Critical Comparison: Mid Penn Bancorp (NASDAQ:MPB) and First National Bank Alaska (OTCMKTS:FBAK)

Mid Penn Bancorp (NASDAQ:MPB) and First National Bank Alaska (OTCMKTS:FBAK) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Analyst Recommendations

This is a summary of current recommendations for Mid Penn Bancorp and First National Bank Alaska, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mid Penn Bancorp	0	0	2	0	3.00
First National Bank Alaska	0	0	0	0	0.00

Mid Penn Bancorp presently has a consensus price target of $36.00, indicating a potential upside of 33.68%. Given Mid Penn Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe Mid Penn Bancorp is more favorable than First National Bank Alaska.

Institutional & Insider Ownership

43.1% of Mid Penn Bancorp shares are held by institutional investors. 10.7% of Mid Penn 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.

Risk & Volatility

Mid Penn Bancorp has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500. Comparatively, First National Bank Alaska has a beta of 0.32, suggesting that its stock price is 68% less volatile than the S&P 500.

Dividends

Mid Penn Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 3.0%. First National Bank Alaska pays an annual dividend of $16.00 per share and has a dividend yield of 6.8%. Mid Penn Bancorp pays out 27.6% of its earnings in the form of a dividend. First National Bank Alaska pays out 75.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Mid Penn Bancorp and First National Bank Alaska’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mid Penn Bancorp	15.99%	8.43%	0.87%
First National Bank Alaska	N/A	13.70%	1.11%

Earnings and Valuation

This table compares Mid Penn Bancorp and First National Bank Alaska”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mid Penn Bancorp	$176.80 million	2.95	$49.44 million	$2.90	9.29
First National Bank Alaska	$87.73 million	8.48	$60.01 million	$21.17	11.10

First National Bank Alaska has lower revenue, but higher earnings than Mid Penn Bancorp. Mid Penn Bancorp is trading at a lower price-to-earnings ratio than First National Bank Alaska, indicating that it is currently the more affordable of the two stocks.

Summary

Mid Penn Bancorp beats First National Bank Alaska on 9 of the 16 factors compared between the two stocks.

About Mid Penn Bancorp

Mid Penn Bancorp, Inc. operates as the bank holding company for Mid Penn Bank that provides commercial banking services to individuals, partnerships, non-profit organizations, and corporations. The company offers various time and demand deposit products, including checking accounts, savings accounts, clubs, money market deposit accounts, certificates of deposit, and individual retirement accounts. It also provides a range of loan products comprising mortgage and home equity loans, secured and unsecured commercial and consumer loans, lines of credit, construction financing, farm loans, community development loans, loans to non-profit entities, and local government loans. In addition, the company offers trust, retail investment, wealth management, and insurance services; and provides online banking, telephone banking, cash management, and automated teller services, as well as safe deposit boxes. The company was founded in 1868 and is headquartered in Harrisburg, Pennsylvania.

About First National Bank Alaska

First National Bank Alaska, a commercial bank, provides various banking products and services for business, industry, and individual customers primarily in Alaska. The company offers savings and checking accounts; money market deposits; safe deposit services; certificates of deposit; individual retirement accounts; and personal, home equity, and construction loans, as well as loans for stability and growth. It also provides investment, treasury, trust, and wealth management services; and escrow and contract collection, and bankcard services. In addition, the company offers debit and credit cards, online and mobile banking, fraud prevention, and convenience banking services. First National Bank Alaska was founded in 1922 and is headquartered in Anchorage, Alaska.