Eastern Bankshares (NASDAQ:EBC – Get Free Report) and Mvb Financial (NASDAQ:MVBF – Get Free Report) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, institutional ownership, valuation, dividends and analyst recommendations.
Insider and Institutional Ownership
71.7% of Eastern Bankshares shares are held by institutional investors. Comparatively, 52.7% of Mvb Financial shares are held by institutional investors. 1.1% of Eastern Bankshares shares are held by company insiders. Comparatively, 11.7% of Mvb Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Eastern Bankshares and Mvb Financial’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% |
| Mvb Financial | 7.84% | 5.60% | 0.53% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Eastern Bankshares | 1 | 0 | 3 | 0 | 2.50 |
| Mvb Financial | 0 | 2 | 5 | 0 | 2.71 |
Eastern Bankshares presently has a consensus price target of $21.50, suggesting a potential upside of 15.22%. Mvb Financial has a consensus price target of $29.25, suggesting a potential upside of 13.95%. Given Eastern Bankshares’ higher probable upside, equities analysts plainly believe Eastern Bankshares is more favorable than Mvb Financial.
Risk & Volatility
Eastern Bankshares has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500. Comparatively, Mvb Financial has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500.
Dividends
Eastern Bankshares pays an annual dividend of $0.52 per share and has a dividend yield of 2.8%. Mvb Financial pays an annual dividend of $0.68 per share and has a dividend yield of 2.6%. Eastern Bankshares pays out -167.7% of its earnings in the form of a dividend. Mvb Financial pays out 52.3% 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.
Earnings & Valuation
This table compares Eastern Bankshares and Mvb Financial”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Eastern Bankshares | $1.09 billion | 3.63 | $119.56 million | ($0.31) | -60.19 |
| Mvb Financial | $228.76 million | 1.43 | $20.09 million | $1.30 | 19.75 |
Eastern Bankshares has higher revenue and earnings than Mvb Financial. Eastern Bankshares is trading at a lower price-to-earnings ratio than Mvb Financial, indicating that it is currently the more affordable of the two stocks.
Summary
Eastern Bankshares beats Mvb Financial on 10 of the 17 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 Mvb Financial
MVB Financial Corp. operates as bank holding company for MVB Bank, Inc that provides financial services to individuals and corporate clients. The company operates through three segments: CoRe Banking, Mortgage Banking, and The Financial Holding Company. It offers various demand deposit accounts, savings accounts, money market accounts, and certificates of deposit; and commercial, consumer, and real estate mortgage loans, as well as lines of credit. The company also provides debit cards; cashier's checks; safe deposit rental facilities; and non-deposit investment services, as well as financial technology (Fintech) banking services. In addition, it offers fintech solutions for the gaming, payments, banking-as-a-service, and digital asset sectors; fraud prevention services for merchants, credit agencies, Fintech companies, and other vendors; and digital products and web and mobile applications for forward-thinking community banks, credit unions, digital banks, and Fintech companies. It operates full-service branches in West Virginia and Virginia. MVB Financial Corp. was founded in 1997 and is based in Fairmont, West Virginia.
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