MutualFirst Financial (NASDAQ: MFSF) and Virginia Commerce Bancorp (NASDAQ:VCBI) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.
Earnings & Valuation
This table compares MutualFirst Financial and Virginia Commerce Bancorp’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| MutualFirst Financial | $64.28 million | 3.94 | $13.65 million | $1.85 | 18.54 |
| Virginia Commerce Bancorp | N/A | N/A | N/A | N/A | N/A |
MutualFirst Financial has higher revenue and earnings than Virginia Commerce Bancorp.
Dividends
MutualFirst Financial pays an annual dividend of $0.64 per share and has a dividend yield of 1.9%. Virginia Commerce Bancorp does not pay a dividend. MutualFirst Financial pays out 34.6% of its earnings in the form of a dividend.
Analyst Ratings
This is a breakdown of recent ratings and target prices for MutualFirst Financial and Virginia Commerce Bancorp, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MutualFirst Financial | 0 | 2 | 0 | 0 | 2.00 |
| Virginia Commerce Bancorp | 0 | 0 | 0 | 0 | N/A |
MutualFirst Financial presently has a consensus price target of $33.00, suggesting a potential downside of 3.79%. Given MutualFirst Financial’s higher probable upside, equities analysts clearly believe MutualFirst Financial is more favorable than Virginia Commerce Bancorp.
Institutional & Insider Ownership
45.8% of MutualFirst Financial shares are held by institutional investors. 11.3% of MutualFirst Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares MutualFirst Financial and Virginia Commerce Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| MutualFirst Financial | 18.53% | 9.66% | 0.89% |
| Virginia Commerce Bancorp | N/A | N/A | N/A |
Summary
MutualFirst Financial beats Virginia Commerce Bancorp on 8 of the 9 factors compared between the two stocks.
About MutualFirst Financial
MutualFirst Financial, Inc. (MutualFirst) is the bank holding company of MutualBank (MutualBank or the Bank). The Bank offers financial services through approximately 30 full service retail financial center offices in Allen, Delaware, Elkhart, Grant, Kosciusko, Randolph, Saint Joseph and Wabash counties in Indiana. MutualBank also has trust offices in Carmel and Crawfordsville, Indiana and a loan origination office in New Buffalo, Michigan. The Bank has a subsidiary, Summit Mortgage, Inc., that operates a mortgage banking firm in Fort Wayne, Indiana. In addition, it originates residential mortgage and commercial loans. MutualWealth and MutualFinancial Advisors are the wealth management and brokerage divisions of the Bank that provide a range of fee-based financial services, including trust, investment, insurance, broker advisory, retirement plan and private banking services, in its market areas.
About Virginia Commerce Bancorp
Virginia Commerce Bancorp, Inc. is the holding company for Virginia Commerce Bank (the Bank). The Bank is a full-service community bank that provides loan and deposit products to commercial and retail customers in the Washington Metropolitan Area, with the primary focus on Northern Virginia. The Bank’s customer base includes small-to-medium sized businesses, including firms that have contracts with the United States Government, associations, retailers and industrial businesses, professionals and their firms, business executives, investors and consumers. The Bank’s primary service area consists of the Northern Virginia suburbs of Washington, D.C., including Arlington, Fairfax, Fauquier, Loudoun, Prince William, Spotsylvania and Stafford Counties and the cities of Alexandria, Fairfax, Falls Church, Fredericksburg, Manassas and Manassas Park. Effective January 31, 2014, United Bankshares Inc acquired the entire share capital of Virginia Commerce Bancorp Inc.
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