Head-To-Head Contrast: ConnectOne Bancorp (NASDAQ:CNOB) & Mid Penn Bancorp (NASDAQ:MPB)

Mid Penn Bancorp (NASDAQ:MPB) and ConnectOne Bancorp (NASDAQ:CNOB) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, risk, earnings, valuation and institutional ownership.

Dividends

Mid Penn Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 2.7%. ConnectOne Bancorp pays an annual dividend of $0.72 per share and has a dividend yield of 2.9%. Mid Penn Bancorp pays out 34.6% of its earnings in the form of a dividend. ConnectOne Bancorp pays out 38.1% 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.

Risk & Volatility

Mid Penn Bancorp has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500. Comparatively, ConnectOne Bancorp has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500.

Profitability

This table compares Mid Penn Bancorp and ConnectOne Bancorp’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%
ConnectOne Bancorp	14.56%	7.13%	0.80%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Mid Penn Bancorp and ConnectOne Bancorp, 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
ConnectOne Bancorp	0	1	2	1	3.00

Mid Penn Bancorp presently has a consensus target price of $28.50, suggesting a potential downside of 3.98%. ConnectOne Bancorp has a consensus target price of $25.00, suggesting a potential upside of 0.81%. Given ConnectOne Bancorp’s higher probable upside, analysts clearly believe ConnectOne Bancorp is more favorable than Mid Penn Bancorp.

Insider & Institutional Ownership

43.1% of Mid Penn Bancorp shares are owned by institutional investors. Comparatively, 67.7% of ConnectOne Bancorp shares are owned by institutional investors. 10.7% of Mid Penn Bancorp shares are owned by insiders. Comparatively, 6.4% of ConnectOne Bancorp shares are owned by 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.

Valuation and Earnings

This table compares Mid Penn Bancorp and ConnectOne Bancorp”s 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	2.93	$37.40 million	$2.31	12.85
ConnectOne Bancorp	$261.94 million	3.63	$87.00 million	$1.89	13.12

ConnectOne Bancorp has higher revenue and earnings than Mid Penn Bancorp. Mid Penn Bancorp is trading at a lower price-to-earnings ratio than ConnectOne Bancorp, indicating that it is currently the more affordable of the two stocks.

Summary

ConnectOne Bancorp beats Mid Penn Bancorp on 9 of the 15 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 ConnectOne Bancorp

ConnectOne Bancorp, Inc. operates as the bank holding company for ConnectOne Bank that provides commercial banking products and services for small and mid-sized businesses, local professionals, and individuals in the New York Metropolitan area and South Florida market. The company offers personal and business checking, money market, and time and savings accounts; credit cards, wire transfers, safe deposit boxes, automated teller services and telephone, and internet and mobile banking. It provides retirement accounts, consumers and cash management services for business clients, including treasury direct, automated clearing house, remote deposit capture, and digital invoicing. In addition, the company offers consumer and commercial business loans, including lines of credit, commercial and residential mortgages, home equity and bridge loans, and other personal loans; commercial loans secured by collateral, such as business assets comprising accounts receivable, inventory and equipment, and mortgages filed on commercial and residential real estate, as well as cash balances and marketable securities. Further, it provides real estate loans, which includes loans secured by first liens on completed commercial properties, including multi-family properties, to purchase or refinance properties; residential mortgages, such as loans secured by first liens on 1-4 family and condominium; and cooperative residential real estate loans. The company was formerly known as Center Bancorp, Inc. and changed its name to ConnectOne Bancorp, Inc. in July 2014. ConnectOne Bancorp, Inc. was incorporated in 1982 and is headquartered in Englewood Cliffs, New Jersey.