Head to Head Analysis: Central Pacific Financial (NYSE:CPF) vs. Middlefield Banc (NASDAQ:MBCN)

Central Pacific Financial (NYSE:CPF) and Middlefield Banc (NASDAQ:MBCN) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, earnings, analyst recommendations, dividends and profitability.

Dividends

Central Pacific Financial pays an annual dividend of $1.08 per share and has a dividend yield of 3.7%. Middlefield Banc pays an annual dividend of $0.84 per share and has a dividend yield of 3.1%. Central Pacific Financial pays out 54.8% of its earnings in the form of a dividend. Middlefield Banc pays out 43.7% 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.

Insider and Institutional Ownership

88.4% of Central Pacific Financial shares are held by institutional investors. Comparatively, 31.7% of Middlefield Banc shares are held by institutional investors. 2.7% of Central Pacific Financial shares are held by insiders. Comparatively, 3.8% of Middlefield Banc shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Central Pacific Financial and Middlefield Banc”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Central Pacific Financial	$250.46 million	3.14	$53.41 million	$1.97	14.73
Middlefield Banc	$67.79 million	3.19	$15.52 million	$1.92	13.96

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

Volatility & Risk

Central Pacific Financial has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, Middlefield Banc has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500.

Profitability

This table compares Central Pacific Financial and Middlefield Banc’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Central Pacific Financial	15.49%	12.03%	0.85%
Middlefield Banc	14.31%	7.47%	0.85%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Central Pacific Financial and Middlefield Banc, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Central Pacific Financial	0	0	0	0	0.00
Middlefield Banc	0	2	0	0	2.00

Middlefield Banc has a consensus target price of $28.50, suggesting a potential upside of 6.34%. Given Middlefield Banc’s stronger consensus rating and higher probable upside, analysts plainly believe Middlefield Banc is more favorable than Central Pacific Financial.

Summary

Central Pacific Financial beats Middlefield Banc on 9 of the 14 factors compared between the two stocks.

About Central Pacific Financial

Central Pacific Financial Corp. operates as the bank holding company for Central Pacific Bank that provides a range of commercial banking products and services to businesses, professionals, and individuals in the United States. It offers various deposit products and services, including checking, savings and time deposits, cash management and digital banking, trust, and retail brokerage services, as well as money market accounts and certificates of deposit. The company also provides various lending activities, such as commercial, commercial and residential mortgage, home equity, and consumer loans; and other products and services comprising debit cards, internet and mobile banking, cash management services, full-service ATMs, safe deposit boxes, international banking services, night depository facilities, foreign exchange, and wire transfers. In addition, it offers wealth management products and services that include non-deposit investment products, annuities, insurance, investment management, asset custody and general consultation, and planning services. The company was founded in 1954 and is headquartered in Honolulu, Hawaii.

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.