Eastern Bankshares (NASDAQ:EBC) vs. Mid Penn Bancorp (NASDAQ:MPB) Head to Head Contrast

Eastern Bankshares (NASDAQ:EBC) and Mid Penn Bancorp (NASDAQ:MPB) are both 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.

Earnings and Valuation

This table compares Eastern Bankshares and Mid Penn Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eastern Bankshares	$1.09 billion	3.09	$119.56 million	($0.31)	-51.19
Mid Penn Bancorp	$309.08 million	2.11	$49.44 million	$2.39	11.87

Eastern Bankshares has higher revenue and earnings than Mid Penn Bancorp. Eastern Bankshares is trading at a lower price-to-earnings ratio than Mid Penn Bancorp, 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 Eastern Bankshares and Mid Penn Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eastern Bankshares	0	0	1	0	3.00
Mid Penn Bancorp	0	0	2	0	3.00

Eastern Bankshares presently has a consensus target price of $20.00, indicating a potential upside of 26.02%. Mid Penn Bancorp has a consensus target price of $34.50, indicating a potential upside of 21.61%. Given Eastern Bankshares’ higher probable upside, research analysts clearly believe Eastern Bankshares is more favorable than Mid Penn Bancorp.

Institutional & Insider Ownership

71.7% of Eastern Bankshares shares are owned by institutional investors. Comparatively, 43.1% of Mid Penn Bancorp shares are owned by institutional investors. 1.1% of Eastern Bankshares shares are owned by insiders. Comparatively, 8.1% of Mid Penn Bancorp 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.

Profitability

This table compares Eastern Bankshares and Mid Penn Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eastern Bankshares	-6.49%	7.35%	1.05%
Mid Penn Bancorp	13.69%	8.13%	0.95%

Volatility and Risk

Eastern Bankshares has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, Mid Penn Bancorp has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.

Dividends

Eastern Bankshares pays an annual dividend of $0.52 per share and has a dividend yield of 3.3%. Mid Penn Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 2.8%. Eastern Bankshares pays out -167.7% of its earnings in the form of a dividend. Mid Penn Bancorp pays out 33.5% 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. Eastern Bankshares has raised its dividend for 5 consecutive years. Eastern Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Eastern Bankshares beats Mid Penn Bancorp on 10 of the 16 factors compared between the two stocks.

About Eastern Bankshares

Eastern Bankshares, Inc. operates as the bank holding company for Eastern Bank that provides banking products and services primarily to retail, commercial, and small business customers. The company provides deposit accounts, interest checking accounts, money market accounts, savings accounts, and time certificates of deposit accounts. It also offers commercial and industrial, commercial real estate and construction, small business, residential real estate, and home equity loans; lines of credit; and other consumer loans comprising unsecured personal lines of credit, overdraft protection, automobile loans, home improvement loans, airplane loans, and other personal loans. In addition, the company provides trust, financial planning and portfolio management, automated lock box collection, cash management, and account reconciliation services; personal, business, and employee benefits insurance products. Eastern Bankshares, Inc. was founded in 1818 and is headquartered in Boston, Massachusetts.

About Mid Penn Bancorp

Mid Penn Bancorp, Inc. operates as the bank holding company for Mid Penn Bank that provides commercial banking services to individuals, partnerships, non-profit organizations, and corporations. The company offers various time and demand deposit products, including checking accounts, savings accounts, clubs, money market deposit accounts, certificates of deposit, and individual retirement accounts. It also provides a range of loan products comprising mortgage and home equity loans, secured and unsecured commercial and consumer loans, lines of credit, construction financing, farm loans, community development loans, loans to non-profit entities, and local government loans. In addition, the company offers trust, retail investment, wealth management, and insurance services; and provides online banking, telephone banking, cash management, and automated teller services, as well as safe deposit boxes. The company was founded in 1868 and is headquartered in Harrisburg, Pennsylvania.