Mill City Ventures III (NASDAQ:MCVT – Get Free Report) and Burke & Herbert Financial Services (NASDAQ:BHRB – Get Free Report) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.
Profitability
This table compares Mill City Ventures III and Burke & Herbert Financial Services’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Mill City Ventures III | 45.43% | 7.01% | 6.87% |
| Burke & Herbert Financial Services | 20.93% | 15.39% | 1.44% |
Insider & Institutional Ownership
11.6% of Mill City Ventures III shares are owned by institutional investors. 26.5% of Mill City Ventures III shares are owned by insiders. Comparatively, 10.9% of Burke & Herbert Financial Services shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Mill City Ventures III | 0 | 0 | 0 | 0 | 0.00 |
| Burke & Herbert Financial Services | 0 | 0 | 3 | 0 | 3.00 |
Burke & Herbert Financial Services has a consensus price target of $71.67, indicating a potential upside of 14.61%. Given Burke & Herbert Financial Services’ stronger consensus rating and higher possible upside, analysts clearly believe Burke & Herbert Financial Services is more favorable than Mill City Ventures III.
Volatility and Risk
Mill City Ventures III has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500. Comparatively, Burke & Herbert Financial Services has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500.
Valuation and Earnings
This table compares Mill City Ventures III and Burke & Herbert Financial Services”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Mill City Ventures III | $3.30 million | 157.88 | $1.17 million | $0.24 | 26.44 |
| Burke & Herbert Financial Services | $402.33 million | 2.33 | $35.71 million | $6.89 | 9.08 |
Burke & Herbert Financial Services has higher revenue and earnings than Mill City Ventures III. Burke & Herbert Financial Services is trading at a lower price-to-earnings ratio than Mill City Ventures III, indicating that it is currently the more affordable of the two stocks.
Summary
Burke & Herbert Financial Services beats Mill City Ventures III on 8 of the 14 factors compared between the two stocks.
About Mill City Ventures III
Mill City Ventures III, Ltd. is a principal investment firm specializing investments in debt and equity securities of public and private companies to fund their operations whether its start-up, acquisition, or growth. It primarily focuses on investing in, lending to, and making managerial assistance available to privately held and publicly traded companies. The firm also advises its portfolio companies with regard to finance and operations. It was formerly known as Poker Magic, Inc. Mill City Ventures III, Ltd. was founded in January, 2006 and is based in Wayzata, Minnesota.
About Burke & Herbert Financial Services
Burke Herbert Financial Services Corp. is a bank holding company, which engages in the provision of banking products and financial services to small to medium-sized businesses, their owners and employees, professional corporations, non-profits, and individuals. It operates through the following loan portfolio segments: Commercial Real Estate, Owner-Occupied Commercial Real Estate, Acquisition, Construction, and Development, Commercial and Industrial, Single Family Residential (1-4 Units), and Consumer Non-Real Estate and Other. The Commercial Real Estate segment includes leasing of the real estate collateral or income generated from the sale of the collateral. The Owner-Occupied Commercial Real Estate segment focuses on the operations of the business that occupies the property and the value of the collateral. The Acquisition, Construction, and Development segment offers creditworthiness of the borrower, project completion within budget, sale after completion, and the value of the collateral. The Commercial and Industrial segment is involved in the operations of the business and the value of the collateral. The Single Family Residential (1-4 Units) segment provides loans for investment purpose carry risk associated with the continued creditworthiness of the borrower, the value of the collateral, and either the net operating income generated from the lease of the real estate collateral or income generated from the sale of the collateral. The Consumer Non-Real Estate and Other segment covers loans carry risk associated with the creditworthiness of the borrower and the value of the collateral. The company was founded on September 14, 2022 and is headquartered in Alexandria, VA.
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