Analyzing Signature Bank (NASDAQ:SBNY) & Mid Penn Bancorp (NASDAQ:MPB)

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

Insider & Institutional Ownership

11.1% of Signature Bank shares are held by institutional investors. Comparatively, 43.1% of Mid Penn Bancorp shares are held by institutional investors. 1.5% of Signature Bank shares are held by insiders. Comparatively, 8.1% of Mid Penn Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Signature Bank and Mid Penn Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Signature Bank	0	0	0	0	0.00
Mid Penn Bancorp	0	0	2	0	3.00

Mid Penn Bancorp has a consensus price target of $36.00, suggesting a potential upside of 35.70%. Given Mid Penn Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe Mid Penn Bancorp is more favorable than Signature Bank.

Earnings and Valuation

This table compares Signature Bank and Mid Penn Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Signature Bank	$2.70 billion	0.02	$1.34 billion	N/A	N/A
Mid Penn Bancorp	$182.08 million	2.82	$49.44 million	$2.88	9.21

Signature Bank has higher revenue and earnings than Mid Penn Bancorp.

Volatility & Risk

Signature Bank has a beta of 11.34, indicating that its share price is 1,034% more volatile than the S&P 500. Comparatively, Mid Penn Bancorp has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500.

Dividends

Signature Bank pays an annual dividend of $0.70 per share and has a dividend yield of 82.4%. Mid Penn Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 3.0%. Mid Penn Bancorp pays out 27.8% of its earnings in the form of a dividend.

Profitability

This table compares Signature Bank and Mid Penn 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
Mid Penn Bancorp	15.99%	8.43%	0.87%

Summary

Mid Penn Bancorp beats Signature Bank on 9 of the 14 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 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.