checks, money orders, and ATM services, as well as IRA accounts; online banking and bill payment services to individuals; and online cash management services to business customers. Middlefield Banc Corp. was founded in 1901 and is headquartered in Middlefield, Ohio.