Reviewing M&T Bank (NYSE:MTB) & Mid Penn Bancorp (NASDAQ:MPB)
by Teresa Graham · The Cerbat GemM&T Bank (NYSE:MTB – Get Free Report) and Mid Penn Bancorp (NASDAQ:MPB – Get Free Report) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.
Volatility & Risk
M&T Bank has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500. Comparatively, Mid Penn Bancorp has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500.
Insider and Institutional Ownership
84.7% of M&T Bank shares are owned by institutional investors. Comparatively, 43.1% of Mid Penn Bancorp shares are owned by institutional investors. 0.8% of M&T Bank shares are owned by insiders. Comparatively, 10.7% of Mid Penn Bancorp shares are owned by 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 M&T Bank and Mid Penn Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| M&T Bank | 17.84% | 9.62% | 1.14% |
| Mid Penn Bancorp | 15.57% | 7.99% | 0.82% |
Dividends
M&T Bank pays an annual dividend of $5.40 per share and has a dividend yield of 3.1%. Mid Penn Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 2.7%. M&T Bank pays out 36.5% of its earnings in the form of a dividend. Mid Penn Bancorp pays out 34.6% 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.
Earnings and Valuation
This table compares M&T Bank and Mid Penn Bancorp”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| M&T Bank | $9.17 billion | 3.19 | $2.74 billion | $14.79 | 11.86 |
| Mid Penn Bancorp | $169.18 million | 2.87 | $37.40 million | $2.31 | 12.60 |
M&T Bank has higher revenue and earnings than Mid Penn Bancorp. M&T Bank is trading at a lower price-to-earnings ratio than Mid Penn Bancorp, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for M&T Bank and Mid Penn Bancorp, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| M&T Bank | 1 | 6 | 7 | 0 | 2.43 |
| Mid Penn Bancorp | 0 | 0 | 2 | 0 | 3.00 |
M&T Bank currently has a consensus price target of $181.33, suggesting a potential upside of 3.37%. Mid Penn Bancorp has a consensus price target of $28.50, suggesting a potential downside of 2.06%. Given M&T Bank’s higher probable upside, analysts clearly believe M&T Bank is more favorable than Mid Penn Bancorp.
Summary
M&T Bank beats Mid Penn Bancorp on 12 of the 16 factors compared between the two stocks.
About M&T Bank
M&T Bank Corporation operates as a bank holding company for Manufacturers and Traders Trust Company and Wilmington Trust, National Association that engages in the provision of retail and commercial banking products and services in the United States. The company operates through three segments: Commercial Bank, Retail Bank, and Institutional Services and Wealth Management. It offers a range of credit products and banking services, such as commercial lending and leasing, letters of credits, commercial real estate loans, and credit facilities secured by various commercial real estate to middle-market and large commercial customers. The company also provides customers deposit products, including demand, savings and time accounts, and other services; automobile and recreational finance loans, home equity loans and lines of credit, credit cards, and other loan products, as well as residential mortgage and real estate loans; business loans, cash management, payroll, and direct deposit services to consumers and small businesses through branch network, telephone banking, internet banking, and automated teller machines. In addition, it offers trustee, agency, investment management, security brokerage, and administrative services; personal trust, planning, fiduciary, asset management, family office, and other services; and investment products, including mutual funds and annuities, and other services for corporations and institutions, investment bankers, corporate tax, finance and legal executives, and other institutional clients. The company was founded in 1856 and is headquartered in Buffalo, New York.
About Mid Penn Bancorp
Mid Penn Bancorp, Inc. operates as the bank holding company for Mid Penn Bank that provides commercial banking services to individuals, partnerships, non-profit organizations, and corporations. The company offers various time and demand deposit products, including checking accounts, savings accounts, clubs, money market deposit accounts, certificates of deposit, and individual retirement accounts. It also provides a range of loan products comprising mortgage and home equity loans, secured and unsecured commercial and consumer loans, lines of credit, construction financing, farm loans, community development loans, loans to non-profit entities, and local government loans. In addition, the company offers trust, retail investment, wealth management, and insurance services; and provides online banking, telephone banking, cash management, and automated teller services, as well as safe deposit boxes. The company was founded in 1868 and is headquartered in Harrisburg, Pennsylvania.