Magyar Bancorp (NASDAQ:MGYR – Get Free Report) and John Marshall Bancorp (NASDAQ:JMSB – Get Free Report) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.
Insider & Institutional Ownership
46.3% of Magyar Bancorp shares are owned by institutional investors. Comparatively, 39.1% of John Marshall Bancorp shares are owned by institutional investors. 11.1% of Magyar Bancorp shares are owned by insiders. Comparatively, 12.6% of John Marshall Bancorp shares are owned 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.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Magyar Bancorp and John Marshall Bancorp, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Magyar Bancorp | 0 | 1 | 0 | 0 | 2.00 |
| John Marshall Bancorp | 0 | 1 | 2 | 1 | 3.00 |
Dividends
Magyar Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 2.0%. John Marshall Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 1.7%. Magyar Bancorp pays out 21.4% of its earnings in the form of a dividend. John Marshall Bancorp pays out 23.1% 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. Magyar Bancorp has increased its dividend for 3 consecutive years. Magyar Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Profitability
This table compares Magyar Bancorp and John Marshall Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Magyar Bancorp | 18.89% | 9.59% | 1.13% |
| John Marshall Bancorp | 20.41% | 9.16% | 1.04% |
Volatility and Risk
Magyar Bancorp has a beta of 0.24, suggesting that its share price is 76% less volatile than the S&P 500. Comparatively, John Marshall Bancorp has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500.
Valuation & Earnings
This table compares Magyar Bancorp and John Marshall Bancorp”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Magyar Bancorp | $58.42 million | 2.19 | $9.76 million | $1.87 | 10.59 |
| John Marshall Bancorp | $115.33 million | 2.86 | $21.23 million | $1.73 | 13.50 |
John Marshall Bancorp has higher revenue and earnings than Magyar Bancorp. Magyar Bancorp is trading at a lower price-to-earnings ratio than John Marshall Bancorp, indicating that it is currently the more affordable of the two stocks.
Summary
John Marshall Bancorp beats Magyar Bancorp on 11 of the 18 factors compared between the two stocks.
About Magyar Bancorp
Magyar Bancorp, Inc. operates as the holding company for Magyar Bank that provides various consumer and commercial banking services to individuals, businesses, and nonprofit organizations in New Jersey, the United States. It accepts various deposit accounts, including demand, savings, NOW, money market, and retirement accounts, as well as certificates of deposit. The company also provides residential mortgage loans, multi-family and commercial real estate mortgage loans, home equity loans and lines of credit, commercial business loans, and construction loans, as well as small business administration loans. In addition, it offers non-deposit investment products and financial planning services, including insurance products, fixed and variable annuities, and retirement planning for individual and commercial customers; and buys, sells, and holds investment securities. The company has branch offices located in New Brunswick, North Brunswick, South Brunswick, Branchburg, Bridgewater, and Edison, New Jersey. Magyar Bancorp, Inc. was founded in 1922 and is headquartered in New Brunswick, New Jersey.
About John Marshall Bancorp
John Marshall Bancorp, Inc. is the bank holding company for John Marshall Bank. The Bank is headquartered in Reston, Virginia with eight full-service branches located in Alexandria, Arlington, Loudoun, Prince William, Reston, and Tysons, Virginia, as well as Rockville, Maryland, and Washington, D.C. The Bank is dedicated to providing exceptional value, personalized service and convenience to local businesses and professionals in the Washington, D.C. Metropolitan area. The Bank offers a comprehensive line of sophisticated banking products and services that rival those of the largest banks along with experienced staff to help achieve customers’ financial goals. Dedicated relationship managers serve as direct points-of-contact, providing subject matter expertise in a variety of niche industries including charter and private schools, government contractors, health services, nonprofits and associations, professional services, property management companies and title companies
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