MBT Financial (MBTF) & SmartFinancial (SMBK) Critical Contrast

MBT Financial (NASDAQ:MBTF) and SmartFinancial (NASDAQ:SMBK) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, institutional ownership, analyst recommendations, earnings and profitability.

Earnings and Valuation

This table compares MBT Financial and SmartFinancial’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MBT Financial $57.68 million 4.45 $10.60 million N/A N/A
SmartFinancial $57.00 million 5.20 $5.01 million $1.11 19.17

MBT Financial has higher revenue and earnings than SmartFinancial.

Profitability

This table compares MBT Financial and SmartFinancial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MBT Financial 22.48% 15.64% 1.44%
SmartFinancial 13.11% 7.62% 0.92%

Risk and Volatility

MBT Financial has a beta of -0.32, indicating that its stock price is 132% less volatile than the S&P 500. Comparatively, SmartFinancial has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for MBT Financial and SmartFinancial, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MBT Financial 0 1 2 0 2.67
SmartFinancial 0 2 2 0 2.50

MBT Financial presently has a consensus target price of $12.00, indicating a potential upside of 7.43%. SmartFinancial has a consensus target price of $25.50, indicating a potential upside of 19.83%. Given SmartFinancial’s higher probable upside, analysts clearly believe SmartFinancial is more favorable than MBT Financial.

Insider and Institutional Ownership

49.8% of MBT Financial shares are owned by institutional investors. Comparatively, 33.2% of SmartFinancial shares are owned by institutional investors. 22.9% of MBT Financial shares are owned by insiders. Comparatively, 12.0% of SmartFinancial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

MBT Financial pays an annual dividend of $0.40 per share and has a dividend yield of 3.6%. SmartFinancial does not pay a dividend.

Summary

MBT Financial beats SmartFinancial on 9 of the 13 factors compared between the two stocks.

About MBT Financial

MBT Financial Corp. operates as the bank holding company for the Monroe Bank & Trust that provides retail and commercial banking, and trust services to small and middle-market businesses and middle-income individuals. It offers checking and savings accounts, time deposits, and IRAs; and commercial loans, personal loans, real estate mortgage loans, and installment loans. The company also provides safe deposit facilities, ATM and night depository facilities, treasury management services, telephone and Internet banking, personal trust, employee benefit, and investment management services. It operates through a network of 20 full service branches in Monroe and Wayne counties, Michigan; and provides wealth management services. The company was founded in 1858 and is headquartered in Monroe, Michigan.

About SmartFinancial

SmartFinancial, Inc. operates as the bank holding company for the SmartBank that provides various financial services to individuals and corporate customers in the United States. The company offers various deposit products, including interest bearing and non-interest bearing checking accounts, savings accounts, money market accounts, individual retirement accounts, and certificates of deposit. It also provides commercial real estate loans, consumer real estate loans, construction and land development loans, commercial and industrial loans, including commercial, financial, and agricultural loans, and consumer and other loans, such as direct consumer installment loans, overdrafts and other revolving credit loans, and educational loans. In addition, the company offers Internet and mobile banking services. As of December 31, 2017, it operated through 22 full-service branches located in Tennessee, Alabama, and Florida; and 1 loan production office, 2 mortgage loan production offices, and 2 service centers. SmartFinancial, Inc. is headquartered in Knoxville, Tennessee.

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