Hilltop (NYSE:HTH) and Middlefield Banc (NYSE:MBCN) Head to Head Analysis

Hilltop (NYSE:HTH) and Middlefield Banc (NASDAQ:MBCN) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, profitability, earnings, analyst recommendations and dividends.

Insider & Institutional Ownership

61.7% of Hilltop shares are owned by institutional investors. Comparatively, 28.7% of Middlefield Banc shares are owned by institutional investors. 21.2% of Hilltop shares are owned by insiders. Comparatively, 6.9% of Middlefield Banc 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.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hilltop $1.60 billion 1.46 $121.44 million $1.28 19.70
Middlefield Banc $54.08 million 2.80 $12.43 million $3.83 6.15

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

Dividends

Hilltop pays an annual dividend of $0.32 per share and has a dividend yield of 1.3%. Middlefield Banc pays an annual dividend of $1.12 per share and has a dividend yield of 4.8%. Hilltop pays out 25.0% of its earnings in the form of a dividend. Middlefield Banc pays out 29.2% 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.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Hilltop and Middlefield Banc, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hilltop 0 1 3 0 2.75
Middlefield Banc 0 0 1 0 3.00

Hilltop presently has a consensus price target of $23.88, suggesting a potential downside of 5.33%. Middlefield Banc has a consensus price target of $27.00, suggesting a potential upside of 14.65%. Given Middlefield Banc’s stronger consensus rating and higher probable upside, analysts plainly believe Middlefield Banc is more favorable than Hilltop.

Profitability

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

Net Margins Return on Equity Return on Assets
Hilltop 11.56% 10.14% 1.48%
Middlefield Banc 22.00% 9.80% 1.02%

Volatility & Risk

Hilltop has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500. Comparatively, Middlefield Banc has a beta of 0.25, indicating that its stock price is 75% less volatile than the S&P 500.

Summary

Hilltop beats Middlefield Banc on 10 of the 16 factors compared between the two stocks.

Hilltop Company Profile

Hilltop Holdings Inc. provides banking and financial products and services. The company operates in four segments: Banking, Broker-Dealer, Mortgage Origination, and Insurance. The Banking segment offers savings, checking, interest-bearing checking, and money market accounts; certificates of deposit; lines and letters of credit, home improvement and equity loans, loans for purchasing and carrying securities, equipment loans and leases, agricultural and commercial real estate loans, and other loans; and commercial and industrial loans, and term and construction finance. This segment also provides treasury management, check cards, safe deposit boxes, online banking, bill pay, overdraft, and automated teller machine services; and estate planning, management and administration, investment portfolio management, employee benefit accounts, and individual retirement accounts. The Broker-Dealer segment advises on public finance; trades in and underwrites U.S. government and government agency bonds, corporate and municipal bonds, and structured products, as well as mortgage-backed, asset-backed, and commercial mortgage-backed securities; trades in equities and options; and provides asset and liability management advisory, structured asset and liability, commodity hedging advisory, equity trading, retail brokerage, clearing, and securities lending services. The Mortgage Origination segment offers mortgage, jumbo, Federal Housing Administration, Veterans Affairs, and United States Department of Agriculture loans. The Insurance segment provides personal product line comprising homeowners, dwelling fire, manufactured home, and flood policies. The company operates in Texas, California, Florida, Ohio, Arizona, South Carolina, Washington, Missouri, North Carolina, Maryland, and other states in the United States. Hilltop Holdings Inc. was founded in 1998 and is headquartered in Dallas, Texas.

Middlefield Banc Company Profile

Middlefield Banc Corp. operates as the bank holding company for The Middlefield Banking Company that provides various commercial banking services to small and medium-sized businesses, professionals, small business owners, and retail customers in northeastern and central Ohio. It accepts checking, savings, negotiable order of withdrawal, and money market accounts, as well as time certificates of deposit and IRA accounts. The company offers operational and working capital, term business, residential construction, professional, and residential and mortgage loans, as well as consumer installment loans for home improvements, automobiles, boats, and other personal expenditures; loans to finance capital purchases; selected guaranteed or subsidized loan programs for small businesses; and agricultural loans. It also provides safe deposit facilities, travelers' and official checks, money orders, and ATM services; online banking and bill payment services to individuals; and online cash management services to business customers. In addition, the company resolves and disposes troubled assets in Ohio. As of January 17, 2019, it had 15 full-service banking centers and an LPL Financial brokerage office serving Beachwood, Chardon, Cortland, Dublin, Garrettsville, Mantua, Middlefield, Newbury, Orwell, Powell, Solon, Sunbury, Twinsburg, and Westerville, as well as a loan production office in Mentor, Ohio. The company was founded in 1901 and is headquartered in Middlefield, Ohio.

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