Financial Contrast: Bank Mutual Corporation (NASDAQ:BKMU) versus The Competition

Bank Mutual Corporation (NASDAQ: BKMU) is one of 211 public companies in the “Commercial Banks” industry, but how does it contrast to its peers? We will compare Bank Mutual Corporation to related businesses based on the strength of its profitability, risk, earnings, valuation, analyst recommendations, institutional ownership and dividends.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Bank Mutual Corporation and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bank Mutual Corporation 0 2 0 0 2.00
Bank Mutual Corporation Competitors 360 2850 2309 66 2.37

Bank Mutual Corporation currently has a consensus target price of $10.75, suggesting a potential upside of 6.44%. As a group, “Commercial Banks” companies have a potential upside of 9.02%. Given Bank Mutual Corporation’s peers stronger consensus rating and higher probable upside, analysts plainly believe Bank Mutual Corporation has less favorable growth aspects than its peers.

Dividends

Bank Mutual Corporation pays an annual dividend of $0.22 per share and has a dividend yield of 2.2%. Bank Mutual Corporation pays out 64.7% of its earnings in the form of a dividend. As a group, “Commercial Banks” companies pay a dividend yield of 1.9% and pay out 35.0% of their earnings in the form of a dividend.

Earnings & Valuation

This table compares Bank Mutual Corporation and its peers gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Bank Mutual Corporation $109.99 million $16.95 million 29.71
Bank Mutual Corporation Competitors $343.38 million $72.32 million 18.98

Bank Mutual Corporation’s peers have higher revenue and earnings than Bank Mutual Corporation. Bank Mutual Corporation is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Bank Mutual Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bank Mutual Corporation 14.19% 5.72% 0.62%
Bank Mutual Corporation Competitors 20.55% 8.69% 0.92%

Volatility & Risk

Bank Mutual Corporation has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500. Comparatively, Bank Mutual Corporation’s peers have a beta of 0.74, indicating that their average share price is 26% less volatile than the S&P 500.

Institutional & Insider Ownership

56.7% of Bank Mutual Corporation shares are owned by institutional investors. Comparatively, 46.5% of shares of all “Commercial Banks” companies are owned by institutional investors. 10.0% of Bank Mutual Corporation shares are owned by insiders. Comparatively, 11.7% of shares of all “Commercial Banks” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Bank Mutual Corporation peers beat Bank Mutual Corporation on 12 of the 15 factors compared.

About Bank Mutual Corporation

Bank Mutual Corporation is a savings and loan holding company. The Company owns Bank Mutual (the Bank), a federally-chartered savings bank. The Bank is engaged in the business of community banking, which includes attracting deposits from and making loans to the general public and private businesses, as well as governmental and non-profit entities. In addition to deposits, the Bank obtains funds through borrowings from the Federal Home Loan Bank (FHLB) of Chicago. These funding sources are used to originate loans, including commercial and industrial loans, multi-family residential loans, non-residential commercial real estate loans, one- to four-family loans, home equity loans and other consumer loans. The Bank also purchases and/or participates in loans from third-party financial institutions and is a seller of residential loans in the secondary market. It also invests in mortgage-related and other investment securities.

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