Head to Head Analysis: Midland States Bancorp (MSBI) versus County Bancorp (ICBK)

Midland States Bancorp (NASDAQ: ICBK) and County Bancorp (NASDAQ:ICBK) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Institutional and Insider Ownership

45.6% of Midland States Bancorp shares are held by institutional investors. Comparatively, 26.1% of County Bancorp shares are held by institutional investors. 14.9% of Midland States Bancorp shares are held by insiders. Comparatively, 25.6% of County Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Midland States Bancorp pays an annual dividend of $0.88 per share and has a dividend yield of 2.7%. County Bancorp pays an annual dividend of $0.28 per share and has a dividend yield of 1.1%. Midland States Bancorp pays out 44.2% of its earnings in the form of a dividend. County Bancorp pays out 18.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. County Bancorp has raised its dividend for 2 consecutive years.

Valuation & Earnings

This table compares Midland States Bancorp and County Bancorp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Midland States Bancorp $212.48 million 3.69 $16.05 million $1.99 16.63
County Bancorp $60.70 million 2.82 $10.42 million $1.49 17.13

Midland States Bancorp has higher revenue and earnings than County Bancorp. Midland States Bancorp is trading at a lower price-to-earnings ratio than County Bancorp, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Midland States Bancorp and County Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Midland States Bancorp 0 0 1 0 3.00
County Bancorp 0 2 2 0 2.50

Midland States Bancorp presently has a consensus target price of $42.00, indicating a potential upside of 26.93%. County Bancorp has a consensus target price of $29.75, indicating a potential upside of 16.58%. Given Midland States Bancorp’s stronger consensus rating and higher possible upside, research analysts plainly believe Midland States Bancorp is more favorable than County Bancorp.

Profitability

This table compares Midland States Bancorp and County Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Midland States Bancorp 7.33% 8.50% 0.87%
County Bancorp 20.40% 10.15% 0.95%

Volatility & Risk

Midland States Bancorp has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, County Bancorp has a beta of 0.25, indicating that its stock price is 75% less volatile than the S&P 500.

Summary

Midland States Bancorp beats County Bancorp on 9 of the 17 factors compared between the two stocks.

Midland States Bancorp Company Profile

Midland States Bancorp, Inc. operates as a financial holding company for Midland States Bank that provides banking and financial products and services to individuals, businesses, municipalities, and other entities. The company's deposit products include checking, savings, money market, and sweep accounts, as well as certificates of deposits, noninterest-bearing and interest-bearing demand deposits, and time deposits. Its loan portfolio comprises commercial lending products consisting of owner occupied commercial real estate loans, commercial real estate investment loans, real estate construction loans, multifamily loans, and loans to purchase farmland and finance agricultural production; commercial loans, such as business term loans, equipment financing, and lines of credit; consumer installment loans, including loans to purchase cars, boats, other recreational vehicles, and appliances, as well as other home improvement projects; and residential first and second mortgage loans, and home equity lines of credit. The company also engages in the origination of residential first-and second-lien mortgage loans for sale in the secondary market. In addition, it provides trust and wealth management products and services, including financial and estate planning, trustee and custodial services, investment management, tax and insurance planning, business planning, corporate retirement plan consulting and administration, and retail brokerage services. Further, the company offers merchant services; and commercial equipment leasing services, as well as originates commercial mortgage loans for multifamily and healthcare facilities. As of December 31, 2017, it operated 61 banking offices in 43 communities within its market areas, such as Illinois, and the St. Louis and Denver metropolitan areas. The company was founded in 1881 and is headquartered in Effingham, Illinois.

County Bancorp Company Profile

County Bancorp, Inc. operates as the bank holding company for Investors Community Bank that provides a range of banking and related financial services to individuals, businesses, and industries in northeastern and central Wisconsin. The company accepts demand interest bearing and noninterest bearing, money market deposit, NOW, checking, and savings accounts, as well as time deposits. It also offers agricultural loans; commercial and industrial loans, such as conventional term loans, and lines of credit and government guaranteed loans; commercial real estate mortgage loans, including multi-family investment properties and investment retail, office, mini-storage, and warehouse loans; and consumer, personal, and residential real estate loans on a collateralized and non-collateralized basis. In addition, the company provides mobile and Internet banking, remote merchant deposit capture, cash management, safe deposit, direct deposit, notary, night depository, cashier's check, and drive-in teller services, as well as credit, debit, and ATM cards; and crop insurance and milk margin products. It operates full-service branches in Manitowoc, Appleton, Green Bay, and Stevens Point; and loan production offices in Darlington, Eau Claire, Fond du Lac, and Sheboygan. County Bancorp, Inc. was founded in 1996 and is headquartered in Manitowoc, Wisconsin.

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