Magyar Bancorp (MGYR) & Its Rivals Financial Analysis

Magyar Bancorp (NASDAQ:MGYR) is one of 919 publicly-traded companies in the “Banks” industry, but how does it weigh in compared to its peers? We will compare Magyar Bancorp to similar companies based on the strength of its institutional ownership, valuation, earnings, analyst recommendations, dividends, profitability and risk.

Earnings & Valuation

This table compares Magyar Bancorp and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Magyar Bancorp	$63.60 million	$12.56 million	11.01
Magyar Bancorp Competitors	$9.95 billion	$2.42 billion	20.29

Magyar Bancorp’s peers have higher revenue and earnings than Magyar Bancorp. Magyar Bancorp is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Magyar Bancorp and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Magyar Bancorp	19.74%	10.11%	1.19%
Magyar Bancorp Competitors	15.66%	9.44%	0.93%

Risk & Volatility

Magyar Bancorp has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500. Comparatively, Magyar Bancorp’s peers have a beta of 0.61, meaning that their average share price is 39% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Magyar Bancorp and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Magyar Bancorp	0	1	0	0	2.00
Magyar Bancorp Competitors	7481	30219	27791	1473	2.35

As a group, “Banks” companies have a potential upside of 17.08%. Given Magyar Bancorp’s peers stronger consensus rating and higher probable upside, analysts plainly believe Magyar Bancorp has less favorable growth aspects than its peers.

Insider and Institutional Ownership

46.3% of Magyar Bancorp shares are owned by institutional investors. Comparatively, 48.0% of shares of all “Banks” companies are owned by institutional investors. 11.1% of Magyar Bancorp shares are owned by company insiders. Comparatively, 9.7% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Magyar Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 1.8%. Magyar Bancorp pays out 20.1% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.3% and pay out 28.9% of their earnings in the form of a dividend. Magyar Bancorp has increased its dividend for 3 consecutive years.

Summary

Magyar Bancorp peers beat Magyar Bancorp on 10 of the 15 factors compared.

Magyar Bancorp Company Profile

Magyar Bancorp, Inc. operates as the holding company for Magyar Bank that provides various consumer and commercial banking services to individuals, businesses, and nonprofit organizations in New Jersey, the United States. It accepts various deposit accounts, including demand, savings, NOW, money market, and retirement accounts, as well as certificates of deposit. The company also provides residential mortgage loans, multi-family and commercial real estate mortgage loans, home equity loans and lines of credit, commercial business loans, and construction loans, as well as small business administration loans. In addition, it offers non-deposit investment products and financial planning services, including insurance products, fixed and variable annuities, and retirement planning for individual and commercial customers; and buys, sells, and holds investment securities. The company has branch offices located in New Brunswick, North Brunswick, South Brunswick, Branchburg, Bridgewater, and Edison, New Jersey. Magyar Bancorp, Inc. was founded in 1922 and is headquartered in New Brunswick, New Jersey.