Comparing FNB Bancorp (FNBG) & Merchants Bancorp (MBIN)

FNB Bancorp (NASDAQ:FNBG) and Merchants Bancorp (NASDAQ:MBIN) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, profitability, risk, dividends, earnings and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and price targets for FNB Bancorp and Merchants Bancorp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FNB Bancorp 0 0 0 0 N/A
Merchants Bancorp 0 1 3 0 2.75

Merchants Bancorp has a consensus target price of $21.25, suggesting a potential downside of 7.59%. Given Merchants Bancorp’s higher possible upside, analysts plainly believe Merchants Bancorp is more favorable than FNB Bancorp.

Dividends

FNB Bancorp pays an annual dividend of $0.52 per share and has a dividend yield of 1.4%. Merchants Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.0%. Merchants Bancorp pays out 12.2% of its earnings in the form of a dividend.

Insider and Institutional Ownership

23.2% of FNB Bancorp shares are owned by institutional investors. Comparatively, 22.5% of Merchants Bancorp shares are owned by institutional investors. 17.5% of FNB Bancorp shares are owned by insiders. Comparatively, 43.4% of Merchants Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares FNB Bancorp and Merchants Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FNB Bancorp N/A N/A N/A
Merchants Bancorp 38.21% 17.99% 1.68%

Valuation & Earnings

This table compares FNB Bancorp and Merchants Bancorp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FNB Bancorp N/A N/A N/A N/A N/A
Merchants Bancorp $142.07 million 4.64 $54.68 million $1.97 11.67

Merchants Bancorp has higher revenue and earnings than FNB Bancorp.

Summary

Merchants Bancorp beats FNB Bancorp on 7 of the 10 factors compared between the two stocks.

FNB Bancorp Company Profile

FNB Bancorp operates as the bank holding company for First National Bank of Northern California that provides business and commercial banking services for individuals and small to mid-sized businesses primarily in the San Mateo, San Francisco, and Santa Clara counties. The company offers personal and business checking and savings accounts, including individual interest-bearing negotiable orders of withdrawal, money market accounts and/or accounts combining checking and savings accounts with automatic transfer capabilities, IRA accounts, time certificates of deposit, direct deposit services, and computer cash management with access through the Internet. It also provides commercial, construction, automobile, home improvement, residential and commercial real estate, small business administration, and consumer loans, as well as lines of credit; standby letters of credit; and accounts receivable, inventory, equipment, and leasehold improvement financing services. In addition, the company offers automated teller machine and other customary commercial banking services; and business financial products and specialized services, such as courier, appointment banking, and business Internet banking. Further, it sells cashier's checks. The company operates through 12 full service banking offices in the cities of Daly City, South San Francisco, Millbrae, Pacifica, Half Moon Bay, San Mateo, Redwood City, Pescadero, San Francisco, and Sunnyvale. FNB Bancorp was founded in 1963 and is based in South San Francisco, California.

Merchants Bancorp Company Profile

Merchants Bancorp operates as a diversified bank holding company in the United States. It operates in three segments: Multi-family Mortgage Banking, Mortgage Warehousing, and Banking. The Multi-family Mortgage Banking segment originates and services government sponsored mortgages for multi-family and healthcare facilities. The Mortgage Warehousing segment funds agency eligible residential loans, including origination, purchase, and sale in the secondary market, as well as commercial loans to non-depository financial institutions. The Banking segment offers a range of financial products and services to consumers and businesses, such as various types of deposit products comprising checking, savings, and time deposit accounts; commercial, commercial real estate, mortgage, and other consumer loan products; and letters of credit, as well as engages in the retail banking, agricultural lending, single family mortgage lending, small business administration lending, and correspondent lending and servicing businesses. The company operates seven branches comprising three branches in the Indianapolis, Indiana metropolitan area; two branches in Lynn, Indiana; and two branches in Joy and New Boston, Illinois. Merchants Bancorp was founded in 1990 and is headquartered in Carmel, Indiana.

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