M&T Bank (NYSE:MTB) versus Mid Penn Bancorp (NASDAQ:MPB) Head to Head Comparison

Mid Penn Bancorp (NASDAQ:MPB) and M&T Bank (NYSE:MTB) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Mid Penn Bancorp and M&T Bank, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mid Penn Bancorp	0	0	2	0	3.00
M&T Bank	1	7	7	0	2.40

Mid Penn Bancorp presently has a consensus price target of $28.50, indicating a potential downside of 3.88%. M&T Bank has a consensus price target of $175.85, indicating a potential downside of 0.99%. Given M&T Bank’s higher possible upside, analysts clearly believe M&T Bank is more favorable than Mid Penn Bancorp.

Valuation and Earnings

This table compares Mid Penn Bancorp and M&T Bank”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mid Penn Bancorp	$169.18 million	2.92	$37.40 million	$2.31	12.84
M&T Bank	$9.17 billion	3.23	$2.74 billion	$14.79	12.01

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.

Dividends

Mid Penn Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 2.7%. M&T Bank pays an annual dividend of $5.40 per share and has a dividend yield of 3.0%. Mid Penn Bancorp pays out 34.6% of its earnings in the form of a dividend. M&T Bank pays out 36.5% 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.

Volatility & Risk

Mid Penn Bancorp has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500. Comparatively, M&T Bank has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500.

Profitability

This table compares Mid Penn Bancorp and M&T Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mid Penn Bancorp	15.57%	7.99%	0.82%
M&T Bank	17.84%	9.62%	1.14%

Institutional and Insider Ownership

43.1% of Mid Penn Bancorp shares are owned by institutional investors. Comparatively, 84.7% of M&T Bank shares are owned by institutional investors. 10.7% of Mid Penn Bancorp shares are owned by company insiders. Comparatively, 0.8% of M&T Bank shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

M&T Bank beats Mid Penn Bancorp on 12 of the 16 factors compared between the two stocks.

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.

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.