Xenith Bankshares (NASDAQ: XBKS) and MainSource Financial Group (NASDAQ:MSFG) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, institutional ownership and valuation.
Valuation & Earnings
This table compares Xenith Bankshares and MainSource Financial Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Xenith Bankshares||$103.54 million||7.23||$57.04 million||$1.03||31.29|
|MainSource Financial Group||$180.94 million||5.21||$38.32 million||$1.78||20.71|
This is a summary of recent ratings and price targets for Xenith Bankshares and MainSource Financial Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|MainSource Financial Group||0||2||0||0||2.00|
Xenith Bankshares presently has a consensus target price of $28.00, suggesting a potential downside of 13.12%. MainSource Financial Group has a consensus target price of $40.00, suggesting a potential upside of 8.52%. Given MainSource Financial Group’s higher probable upside, analysts plainly believe MainSource Financial Group is more favorable than Xenith Bankshares.
MainSource Financial Group pays an annual dividend of $0.49 per share and has a dividend yield of 1.3%. Xenith Bankshares does not pay a dividend. MainSource Financial Group pays out 27.5% of its earnings in the form of a dividend.
Volatility and Risk
Xenith Bankshares has a beta of 0.99, indicating that its stock price is 1% less volatile than the S&P 500. Comparatively, MainSource Financial Group has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.
Institutional and Insider Ownership
59.6% of Xenith Bankshares shares are held by institutional investors. Comparatively, 55.3% of MainSource Financial Group shares are held by institutional investors. 31.7% of Xenith Bankshares shares are held by company insiders. Comparatively, 4.8% of MainSource Financial Group shares are held by company 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.
This table compares Xenith Bankshares and MainSource Financial Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|MainSource Financial Group||21.86%||10.65%||1.20%|
Xenith Bankshares beats MainSource Financial Group on 9 of the 16 factors compared between the two stocks.
Xenith Bankshares Company Profile
Xenith Bankshares, Inc., formerly Hampton Roads Bankshares, Inc., is a bank holding company for Xenith Bank. Xenith Bank is a commercial bank specifically targeting the banking needs of middle market and small businesses, local real estate developers and investors, and retail banking clients. Xenith Bank’s regional area of operations spans from Baltimore, Maryland, to Raleigh and eastern North Carolina, complementing its presence in greater Washington, D.C., greater Richmond, Virginia, and greater Hampton Roads, Virginia. Its service and products consist primarily of taking deposits from, and making loans to, its target customers within its target markets. It offers other banking related specialized products and services to its customers, such as travelers’ checks, coin counters, wire services, online banking and safe deposit box services. Additionally, it offers commercial customers various cash management products, including remote deposit.
MainSource Financial Group Company Profile
MainSource Financial Group, Inc. is a bank holding company. The Company operates a banking subsidiary, MainSource Bank (the Bank), an Indiana state-chartered bank. Through the Bank, the Company offers a range of financial services, including accepting time and transaction deposits; making consumer, commercial, agribusiness and real estate mortgage loans; renting safe deposit facilities; providing personal and corporate trust services, and providing other corporate services, such as letters of credit and repurchase agreements. The Bank offers various loans, such as commercial loans, commercial real estate loans, residential loans and consumer loans. Commercial loans include secured and unsecured loans, including real estate loans, to individuals and companies and to governmental units within the market area of the Bank. It offers various deposits, which include demand, interest bearing demand, savings/money markets and certificates of deposit.
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