Head to Head Contrast: Mid Penn Bancorp (NASDAQ:MPB) versus Middlefield Banc (NASDAQ:MBCN)

Mid Penn Bancorp (NASDAQ:MPB) and Middlefield Banc (NASDAQ:MBCN) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, risk, profitability, valuation, dividends, institutional ownership and analyst recommendations.

Valuation & Earnings

This table compares Mid Penn Bancorp and Middlefield Banc”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mid Penn Bancorp	$350.61 million	2.09	$56.25 million	$2.55	12.46
Middlefield Banc	$77.79 million	3.50	$19.42 million	$2.39	14.09

Mid Penn Bancorp has higher revenue and earnings than Middlefield Banc. Mid Penn Bancorp is trading at a lower price-to-earnings ratio than Middlefield Banc, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mid Penn Bancorp	16.04%	8.84%	1.09%
Middlefield Banc	16.65%	8.91%	1.01%

Dividends

Mid Penn Bancorp pays an annual dividend of $0.88 per share and has a dividend yield of 2.8%. Middlefield Banc pays an annual dividend of $0.84 per share and has a dividend yield of 2.5%. Mid Penn Bancorp pays out 34.5% of its earnings in the form of a dividend. Middlefield Banc pays out 35.1% 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. Middlefield Banc has raised its dividend for 1 consecutive years. Mid Penn Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider and Institutional Ownership

43.1% of Mid Penn Bancorp shares are owned by institutional investors. Comparatively, 31.7% of Middlefield Banc shares are owned by institutional investors. 8.1% of Mid Penn Bancorp shares are owned by company insiders. Comparatively, 4.1% of Middlefield Banc shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Mid Penn Bancorp and Middlefield Banc, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mid Penn Bancorp	0	0	2	0	3.00
Middlefield Banc	0	2	1	0	2.33

Mid Penn Bancorp presently has a consensus price target of $37.00, indicating a potential upside of 16.46%. Middlefield Banc has a consensus price target of $35.00, indicating a potential upside of 3.95%. Given Mid Penn Bancorp’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Mid Penn Bancorp is more favorable than Middlefield Banc.

Volatility & Risk

Mid Penn Bancorp has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500. Comparatively, Middlefield Banc has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500.

Summary

Mid Penn Bancorp beats Middlefield Banc on 12 of the 17 factors compared between the two stocks.

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.

About Middlefield Banc

Middlefield Banc Corp. operates as the bank holding company for The Middlefield Banking Company that provides various commercial banking services to small and medium-sized businesses, professionals, small business owners, and retail customers in northeastern and central Ohio. It offers checking, savings, negotiable order of withdrawal accounts, money market accounts, time certificates of deposit, commercial loans, real estate loans, various consumer loans, safe deposit facilities, and travelers' checks. The company also provides operational and working capital, term business, residential construction, professional, and residential and mortgage loans, as well as consumer installment loans for home improvements, automobiles, boats, and other personal expenditures; loans to finance capital purchases; selected guaranteed or subsidized loan programs for small businesses; and agricultural loans. In addition, the company resolves and disposes troubled assets in Ohio. Further, it offers official checks, money orders, and ATM services, as well as IRA accounts; online banking and bill payment services to individuals; and online cash management services to business customers. Middlefield Banc Corp. was founded in 1901 and is headquartered in Middlefield, Ohio.