Mercantil Bank (NASDAQ:AMTB) and Fulton Financial (NASDAQ:FULT) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.
Institutional & Insider Ownership
18.7% of Mercantil Bank shares are owned by institutional investors. Comparatively, 64.8% of Fulton Financial shares are owned by institutional investors. 16.5% of Mercantil Bank shares are owned by insiders. Comparatively, 0.9% of Fulton Financial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Mercantil Bank has a beta of 0.45, suggesting that its share price is 55% less volatile than the S&P 500. Comparatively, Fulton Financial has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500.
This is a summary of current ratings and recommmendations for Mercantil Bank and Fulton Financial, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Mercantil Bank presently has a consensus price target of $17.33, suggesting a potential upside of 15.56%. Fulton Financial has a consensus price target of $12.00, suggesting a potential upside of 14.94%. Given Mercantil Bank’s higher possible upside, equities research analysts clearly believe Mercantil Bank is more favorable than Fulton Financial.
This table compares Mercantil Bank and Fulton Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Mercantil Bank and Fulton Financial’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Mercantil Bank||$370.08 million||1.71||$51.33 million||$1.24||12.10|
|Fulton Financial||$1.04 billion||1.62||$226.34 million||$1.39||7.51|
Fulton Financial has higher revenue and earnings than Mercantil Bank. Fulton Financial is trading at a lower price-to-earnings ratio than Mercantil Bank, indicating that it is currently the more affordable of the two stocks.
Fulton Financial beats Mercantil Bank on 10 of the 14 factors compared between the two stocks.
Mercantil Bank Company Profile
Mercantil Bank Holding Corporation operates as a bank holding company for Amerant Bank, N.A. that provides banking products and services to individuals and businesses in the United States and internationally. The company operates through four segments: Personal and Commercial Banking, Corporate LATAM, Treasury, and Institutional. It offers a range of checking and savings accounts, certificates of deposit, and money market accounts. The company also provides variable and fixed rate commercial real estate loans; loans secured by owner-occupied properties; loans to domestic and foreign individuals primarily secured by personal residence; working capital loans, asset-based lending, participations in shared national credits, purchased receivables, and small business administration loans; loans to financial institutions and acceptances; and consumer loans and overdrafts. In addition, it offers trust and estate planning products and services, brokerage and investment advisory services in global capital markets, and wealth management and fiduciary services. Further, the company provides debit and credit cards; remote deposit capture, online banking, mobile banking, e-statements, night depository, direct deposit, and treasury management services; and cashier's checks, safe deposit boxes, and letters of credit. As of March 21, 2019, it operated 23 banking centers comprising 15 in South Florida and 8 in Houston, as well as loan production offices in Dallas, Texas, and New York. The company was founded in 1979 and is headquartered in Coral Gables, Florida.
Fulton Financial Company Profile
Fulton Financial Corporation operates as a multi-bank financial holding company that provides banking and financial services to businesses and consumers. It accepts various checking accounts and savings deposit products, certificates of deposit, and individual retirement accounts. The company also offers consumer loans, including home equity loans and lines of credit, automobile loans, automobile and equipment leases, personal lines of credit, and checking account overdraft protection; construction and jumbo residential mortgage loans; and commercial lending products comprising commercial, financial, agricultural, and real estate loans. In addition, it provides equipment leasing, letters of credit, cash management services, and traditional deposit products; and investment management, trust, brokerage, insurance, and investment advisory services. Further, the company owns investment securities and other investments, as well as trust preferred securities; and sells various life insurance products. It provides its products and services through branch banking, as well as through a network of automated teller machines, telephone banking, mobile banking, and online banking. As of December 31, 2018, the company operated 234 branches in Pennsylvania, Maryland, Delaware, New Jersey, and Virginia. Fulton Financial Corporation was founded in 1882 and is headquartered in Lancaster, Pennsylvania.
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