Analyzing Middlefield Banc Corp. (MBCN) & Credicorp (BAP)
Credicorp (NYSE: BAP) and Middlefield Banc Corp. (NASDAQ:MBCN) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, profitability, analyst recommendations and institutional ownership.
Credicorp pays an annual dividend of $12.29 per share and has a dividend yield of 5.9%. Middlefield Banc Corp. pays an annual dividend of $1.08 per share and has a dividend yield of 2.3%. Credicorp pays out 89.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Middlefield Banc Corp. pays out 36.7% of its earnings in the form of a dividend. Credicorp has increased its dividend for 2 consecutive years. Credicorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation & Earnings
This table compares Credicorp and Middlefield Banc Corp.’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Middlefield Banc Corp.||$34.86 million||4.35||$9.44 million||$2.94||16.05|
Middlefield Banc Corp. has higher revenue and earnings than Credicorp. Credicorp is trading at a lower price-to-earnings ratio than Middlefield Banc Corp., indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
66.3% of Credicorp shares are owned by institutional investors. Comparatively, 24.6% of Middlefield Banc Corp. shares are owned by institutional investors. 15.9% of Credicorp shares are owned by company insiders. Comparatively, 8.4% of Middlefield Banc Corp. shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares Credicorp and Middlefield Banc Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Middlefield Banc Corp.||18.69%||8.19%||0.82%|
This is a breakdown of recent ratings and recommmendations for Credicorp and Middlefield Banc Corp., as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Middlefield Banc Corp.||0||1||1||0||2.50|
Credicorp presently has a consensus price target of $222.00, indicating a potential upside of 6.80%. Middlefield Banc Corp. has a consensus price target of $50.50, indicating a potential upside of 6.99%. Given Middlefield Banc Corp.’s higher possible upside, analysts clearly believe Middlefield Banc Corp. is more favorable than Credicorp.
Volatility & Risk
Credicorp has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500. Comparatively, Middlefield Banc Corp. has a beta of 0.17, suggesting that its share price is 83% less volatile than the S&P 500.
Credicorp beats Middlefield Banc Corp. on 10 of the 14 factors compared between the two stocks.
Credicorp Company Profile
Credicorp Ltd. is a financial services holding company in Peru. The Company has four operating segments based on its products and services, which include banking, insurance, pension funds and investment banking. Its operating subsidiaries include Banco de Credito del Peru; Atlantic Security Bank, which it holds through Atlantic Security Holding Corporation; El Pacifico-Peruano Suiza Compania de Seguros y Reaseguros (Grupo Pacifico); Prima AFP S.A., and Credicorp Capital Ltd. (Credicorp Capital). Its banking business is focused on commercial and consumer loans, credit facilities, deposits, current accounts and credit cards. The Company conducts its insurance business through Grupo Pacifico. It conducts all of its pension fund activities through its private pension fund administrator Prima AFP S.A. The investment banking business units are grouped under Credicorp Capital, which carries its business under asset management, sales and trading, and corporate finance business lines.
Middlefield Banc Corp. Company Profile
Middlefield Banc Corp. is a bank holding company. The Company’s subsidiaries include The Middlefield Banking Company (MBC) and EMORECO Inc. MBC is engaged in the general commercial banking business in northeastern and central Ohio. MBC offers customers a range of banking services, including checking, savings, money market accounts, time certificates of deposit, commercial loans, real estate loans, various consumer loans, safe deposit facilities and travelers’ checks. MBC offers online banking and bill payment services to individuals, and online cash management services to business customers through its Website at www.middlefieldbank.com. EMORECO engages in the resolution and disposition of troubled assets in central Ohio. MBC’s loan products include operational and working capital loans, loans to finance capital purchases, term business loans, residential construction loans, selected guaranteed or subsidized loan programs for small businesses, and consumer installment loans.
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