Mid Penn Bancorp (NASDAQ:MPB – Get Free Report) and AmeriServ Financial (NASDAQ:ASRV – Get Free Report) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, risk, profitability and earnings.
Institutional & Insider Ownership
43.1% of Mid Penn Bancorp shares are held by institutional investors. Comparatively, 31.5% of AmeriServ Financial shares are held by institutional investors. 7.2% of Mid Penn Bancorp shares are held by insiders. Comparatively, 7.6% of AmeriServ Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Volatility and Risk
Mid Penn Bancorp has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500. Comparatively, AmeriServ Financial has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Mid Penn Bancorp | 13.95% | 8.31% | 1.06% |
| AmeriServ Financial | 6.20% | 4.72% | 0.38% |
Dividends
Mid Penn Bancorp pays an annual dividend of $0.88 per share and has a dividend yield of 2.7%. AmeriServ Financial pays an annual dividend of $0.12 per share and has a dividend yield of 3.2%. Mid Penn Bancorp pays out 40.0% of its earnings in the form of a dividend. AmeriServ Financial pays out 36.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. AmeriServ Financial is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings & Valuation
This table compares Mid Penn Bancorp and AmeriServ Financial”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Mid Penn Bancorp | $350.61 million | 2.33 | $56.25 million | $2.20 | 14.68 |
| AmeriServ Financial | $88.34 million | 0.72 | $5.61 million | $0.33 | 11.41 |
Mid Penn Bancorp has higher revenue and earnings than AmeriServ Financial. AmeriServ Financial is trading at a lower price-to-earnings ratio than Mid Penn Bancorp, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings for Mid Penn Bancorp and AmeriServ Financial, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Mid Penn Bancorp | 0 | 1 | 1 | 0 | 2.50 |
| AmeriServ Financial | 0 | 0 | 1 | 0 | 3.00 |
Mid Penn Bancorp currently has a consensus price target of $37.00, indicating a potential upside of 14.59%. Given Mid Penn Bancorp’s higher possible upside, equities analysts plainly believe Mid Penn Bancorp is more favorable than AmeriServ Financial.
Summary
Mid Penn Bancorp beats AmeriServ Financial on 11 of the 15 factors compared between the two stocks.
About Mid Penn Bancorp
Mid Penn Bancorp, Inc. operates as the bank holding company for Mid Penn Bank that provides commercial banking services to individuals, partnerships, non-profit organizations, and corporations. The company offers various time and demand deposit products, including checking accounts, savings accounts, clubs, money market deposit accounts, certificates of deposit, and individual retirement accounts. It also provides a range of loan products comprising mortgage and home equity loans, secured and unsecured commercial and consumer loans, lines of credit, construction financing, farm loans, community development loans, loans to non-profit entities, and local government loans. In addition, the company offers trust, retail investment, wealth management, and insurance services; and provides online banking, telephone banking, cash management, and automated teller services, as well as safe deposit boxes. The company was founded in 1868 and is headquartered in Harrisburg, Pennsylvania.
About AmeriServ Financial
AmeriServ Financial, Inc. is a holding company, which engages in the provision of consumer, mortgage and commercial financial products and services through its subsidiary. It operates through the following segments: Community Banking, Wealth Management, and Investment or Parent. The Community Banking segment includes both retail and commercial banking activities. The Wealth Management segment involves in the operations of a Trust Company, West Chester Capital Advisors an investment advisory firm, and Financial Services. The Investment or Parent segment offers investment securities, borrowing activities, and general corporate expenses. The company was founded in January 1983 and is headquartered in Johnstown, PA.
Receive News & Ratings for Mid Penn Bancorp Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Mid Penn Bancorp and related companies with MarketBeat.com's FREE daily email newsletter.
