Mercantile Bank (NASDAQ:MBWM – Get Free Report) is one of 919 public companies in the “Banks” industry, but how does it contrast to its competitors? We will compare Mercantile Bank to similar businesses based on the strength of its earnings, risk, analyst recommendations, institutional ownership, valuation, profitability and dividends.
Dividends
Mercantile Bank pays an annual dividend of $1.60 per share and has a dividend yield of 2.6%. Mercantile Bank pays out 28.5% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.2% and pay out 28.9% of their earnings in the form of a dividend. Mercantile Bank has increased its dividend for 14 consecutive years.
Risk and Volatility
Mercantile Bank has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500. Comparatively, Mercantile Bank’s competitors have a beta of 0.52, indicating that their average share price is 48% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Mercantile Bank and its competitors, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Mercantile Bank | 0 | 3 | 3 | 0 | 2.50 |
| Mercantile Bank Competitors | 7464 | 30193 | 27759 | 1465 | 2.35 |
Mercantile Bank presently has a consensus target price of $62.20, suggesting a potential upside of 0.47%. As a group, “Banks” companies have a potential upside of 13.94%. Given Mercantile Bank’s competitors higher probable upside, analysts clearly believe Mercantile Bank has less favorable growth aspects than its competitors.
Profitability
This table compares Mercantile Bank and its competitors’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Mercantile Bank | 24.42% | 13.37% | 1.43% |
| Mercantile Bank Competitors | 15.66% | 9.44% | 0.93% |
Institutional & Insider Ownership
58.6% of Mercantile Bank shares are held by institutional investors. Comparatively, 47.8% of shares of all “Banks” companies are held by institutional investors. 2.5% of Mercantile Bank shares are held by insiders. Comparatively, 9.8% of shares of all “Banks” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Mercantile Bank and its competitors revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Mercantile Bank | $371.80 million | $88.75 million | 11.04 |
| Mercantile Bank Competitors | $9.95 billion | $2.42 billion | 17.42 |
Mercantile Bank’s competitors have higher revenue and earnings than Mercantile Bank. Mercantile Bank is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
Summary
Mercantile Bank beats its competitors on 8 of the 15 factors compared.
Mercantile Bank Company Profile
Mercantile Bank Corporation operates as the bank holding company for Mercantile Bank of Michigan that provides commercial and retail banking services to small- to medium-sized businesses and individuals in the United States. It accepts various deposit products, including checking, savings, and term certificate accounts; time deposits; and certificates of deposit. The company also provides commercial and industrial loans; vacant land, land development, and residential construction loans; owner and non-owner occupied real estate loans; multi-family and residential rental property loans; single-family residential real estate loans; home equity line of credit programs; and consumer loans, such as new and used automobile and boat loans, and credit cards, as well as overdraft protection services; and residential mortgage and instalment loans. In addition, it offers courier services and safe deposit facilities; and insurance products, such as private passenger automobile, homeowners, personal inland marine, boat owners, recreational vehicle, dwelling fire, umbrella policies, small business, and life insurance products. The company was incorporated in 1997 and is headquartered in Grand Rapids, Michigan.
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