Middlefield Banc (NASDAQ:MBCN) and Amalgamated Financial (NASDAQ:AMAL) Financial Review

Middlefield Banc (NASDAQ:MBCN – Get Rating) and Amalgamated Financial (NASDAQ:AMAL – Get Rating) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, risk and institutional ownership.

Volatility & Risk

Middlefield Banc has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500. Comparatively, Amalgamated Financial has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500.

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Profitability

This table compares Middlefield Banc and Amalgamated Financial’s net margins, return on equity and return on assets.

Dividends

Middlefield Banc pays an annual dividend of $0.80 per share and has a dividend yield of 3.1%. Amalgamated Financial pays an annual dividend of $0.40 per share and has a dividend yield of 2.4%. Middlefield Banc pays out 30.7% of its earnings in the form of a dividend. Amalgamated Financial pays out 15.3% 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. Middlefield Banc has increased its dividend for 2 consecutive years and Amalgamated Financial has increased its dividend for 1 consecutive years. Middlefield Banc is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of current ratings and target prices for Middlefield Banc and Amalgamated Financial, as provided by MarketBeat.com.

Amalgamated Financial has a consensus price target of $24.00, suggesting a potential upside of 45.90%. Given Amalgamated Financial’s stronger consensus rating and higher possible upside, analysts plainly believe Amalgamated Financial is more favorable than Middlefield Banc.

Valuation and Earnings

This table compares Middlefield Banc and Amalgamated Financial’s gross revenue, earnings per share (EPS) and valuation.

Amalgamated Financial has higher revenue and earnings than Middlefield Banc. Amalgamated Financial is trading at a lower price-to-earnings ratio than Middlefield Banc, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

38.4% of Middlefield Banc shares are owned by institutional investors. Comparatively, 49.0% of Amalgamated Financial shares are owned by institutional investors. 5.2% of Middlefield Banc shares are owned by insiders. Comparatively, 2.1% of Amalgamated Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Amalgamated Financial beats Middlefield Banc on 11 of the 17 factors compared between the two stocks.

About Middlefield Banc

(Get Rating)

Middlefield Banc Corp. is a holding company, which engages in the provision of personal and commercial banking solutions. It offers checking, savings, negotiable order of withdrawal accounts, money market accounts, time certificates of deposit, commercial loans, real estate loans, a variety of consumer loans, safe deposit facilities, and travelers’ checks services. It also provides mortgage and investment services. The company was founded in 1988 and is headquartered in Middlefield, OH.

About Amalgamated Financial

(Get Rating)

Amalgamated Financial Corp. operates as a holding company for Amalgamated Bank. It offers commercial and retail banking, investment management, and trust custody segments. The company was founded in 1923 and is headquartered in New York, NY.

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