Reviewing Midland States Bancorp (NASDAQ:MSBI) & Signature Bank (NASDAQ:SBNY)

Signature Bank (NASDAQ:SBNY) and Midland States Bancorp (NASDAQ:MSBI) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Volatility and Risk

Signature Bank has a beta of 9.47, suggesting that its share price is 847% more volatile than the S&P 500. Comparatively, Midland States Bancorp has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500.

Valuation & Earnings

This table compares Signature Bank and Midland States Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Signature Bank	$3.71 billion	N/A	$1.34 billion	$16.38	0.10
Midland States Bancorp	$294.10 million	1.68	$75.46 million	$2.94	7.80

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

Profitability

This table compares Signature Bank and Midland States Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Signature Bank	N/A	N/A	N/A
Midland States Bancorp	12.10%	9.24%	0.79%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Signature Bank and Midland States Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Signature Bank	0	0	0	0	N/A
Midland States Bancorp	0	3	0	0	2.00

Midland States Bancorp has a consensus target price of $26.00, indicating a potential upside of 13.34%. Given Midland States Bancorp’s higher probable upside, analysts clearly believe Midland States Bancorp is more favorable than Signature Bank.

Institutional & Insider Ownership

11.1% of Signature Bank shares are owned by institutional investors. Comparatively, 60.9% of Midland States Bancorp shares are owned by institutional investors. 1.5% of Signature Bank shares are owned by insiders. Comparatively, 5.6% of Midland States Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Midland States Bancorp beats Signature Bank on 7 of the 11 factors compared between the two stocks.

About Signature Bank

As of March 12, 2023, Signature Bank went out of business. Previously, the company provided digital assets banking services and comprised of certain loan portfolios. The company was incorporated in 2000 and is based in New York, New York. Signature Bank now trades on OTCPK.

About Midland States Bancorp

Midland States Bancorp, Inc. operates as a financial holding company for Midland States Bank that provides various banking products and services to individuals, businesses, municipalities, and other entities. It operates through Banking, Wealth Management, and Other segments. The company provides a range of financial products and services to consumers and businesses, including commercial loans to finance agricultural equipment and production; and commercial real estate loans for owner occupied offices, warehouses and production facilities, office buildings, hotels, mixed-use residential and commercial facilities, retail centers, multifamily properties, and assisted living facilities. In addition, it offers construction and land development loans, such as real estate investment properties and residential developments, and lesser extent loans; and residential real estate loans, which includes first and second mortgage loans, and home equity lines of credit consisting of loans secured by first or second mortgages on primarily owner occupied primary residences. The company also provides consumer installment loans for the purchase of cars, boats and other recreational vehicles, as well as for the purchase of major appliances and other home improvement projects; and commercial equipment leasing programs for manufacturing, construction, transportation, and healthcare industries. Further, it offers merchant services; deposit products, including checking, time, savings, money market, and certificates of deposit, as well as sweep accounts; letters of credit; and trust and wealth management services, such as financial and estate planning, trustee and custodial, investment management, tax, insurance, and business planning, corporate retirement plan consulting and administration, and retail brokerage services. The company was founded in 1881 and is headquartered in Effingham, Illinois.