Mid Penn Bancorp (NASDAQ:MPB – Get Free Report) and Freedom Financial (OTCMKTS:FDVA – Get Free Report) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, profitability, risk, institutional ownership and earnings.
Analyst Ratings
This is a summary of current recommendations and price targets for Mid Penn Bancorp and Freedom Financial, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Mid Penn Bancorp | 0 | 1 | 2 | 0 | 2.67 |
| Freedom Financial | 0 | 0 | 0 | 0 | 0.00 |
Mid Penn Bancorp currently has a consensus target price of $37.50, suggesting a potential upside of 6.59%. Given Mid Penn Bancorp’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Mid Penn Bancorp is more favorable than Freedom Financial.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Mid Penn Bancorp | $350.61 million | 2.54 | $56.25 million | $2.20 | 15.99 |
| Freedom Financial | $63.61 million | 1.36 | $380,000.00 | ($0.07) | -173.57 |
Mid Penn Bancorp has higher revenue and earnings than Freedom Financial. Freedom 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.
Risk & Volatility
Mid Penn Bancorp has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500. Comparatively, Freedom Financial has a beta of 0.08, indicating that its stock price is 92% less volatile than the S&P 500.
Insider and Institutional Ownership
43.1% of Mid Penn Bancorp shares are held by institutional investors. 7.2% of Mid Penn Bancorp shares are held by insiders. Comparatively, 13.3% of Freedom Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Mid Penn Bancorp and Freedom Financial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Mid Penn Bancorp | 13.95% | 8.31% | 1.06% |
| Freedom Financial | -0.78% | -0.57% | -0.05% |
Summary
Mid Penn Bancorp beats Freedom Financial on 13 of the 14 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 Freedom Financial
Freedom Financial Holdings, Inc. operates as the bank holding company for The Freedom Bank of Virginia that provides commercial banking, personal banking, and mortgage banking solutions. The company offers personal and business checking accounts, interest bearing business savings accounts, money market accounts, personal savings accounts, certificates of deposits, and IRAs, as well as insured cash sweep and certificate of deposit account registry services. It also provides business term, personal, and mortgage loans; commercial lines of credit; commercial real estate mortgage and small business lending services; home equity lines; and credit cards. In addition, the company offers treasury management, online and mobile banking, remote deposit capture, ACH, and wire transfer services; business valuation, bank-at-work, and merchant services; and prestige banking services. The company was founded in 2001 and is headquartered in Fairfax, Virginia.
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