Head-To-Head Comparison: Middlefield Banc (NASDAQ:MBCN) versus John Marshall Bancorp (NASDAQ:JMSB)

Middlefield Banc (NASDAQ:MBCN) and John Marshall Bancorp (NASDAQ:JMSB) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, earnings, risk and institutional ownership.

Risk & Volatility

Middlefield Banc has a beta of 0.7, indicating that its share price is 30% less volatile than the S&P 500. Comparatively, John Marshall Bancorp has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500.

Dividends

Middlefield Banc pays an annual dividend of $0.84 per share and has a dividend yield of 3.1%. John Marshall Bancorp pays an annual dividend of $0.25 per share and has a dividend yield of 1.3%. Middlefield Banc pays out 43.7% of its earnings in the form of a dividend. John Marshall Bancorp pays out 20.8% 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.

Analyst Recommendations

This is a breakdown of current ratings for Middlefield Banc and John Marshall Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Middlefield Banc	0	2	0	0	2.00
John Marshall Bancorp	0	0	0	0	0.00

Middlefield Banc presently has a consensus price target of $28.50, indicating a potential upside of 6.34%. Given Middlefield Banc’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Middlefield Banc is more favorable than John Marshall Bancorp.

Valuation & Earnings

This table compares Middlefield Banc and John Marshall Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Middlefield Banc	$67.79 million	3.19	$15.52 million	$1.92	13.96
John Marshall Bancorp	$53.32 million	4.98	$17.12 million	$1.20	15.54

John Marshall Bancorp has lower revenue, but higher earnings than Middlefield Banc. Middlefield Banc is trading at a lower price-to-earnings ratio than John Marshall Bancorp, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Middlefield Banc and John Marshall Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Middlefield Banc	14.31%	7.47%	0.85%
John Marshall Bancorp	15.23%	7.20%	0.76%

Institutional and Insider Ownership

31.7% of Middlefield Banc shares are held by institutional investors. Comparatively, 39.1% of John Marshall Bancorp shares are held by institutional investors. 3.8% of Middlefield Banc shares are held by company insiders. Comparatively, 12.7% of John Marshall Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Middlefield Banc beats John Marshall Bancorp on 8 of the 15 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 John Marshall Bancorp

John Marshall Bancorp, Inc. operates as the bank holding company for John Marshall Bank that provides banking products and financial services. The company accepts checking, demand, NOW, savings, and money market accounts, as well as certificates of deposit. It offers residential and commercial construction and development loans, commercial term, mortgage, commercial real estate, industrial loans, and other commercial lines of credit; debit and credit cards; and treasury and cash management, investment, business and personal insurance, remote deposit capture, deposit sweep and online and mobile banking services. The company serves small to medium-sized businesses, their owners and employees, professional corporations, non-profits, and individuals. The company was founded in 2005 and is headquartered in Reston, Virginia.