Contrasting Mission Valley Bancorp (OTCMKTS:MVLY) and Signature Bank (NASDAQ:SBNY)

Mission Valley Bancorp (OTCMKTS:MVLY) and Signature Bank (NASDAQ:SBNY) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Mission Valley Bancorp and Signature Bank, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mission Valley Bancorp	0	0	0	0	N/A
Signature Bank	0	5	5	0	2.50

Signature Bank has a consensus price target of $163.46, indicating a potential upside of 326,823.08%. Given Signature Bank’s higher possible upside, analysts plainly believe Signature Bank is more favorable than Mission Valley Bancorp.

Profitability

This table compares Mission Valley Bancorp and Signature Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mission Valley Bancorp	N/A	N/A	N/A
Signature Bank	36.03%	16.76%	1.16%

Earnings and Valuation

This table compares Mission Valley Bancorp and Signature Bank’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mission Valley Bancorp	N/A	N/A	$4.80 million	$1.74	7.36
Signature Bank	$3.71 billion	0.00	$1.34 billion	$20.78	0.00

Signature Bank has higher revenue and earnings than Mission Valley Bancorp. Signature Bank is trading at a lower price-to-earnings ratio than Mission Valley Bancorp, indicating that it is currently the more affordable of the two stocks.

Dividends

Mission Valley Bancorp pays an annual dividend of $0.15 per share and has a dividend yield of 1.2%. Signature Bank pays an annual dividend of $1.26 per share and has a dividend yield of 2,520.0%. Mission Valley Bancorp pays out 8.6% of its earnings in the form of a dividend. Signature Bank pays out 6.1% 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. Signature Bank is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk and Volatility

Mission Valley Bancorp has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500. Comparatively, Signature Bank has a beta of 1.59, suggesting that its stock price is 59% more volatile than the S&P 500.

Insider & Institutional Ownership

5.7% of Mission Valley Bancorp shares are owned by institutional investors. Comparatively, 6.0% of Signature Bank shares are owned by institutional investors. 1.5% of Signature Bank shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Signature Bank beats Mission Valley Bancorp on 13 of the 14 factors compared between the two stocks.

About Mission Valley Bancorp

Mission Valley Bancorp operates as the bank holding company for Mission Valley Bank and Mission SBA Loan Servicing LLC that provides various banking products and services to individuals and corporate customers. The company's deposit products include non-interest-bearing and interest-bearing demand deposits, and time deposits; and money market, savings accounts, as well as certificates of deposit. It also offers personal loans; accounts receivable; advanced restaurant financing; commercial loan, real estate loan, small business administration, term loans; and overdraft facilities; as well as credit and debit cards. In addition, the company provides lending services, such as underwriting, processing, closing, servicing, and referral/replacement services. Mission Valley Bancorp was founded in 2001 and is headquartered in Sun Valley, California.

About Signature Bank

Signature Bank provides digital assets banking business and comprises of certain loan portfolios. The company was incorporated in 2000 and is based in New York, New York.