Head-To-Head Comparison: Flagstar Bank, National Association (NYSE:FLG) and Midland States Bancorp (NASDAQ:MSBI)

Flagstar Bank, National Association (NYSE:FLG) and Midland States Bancorp (NASDAQ:MSBI) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, risk, dividends and institutional ownership.

Insider and Institutional Ownership

67.9% of Flagstar Bank, National Association shares are owned by institutional investors. Comparatively, 60.9% of Midland States Bancorp shares are owned by institutional investors. 6.4% of Flagstar Bank, National Association shares are owned by company insiders. Comparatively, 8.6% of Midland States Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Flagstar Bank, National Association and Midland States Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flagstar Bank, National Association	-3.68%	-1.60%	-0.13%
Midland States Bancorp	6.62%	10.47%	0.70%

Volatility and Risk

Flagstar Bank, National Association has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500. Comparatively, Midland States Bancorp has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500.

Dividends

Flagstar Bank, National Association pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. Midland States Bancorp pays an annual dividend of $1.28 per share and has a dividend yield of 5.4%. Flagstar Bank, National Association pays out -7.8% of its earnings in the form of a dividend. Midland States Bancorp pays out 126.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Midland States Bancorp has raised its dividend for 1 consecutive years. Midland States Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Flagstar Bank, National Association and Midland States Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flagstar Bank, National Association	1	6	7	1	2.53
Midland States Bancorp	1	5	0	0	1.83

Flagstar Bank, National Association presently has a consensus price target of $15.18, suggesting a potential upside of 3.79%. Midland States Bancorp has a consensus price target of $23.00, suggesting a potential downside of 3.32%. Given Flagstar Bank, National Association’s stronger consensus rating and higher possible upside, research analysts clearly believe Flagstar Bank, National Association is more favorable than Midland States Bancorp.

Earnings & Valuation

This table compares Flagstar Bank, National Association and Midland States Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flagstar Bank, National Association	$4.81 billion	1.27	-$177.00 million	($0.51)	-28.67
Midland States Bancorp	$476.05 million	1.07	-$124.28 million	$1.01	23.55

Midland States Bancorp has lower revenue, but higher earnings than Flagstar Bank, National Association. Flagstar Bank, National Association is trading at a lower price-to-earnings ratio than Midland States Bancorp, indicating that it is currently the more affordable of the two stocks.

About Flagstar Bank, National Association

Flagstar Financial, Inc. operates as the bank holding company for Flagstar Bank, N.A. that provides banking products and services in the United States. The company’s deposit products include interest-bearing checking and money market, savings, non-interest-bearing, and retirement accounts, as well as certificates of deposit. Its loan products comprise multi-family loans; commercial real estate loans; acquisition, development, and construction loans; commercial and industrial loans; one-to-four family loans; specialty finance loans and leases; warehouse loans; and other loans, such as home equity lines of credit, boat and recreational vehicle indirect lending, point of sale consumer loans, and other consumer loans, including overdraft loans. The company offers cash management products; non-deposit investment and insurance products; and online banking, mobile banking, and bank-by-phone services. It primarily serves individuals, small and mid-size businesses, and professional associations. The company was formerly known as New York Community Bancorp, Inc. and changed its name to Flagstar Financial, Inc. in October 2024. Flagstar Financial, Inc. was founded in 1859 and is headquartered in Hicksville, New York.

About Midland States Bancorp

Midland States Bancorp, Inc. operates as a financial holding company for Midland States Bank that provides various banking products and services to individuals, businesses, municipalities, and other entities. It operates through Banking, Wealth Management, and Other segments. The company provides a range of financial products and services to consumers and businesses, including commercial loans to finance agricultural equipment and production; and commercial real estate loans for owner occupied offices, warehouses and production facilities, office buildings, hotels, mixed-use residential and commercial facilities, retail centers, multifamily properties, and assisted living facilities. In addition, it offers construction and land development loans, such as real estate investment properties and residential developments, and lesser extent loans; and residential real estate loans, which includes first and second mortgage loans, and home equity lines of credit consisting of loans secured by first or second mortgages on primarily owner occupied primary residences. The company also provides consumer installment loans for the purchase of cars, boats and other recreational vehicles, as well as for the purchase of major appliances and other home improvement projects; and commercial equipment leasing programs for manufacturing, construction, transportation, and healthcare industries. Further, it offers merchant services; deposit products, including checking, time, savings, money market, and certificates of deposit, as well as sweep accounts; letters of credit; and trust and wealth management services, such as financial and estate planning, trustee and custodial, investment management, tax, insurance, and business planning, corporate retirement plan consulting and administration, and retail brokerage services. The company was founded in 1881 and is headquartered in Effingham, Illinois.