Partners Bancorp (NASDAQ:PTRS – Get Rating) and Mercantile Bank (NASDAQ:MBWM – Get Rating) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.
Partners Bancorp pays an annual dividend of $0.16 per share and has a dividend yield of 2.9%. Mercantile Bank pays an annual dividend of $1.32 per share and has a dividend yield of 4.9%. Partners Bancorp pays out 19.3% of its earnings in the form of a dividend. Mercantile Bank pays out 29.8% 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. Partners Bancorp has raised its dividend for 1 consecutive years and Mercantile Bank has raised its dividend for 9 consecutive years. Mercantile Bank is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a breakdown of current ratings and recommmendations for Partners Bancorp and Mercantile Bank, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Institutional and Insider Ownership
12.1% of Partners Bancorp shares are owned by institutional investors. Comparatively, 55.5% of Mercantile Bank shares are owned by institutional investors. 45.0% of Partners Bancorp shares are owned by company insiders. Comparatively, 3.0% of Mercantile Bank shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Partners Bancorp and Mercantile Bank’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Partners Bancorp has a beta of 0.38, meaning that its share price is 62% less volatile than the S&P 500. Comparatively, Mercantile Bank has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500.
Earnings and Valuation
This table compares Partners Bancorp and Mercantile Bank’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Partners Bancorp||$67.86 million||1.46||$13.61 million||$0.83||6.62|
|Mercantile Bank||$213.92 million||2.00||$61.06 million||$4.43||6.04|
Mercantile Bank has higher revenue and earnings than Partners Bancorp. Mercantile Bank is trading at a lower price-to-earnings ratio than Partners Bancorp, indicating that it is currently the more affordable of the two stocks.
Mercantile Bank beats Partners Bancorp on 13 of the 16 factors compared between the two stocks.
About Partners Bancorp
Partners Bancorp is a bank holding company, which engages in the provision of financial services to individuals and corporate customers. It offers commercial banking operations in Maryland and Virginia. The company was founded on January 6, 1988 and is headquartered in Salisbury, MD.
About Mercantile Bank
Mercantile Bank Corp. operates as a bank holding company for Mercantile Bank of Michigan. It offers checking and savings accounts, credit and debit cards, mobile and Internet banking, business loans, mobile wallet, health savings account, and treasury management services. The company was founded on July 15, 1997 and is headquartered in Grand Rapids, MI.
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