MidWestOne Financial Group (NASDAQ:MOFG – Get Free Report) and Cullen/Frost Bankers (NYSE:CFR – Get Free Report) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.
Dividends
MidWestOne Financial Group pays an annual dividend of $0.97 per share and has a dividend yield of 2.0%. Cullen/Frost Bankers pays an annual dividend of $4.12 per share and has a dividend yield of 2.6%. MidWestOne Financial Group pays out 34.5% of its earnings in the form of a dividend. Cullen/Frost Bankers pays out 38.3% 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. Cullen/Frost Bankers has raised its dividend for 32 consecutive years. Cullen/Frost Bankers is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings & Valuation
This table compares MidWestOne Financial Group and Cullen/Frost Bankers”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| MidWestOne Financial Group | $238.84 million | 4.26 | -$60.29 million | $2.81 | 17.55 |
| Cullen/Frost Bankers | $2.34 billion | 4.21 | $648.56 million | $10.75 | 14.72 |
Cullen/Frost Bankers has higher revenue and earnings than MidWestOne Financial Group. Cullen/Frost Bankers is trading at a lower price-to-earnings ratio than MidWestOne Financial Group, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
65.4% of MidWestOne Financial Group shares are owned by institutional investors. Comparatively, 86.9% of Cullen/Frost Bankers shares are owned by institutional investors. 2.5% of MidWestOne Financial Group shares are owned by insiders. Comparatively, 1.1% of Cullen/Frost Bankers shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Ratings
This is a breakdown of current recommendations for MidWestOne Financial Group and Cullen/Frost Bankers, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MidWestOne Financial Group | 0 | 1 | 0 | 0 | 2.00 |
| Cullen/Frost Bankers | 1 | 8 | 4 | 0 | 2.23 |
Cullen/Frost Bankers has a consensus target price of $171.55, suggesting a potential upside of 8.41%. Given Cullen/Frost Bankers’ stronger consensus rating and higher possible upside, analysts plainly believe Cullen/Frost Bankers is more favorable than MidWestOne Financial Group.
Profitability
This table compares MidWestOne Financial Group and Cullen/Frost Bankers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| MidWestOne Financial Group | 16.66% | 10.22% | 0.96% |
| Cullen/Frost Bankers | 23.37% | 16.27% | 1.30% |
Volatility & Risk
MidWestOne Financial Group has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500. Comparatively, Cullen/Frost Bankers has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500.
Summary
Cullen/Frost Bankers beats MidWestOne Financial Group on 12 of the 17 factors compared between the two stocks.
About MidWestOne Financial Group
MidWestOne Financial Group, Inc. is a bank holding company headquartered in Iowa City, Iowa. Through its subsidiary, MidWestOne Bank, the company provides community banking services to individuals, businesses and organizations. Its offerings include deposit accounts, consumer and commercial loans, mortgage lending, cash management, and wealth management and trust services. The bank serves customers through offices in Iowa, Minnesota, Wisconsin and Colorado.
About Cullen/Frost Bankers
Cullen/Frost Bankers, Inc. is a financial holding company headquartered in San Antonio, Texas. Its principal subsidiary, Frost Bank, provides banking and other financial services to individuals and businesses. Frost Bank’s services include consumer and commercial banking, lending, treasury management, and wealth management, including trust and investment services. The company primarily serves customers across Texas through its branches and digital banking channels. The company traces its roots to 1868, when Thomas Claiborne Frost established a mercantile business in San Antonio; banking became part of the business later in the 19th century.
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