Primis Financial (NASDAQ:FRST) vs. Merchants Bancorp (NASDAQ:MBIN) Head-To-Head Comparison

Primis Financial (NASDAQ:FRST) and Merchants Bancorp (NASDAQ:MBIN) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, institutional ownership, risk, analyst recommendations and valuation.

Volatility and Risk

Primis Financial has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500. Comparatively, Merchants Bancorp has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500.

Insider & Institutional Ownership

75.0% of Primis Financial shares are owned by institutional investors. Comparatively, 24.6% of Merchants Bancorp shares are owned by institutional investors. 10.9% of Primis Financial shares are owned by insiders. Comparatively, 39.7% of Merchants Bancorp shares are owned by 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.

Profitability

This table compares Primis Financial and Merchants Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Primis Financial	7.31%	4.65%	0.47%
Merchants Bancorp	21.33%	22.36%	1.69%

Dividends

Primis Financial pays an annual dividend of $0.40 per share and has a dividend yield of 3.2%. Merchants Bancorp pays an annual dividend of $0.36 per share and has a dividend yield of 0.9%. Merchants Bancorp pays out 6.0% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of recent ratings and target prices for Primis Financial and Merchants Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Primis Financial	0	0	1	0	3.00
Merchants Bancorp	0	1	2	0	2.67

Primis Financial presently has a consensus target price of $14.00, suggesting a potential upside of 10.85%. Merchants Bancorp has a consensus target price of $52.33, suggesting a potential upside of 27.36%. Given Merchants Bancorp’s higher probable upside, analysts plainly believe Merchants Bancorp is more favorable than Primis Financial.

Valuation & Earnings

This table compares Primis Financial and Merchants Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Primis Financial	$244.23 million	1.28	-$7.83 million	N/A	N/A
Merchants Bancorp	$1.19 billion	1.58	$279.23 million	$6.04	6.80

Merchants Bancorp has higher revenue and earnings than Primis Financial.

Summary

Merchants Bancorp beats Primis Financial on 10 of the 15 factors compared between the two stocks.

About Primis Financial

Primis Financial Corp. operates as the bank holding company for Primis Bank that provides a range of financial services to individuals and small and medium sized businesses in the United States. Its deposit products include checking, NOW, savings, and money market accounts, as well as certificates of deposits. The company also provides commercial business and real estate, construction, secured asset based, small business administration, mortgage warehouse lending products, as well as financing for medical, dental, and veterinary businesses; residential mortgage, trust mortgage, home equity lines of credit, secured and unsecured personal, and consumer loans, as well as life insurance premium financing and demand loans. It also offers cash management services comprising investment/sweep, zero balance, and controlled disbursement accounts; and wire transfer, employer/payroll processing, night depository, depository transfer, merchant, ACH origination, and remote deposit capture services. In addition, the company provides debit cards, ATM services, notary services, and mobile and online banking. It operates full-service branches in Virginia and Maryland. The company was formerly known as Southern National Bancorp of Virginia, Inc. and changed its name to Primis Financial Corp. Primis Financial Corp. was founded in 2004 and is based in McLean, Virginia.

About Merchants Bancorp

Merchants Bancorp operates as the diversified bank holding company in the United States. It operates through three segments: Multi-family Mortgage Banking, Mortgage Warehousing, and Banking. The Multi-family Mortgage Banking segment engages in the mortgage banking, which originates and services government sponsored mortgages, including bridge financing products to refinance, acquire, or reposition multi-family housing projects, and construction lending for multi-family and healthcare facilities. This segment also offers customized loan products for need-based skilled nursing facilities, such as independent living, assisted living, and memory care; and tax credit equity syndicator service. The Mortgage Warehousing segment funds agency eligible residential loans, as well as commercial loans to non-depository financial institutions. The Banking segment offers a range of financial products and services to consumers and businesses, which includes retail banking, commercial lending, agricultural lending, retail and correspondent residential mortgage banking, and small business administration lending. Merchants Bancorp was founded in 1990 and is headquartered in Carmel, Indiana.