MutualFirst Financial (NASDAQ: ISBC) and Investors Bancorp (NASDAQ:ISBC) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, earnings, analyst recommendations and valuation.
This table compares MutualFirst Financial and Investors Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
MutualFirst Financial has a beta of 0.13, suggesting that its stock price is 87% less volatile than the S&P 500. Comparatively, Investors Bancorp has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500.
This is a breakdown of current recommendations and price targets for MutualFirst Financial and Investors Bancorp, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
MutualFirst Financial presently has a consensus price target of $39.00, suggesting a potential upside of 2.63%. Investors Bancorp has a consensus price target of $14.92, suggesting a potential upside of 17.92%. Given Investors Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe Investors Bancorp is more favorable than MutualFirst Financial.
MutualFirst Financial pays an annual dividend of $0.72 per share and has a dividend yield of 1.9%. Investors Bancorp pays an annual dividend of $0.36 per share and has a dividend yield of 2.8%. MutualFirst Financial pays out 37.7% of its earnings in the form of a dividend. Investors Bancorp pays out 58.1% 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. MutualFirst Financial has increased its dividend for 4 consecutive years and Investors Bancorp has increased its dividend for 3 consecutive years.
Institutional & Insider Ownership
46.7% of MutualFirst Financial shares are owned by institutional investors. Comparatively, 63.5% of Investors Bancorp shares are owned by institutional investors. 11.3% of MutualFirst Financial shares are owned by insiders. Comparatively, 3.5% of Investors Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares MutualFirst Financial and Investors Bancorp’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|MutualFirst Financial||$76.94 million||4.24||$12.31 million||$1.91||19.90|
|Investors Bancorp||$917.32 million||4.95||$126.74 million||$0.62||20.40|
Investors Bancorp has higher revenue and earnings than MutualFirst Financial. MutualFirst Financial is trading at a lower price-to-earnings ratio than Investors Bancorp, indicating that it is currently the more affordable of the two stocks.
Investors Bancorp beats MutualFirst Financial on 11 of the 17 factors compared between the two stocks.
About MutualFirst Financial
MutualFirst Financial, Inc. operates as the bank holding company for MutualBank that provides various financial services in the United States. It accepts savings deposit, NOW, and demand accounts, as well as certificates of deposit. The company offers one-to four-family residential property, commercial real estate, construction and development, and commercial business loans; consumer loans, such as auto loans, boat and recreational vehicle loans, loans secured by savings deposits, and credit card and unsecured consumer loans; and adjustable rate loans. In addition, it operates as an insurance agent; and sells life and other insurance products. Further, the company provides trust, investment, broker advisory, retirement plan, and private banking products and services. It has 27 full service retail financial centers in Allen, Delaware, Elkhart, Grant, Kosciusko, Randolph, St. Joseph, and Wabash counties in Indiana; and wealth management offices in Fishers and Crawfordsville, Indiana; and 1 loan origination office in New Buffalo, Michigan. MutualFirst Financial, Inc. was founded in 1889 and is headquartered in Muncie, Indiana.
About Investors Bancorp
Investors Bancorp, Inc. operates as the holding company for Investors Bank that provides various banking products and services to individuals and businesses in the United States. Its deposit products include savings, checking, and money market accounts, as well as certificates of deposit. The company's loan portfolio comprises multi-family, commercial real estate, commercial and industrial, and construction loans; consumer and other loans primarily consisting of home equity loans, home equity lines of credit, and cash surrender value lending on life insurance contracts; and one-to four-family residential mortgage loans secured by one-to four-family residential real estate. As of December 31, 2017, it operated through a network of 156 offices in New Jersey and New York. The company was founded in 1926 and is headquartered in Short Hills, New Jersey.
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