Head-To-Head Analysis: Middlefield Banc (NASDAQ:MBCN) vs. 1st Colonial Bancorp (OTCMKTS:FCOB)

Middlefield Banc (NASDAQ:MBCN) and 1st Colonial Bancorp (OTCMKTS:FCOB) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Middlefield Banc and 1st Colonial Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Middlefield Banc	1	2	1	0	2.00
1st Colonial Bancorp	0	0	0	0	0.00

Middlefield Banc currently has a consensus target price of $30.00, suggesting a potential downside of 11.61%. Given Middlefield Banc’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Middlefield Banc is more favorable than 1st Colonial Bancorp.

Risk and Volatility

Middlefield Banc has a beta of 0.4, indicating that its stock price is 60% less volatile than the S&P 500. Comparatively, 1st Colonial Bancorp has a beta of -0.02, indicating that its stock price is 102% less volatile than the S&P 500.

Insider and Institutional Ownership

31.7% of Middlefield Banc shares are owned by institutional investors. Comparatively, 13.4% of 1st Colonial Bancorp shares are owned by institutional investors. 4.1% of Middlefield Banc shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Middlefield Banc and 1st Colonial Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Middlefield Banc	18.39%	9.79%	1.11%
1st Colonial Bancorp	15.95%	10.45%	0.99%

Valuation & Earnings

This table compares Middlefield Banc and 1st Colonial Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Middlefield Banc	$108.47 million	2.53	$15.52 million	$2.61	13.00
1st Colonial Bancorp	$46.18 million	2.11	$8.06 million	$1.58	12.54

Middlefield Banc has higher revenue and earnings than 1st Colonial Bancorp. 1st Colonial 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.

Summary

Middlefield Banc beats 1st Colonial Bancorp on 13 of the 14 factors compared between the two stocks.

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.

About 1st Colonial Bancorp

1st Colonial Bancorp, Inc. operates as the bank holding company for 1st Colonial Community Bank that provides a range of business and consumer financial services in New Jersey. The company offers various deposit products, including savings accounts, money market accounts, certificates of deposit, club accounts, and business and personal checking accounts. It also provides home equity loans, home equity lines of credit, personal and vehicle loans, residential and commercial mortgages, construction loans, business lines of credit, equipment and vehicle financing, real estate loans, working capital line of credit, and business acquisition loans, as well as small business administration loans. In addition, the company offers cash management services comprising remote deposit capture, ACH/wire transfer, night deposit drop, and merchant services; safe deposit boxes; and coin counting, online and mobile banking, debit card, and ATM services. The company was founded in 2000 and is headquartered in Mount Laurel, New Jersey.