Head to Head Contrast: MidWestOne Financial Group (NASDAQ:MOFG) vs. LINKBANCORP (NASDAQ:LNKB)

MidWestOne Financial Group (NASDAQ:MOFG) and LINKBANCORP (NASDAQ:LNKB) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, dividends, risk, institutional ownership, valuation, analyst recommendations and earnings.

Institutional & Insider Ownership

65.4% of MidWestOne Financial Group shares are owned by institutional investors. Comparatively, 37.5% of LINKBANCORP shares are owned by institutional investors. 2.8% of MidWestOne Financial Group shares are owned by insiders. Comparatively, 35.8% of LINKBANCORP shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

MidWestOne Financial Group pays an annual dividend of $0.97 per share and has a dividend yield of 3.4%. LINKBANCORP pays an annual dividend of $0.30 per share and has a dividend yield of 4.4%. MidWestOne Financial Group pays out 67.4% of its earnings in the form of a dividend. LINKBANCORP pays out -115.4% 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. MidWestOne Financial Group has raised its dividend for 14 consecutive years. LINKBANCORP is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares MidWestOne Financial Group and LINKBANCORP’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MidWestOne Financial Group	9.79%	5.33%	0.42%
LINKBANCORP	-0.34%	7.06%	0.71%

Valuation and Earnings

This table compares MidWestOne Financial Group and LINKBANCORP’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MidWestOne Financial Group	$183.24 million	2.48	$20.86 million	$1.44	20.01
LINKBANCORP	$77.68 million	3.26	-$11.97 million	($0.26)	-26.08

MidWestOne Financial Group has higher revenue and earnings than LINKBANCORP. LINKBANCORP is trading at a lower price-to-earnings ratio than MidWestOne Financial Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for MidWestOne Financial Group and LINKBANCORP, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MidWestOne Financial Group	0	4	0	0	2.00
LINKBANCORP	0	1	0	0	2.00

MidWestOne Financial Group presently has a consensus target price of $26.38, indicating a potential downside of 8.45%. LINKBANCORP has a consensus target price of $7.50, indicating a potential upside of 10.62%. Given LINKBANCORP’s higher probable upside, analysts clearly believe LINKBANCORP is more favorable than MidWestOne Financial Group.

Volatility and Risk

MidWestOne Financial Group has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500. Comparatively, LINKBANCORP has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500.

Summary

MidWestOne Financial Group beats LINKBANCORP on 8 of the 15 factors compared between the two stocks.

About MidWestOne Financial Group

MidWestOne Financial Group, Inc. operates as the bank holding company for MidWestOne Bank that provides commercial and retail banking products and services to individuals, businesses, governmental units, and institutional customers. It offers range of deposit products, including noninterest bearing and interest bearing demand deposits, savings, money market, and time deposits accounts. The company also provides commercial, real estate, agricultural, credit card, and consumer loans; and financing arrangements, such as brokered deposits, term debt, subordinated debt, and equity. In addition, it offers trust and investment services comprising administering estates, trusts, and conservatorships; property and farm management, investment advisory, retail securities brokerage, financial planning, and custodial services; and licensed brokers services. Further, the company provides online and mobile banking, debit cards, automated teller machines, and safe deposit boxes. MidWestOne Financial Group, Inc. was founded in 1934 and is headquartered in Iowa City, Iowa.

About LINKBANCORP

LINKBANCORP, Inc. operates as a bank holding company for The Gratz Bank, that provides various banking products and services to individuals, families, nonprofit, and business customers in Pennsylvania. Its deposit products include demand, saving, and money market accounts, as well as certificates of deposits. The company also offers commercial real estate, commercial business, commercial real estate construction, land development, residential real estate, home equity, consumer, agricultural, and municipal loans. It also provides online banking, mobile banking, direct and remote deposit, and cash management services. The company was incorporated in 2018 and is headquartered in Camp Hill, Pennsylvania.