Eagle Bancorp (NASDAQ:EGBN – Get Rating) and Middlefield Banc (NASDAQ:MBCN – Get Rating) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.
Insider & Institutional Ownership
73.0% of Eagle Bancorp shares are owned by institutional investors. Comparatively, 38.4% of Middlefield Banc shares are owned by institutional investors. 2.1% of Eagle Bancorp shares are owned by company insiders. Comparatively, 3.9% of Middlefield Banc shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Dividends
Eagle Bancorp pays an annual dividend of $1.80 per share and has a dividend yield of 9.6%. Middlefield Banc pays an annual dividend of $0.80 per share and has a dividend yield of 3.5%. Eagle Bancorp pays out 44.6% of its earnings in the form of a dividend. Middlefield Banc pays out 31.3% 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. Eagle Bancorp has raised its dividend for 2 consecutive years and Middlefield Banc has raised its dividend for 2 consecutive years.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Eagle Bancorp | 0 | 2 | 0 | 0 | 2.00 |
| Middlefield Banc | 0 | 1 | 0 | 0 | 2.00 |
Eagle Bancorp currently has a consensus target price of $33.50, indicating a potential upside of 78.76%. Given Eagle Bancorp’s higher probable upside, equities research analysts plainly believe Eagle Bancorp is more favorable than Middlefield Banc.
Earnings and Valuation
This table compares Eagle Bancorp and Middlefield Banc’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Eagle Bancorp | $347.34 million | 1.66 | $140.93 million | $4.04 | 4.64 |
| Middlefield Banc | $62.24 million | 2.94 | $15.67 million | $2.56 | 8.84 |
Eagle Bancorp has higher revenue and earnings than Middlefield Banc. Eagle Bancorp is trading at a lower price-to-earnings ratio than Middlefield Banc, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Eagle Bancorp has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500. Comparatively, Middlefield Banc has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500.
Profitability
This table compares Eagle Bancorp and Middlefield Banc’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Eagle Bancorp | 25.97% | 11.52% | 1.30% |
| Middlefield Banc | 23.92% | 11.45% | 1.22% |
Summary
Eagle Bancorp beats Middlefield Banc on 10 of the 14 factors compared between the two stocks.
About Eagle Bancorp
Eagle Bancorp, Inc. is a bank holding company, which engages in the provision of commercial banking services. The firm offers checking accounts, business savings accounts, online and mobile banking, insurance, and investment advisory services, borrowing, and treasury management. Its customers include sole proprietors, small and medium-sized businesses, partnerships, corporations, non-profit organizations and associations, and investors living and working in and near the bank’s primary service area. The company was founded on October 28, 1997 and is headquartered in Bethesda, MD.
About Middlefield Banc
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.
Receive News & Ratings for Eagle Bancorp Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Eagle Bancorp and related companies with MarketBeat.com's FREE daily email newsletter.
