MidWestOne Financial Group (NASDAQ:MOFG) and Peoples Financial (OTCMKTS:PFBX) Head to Head Survey

MidWestOne Financial Group (NASDAQ:MOFG) and Peoples Financial (OTCMKTS:PFBX) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Volatility and Risk

MidWestOne Financial Group has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, Peoples Financial has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500.

Dividends

MidWestOne Financial Group pays an annual dividend of $0.97 per share and has a dividend yield of 4.8%. Peoples Financial pays an annual dividend of $0.36 per share and has a dividend yield of 2.3%. MidWestOne Financial Group pays out 73.5% of its earnings in the form of a dividend. Peoples Financial pays out 18.4% 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. MidWestOne Financial Group has raised its dividend for 13 consecutive years. MidWestOne Financial Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

This table compares MidWestOne Financial Group and Peoples Financial’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MidWestOne Financial Group	$268.04 million	1.18	$20.86 million	$1.32	15.19
Peoples Financial	$39.52 million	1.83	$9.17 million	$1.96	7.93

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

Analyst Ratings

This is a summary of current ratings and price targets for MidWestOne Financial Group and Peoples Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MidWestOne Financial Group	0	4	0	0	2.00
Peoples Financial	0	0	0	0	N/A

MidWestOne Financial Group presently has a consensus price target of $25.67, indicating a potential upside of 28.01%. Given MidWestOne Financial Group’s higher probable upside, analysts clearly believe MidWestOne Financial Group is more favorable than Peoples Financial.

Institutional & Insider Ownership

65.4% of MidWestOne Financial Group shares are owned by institutional investors. Comparatively, 32.8% of Peoples Financial shares are owned by institutional investors. 3.2% of MidWestOne Financial Group shares are owned by company insiders. Comparatively, 28.1% of Peoples Financial shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares MidWestOne Financial Group and Peoples Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MidWestOne Financial Group	7.78%	7.12%	0.56%
Peoples Financial	23.19%	14.34%	1.05%

Summary

MidWestOne Financial Group beats Peoples Financial on 8 of the 15 factors compared between the two stocks.

About MidWestOne Financial Group

MidWestOne Financial Group, Inc. operates as the bank holding company for MidWestOne Bank that provides commercial and retail banking products and services to individuals, businesses, governmental units, and institutional customers. It offers range of deposit products, including noninterest bearing and interest bearing demand deposits, savings, money market, and time deposits accounts. The company also provides commercial, real estate, agricultural, credit card, and consumer loans; and financing arrangements, such as brokered deposits, term debt, subordinated debt, and equity. In addition, it offers trust and investment services comprising administering estates, trusts, and conservatorships; property and farm management, investment advisory, retail securities brokerage, financial planning, and custodial services; and licensed brokers services. Further, the company provides online and mobile banking, debit cards, automated teller machines, and safe deposit boxes. MidWestOne Financial Group, Inc. was founded in 1934 and is headquartered in Iowa City, Iowa.

About Peoples Financial

Peoples Financial Corporation operates as the bank holding company for The Peoples Bank that provides banking, financial, and trust services to government entities, individuals, and small and commercial businesses in Mississippi. It accepts various deposits, such as interest and non-interest-bearing checking accounts, savings accounts, certificates of deposit, and individual retirement accounts (IRAs). The company also offers business, commercial, real estate, construction, personal, and installment loans; and personal trust, agencies, and estate services, including living and testamentary trusts, executorships, guardianships, and conservatorships. In addition, it provides self-directed IRAs; and escrow management, stock transfer, and bond paying agency accounts to corporate customers. Further, the company offers various other services consisting of safe deposit box rental, wire transfer, night drop facilities, collection, cash management, and Internet banking services. The company was founded in 1896 and is headquartered in Biloxi, Mississippi.