Middleburg Financial Corp. (NASDAQ: MBRG) and Eagle Bancorp (NASDAQ:EGBN) are both financials companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Volatility & Risk

Middleburg Financial Corp. has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500. Comparatively, Eagle Bancorp has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500.

Insider & Institutional Ownership

29.1% of Middleburg Financial Corp. shares are held by institutional investors. Comparatively, 68.1% of Eagle Bancorp shares are held by institutional investors. 5.1% of Middleburg Financial Corp. shares are held by company insiders. Comparatively, 8.4% of Eagle Bancorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Middleburg Financial Corp. and Eagle Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Middleburg Financial Corp. 8.07% 3.43% 0.34%
Eagle Bancorp 31.79% 12.17% 1.49%

Earnings & Valuation

This table compares Middleburg Financial Corp. and Eagle Bancorp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Middleburg Financial Corp. N/A N/A N/A $1.13 34.26
Eagle Bancorp $287.49 million 7.63 $104.91 million $3.07 20.92

Eagle Bancorp has higher revenue and earnings than Middleburg Financial Corp.. Eagle Bancorp is trading at a lower price-to-earnings ratio than Middleburg Financial Corp., indicating that it is currently the more affordable of the two stocks.

Dividends

Middleburg Financial Corp. pays an annual dividend of $0.52 per share and has a dividend yield of 1.3%. Eagle Bancorp does not pay a dividend. Middleburg Financial Corp. pays out 46.0% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of current recommendations and price targets for Middleburg Financial Corp. and Eagle Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Middleburg Financial Corp. 0 0 0 0 N/A
Eagle Bancorp 0 2 2 0 2.50

Eagle Bancorp has a consensus price target of $66.00, suggesting a potential upside of 2.76%. Given Eagle Bancorp’s higher probable upside, analysts clearly believe Eagle Bancorp is more favorable than Middleburg Financial Corp..

Summary

Eagle Bancorp beats Middleburg Financial Corp. on 11 of the 12 factors compared between the two stocks.

About Middleburg Financial Corp.

Middleburg Financial Corporation is a bank holding company. The Company conducts its primary operations through two subsidiaries, Middleburg Bank and Middleburg Investment Group, Inc. The Company has another subsidiary, MFC Capital Trust II. The Company’s segments are Commercial & Retail Banking, which includes loans, investment securities and deposit accounts; Wealth Management, including wealth management activities, and Mortgage Banking, which includes mortgage banking activities. The Company, through its subsidiaries, offers a range of banking, fiduciary and investment management services to both individuals and small businesses. The Company’s business activities include commercial and retail banking services through Middleburg Bank, wealth management services through Middleburg Investment Group, Inc., and mortgage banking services. Other banking services available to its clients include Internet banking, travelers’ checks, safe deposit rentals, notary public and wire services.

About Eagle Bancorp

Eagle Bancorp, Inc. is a bank holding company for EagleBank (the Bank). The Bank is the Company’s principal operating subsidiary. The Bank is a chartered commercial bank. As of December 31, 2016, the Bank operated 21 banking offices: seven in Montgomery County, Maryland; five located in the District of Columbia, and nine in Northern Virginia. The Bank offers a range of commercial banking services to its business and professional clients, as well as consumer banking services to individuals living or working in the service area. The Bank also provides commercial banking services to proprietorships, businesses, partnerships, corporations, non-profit organizations and associations, and investors living and working in and near the Bank’s primary service area. The Bank offers a range of retail banking services to accommodate the individual needs of both corporate customers, as well as the community the Bank serves. It also offers online banking, mobile banking and remote deposit services.

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