First National of Nebraska (OTCMKTS:FINN) and Meridian Bancorp (NASDAQ:EBSB) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.
This table compares First National of Nebraska and Meridian Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|First National of Nebraska||N/A||N/A||N/A|
Insider & Institutional Ownership
3.5% of First National of Nebraska shares are owned by institutional investors. Comparatively, 67.0% of Meridian Bancorp shares are owned by institutional investors. 41.7% of First National of Nebraska shares are owned by company insiders. Comparatively, 5.1% of Meridian Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Valuation & Earnings
This table compares First National of Nebraska and Meridian Bancorp’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|First National of Nebraska||N/A||N/A||N/A||N/A||N/A|
|Meridian Bancorp||$279.42 million||1.94||$67.00 million||$1.30||7.96|
Meridian Bancorp has higher revenue and earnings than First National of Nebraska.
Risk & Volatility
First National of Nebraska has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500. Comparatively, Meridian Bancorp has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.
First National of Nebraska pays an annual dividend of $120.00 per share and has a dividend yield of 1.2%. Meridian Bancorp pays an annual dividend of $0.32 per share and has a dividend yield of 3.1%. Meridian Bancorp pays out 24.6% of its earnings in the form of a dividend. Meridian Bancorp has increased its dividend for 1 consecutive years. Meridian Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a summary of current ratings and recommmendations for First National of Nebraska and Meridian Bancorp, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|First National of Nebraska||0||0||0||0||N/A|
Meridian Bancorp has a consensus price target of $15.00, indicating a potential upside of 44.93%. Given Meridian Bancorp’s higher possible upside, analysts plainly believe Meridian Bancorp is more favorable than First National of Nebraska.
Meridian Bancorp beats First National of Nebraska on 10 of the 12 factors compared between the two stocks.
First National of Nebraska Company Profile
First National of Nebraska, Inc. operates as a holding company for First National Bank of Omaha. The Bank engages in consumer, commercial, real estate, and agricultural lending and retail deposit activities in Nebraska, Iowa, Kansas, South Dakota, Colorado, Texas, Wisconsin, Minnesota, and other nearby states. It offers demand deposits, certificates of deposits, individual retirement accounts, and other products. The Bank also provides trust services, safe deposit boxes, cash management, and investment services. It makes loans, such as individual consumer loans, agricultural, real estate, and commercial loans. The company also has subsidiaries, which provide merchant credit card processing and other services. In February, the Bank and TROY Systems, a division of TROY Group, entered into an agreement creating a payment solutions partnership. Under the agreement, the Bank would serve as a reseller for TROY Systems’ entire eCheck SecureÂ product line and TROY would use the Bank as a sponsoring bank for its ACH processing operation. First National of Nebraska, Inc. operates as a subsidiary of Lauritzen Corporation
Meridian Bancorp Company Profile
Meridian Bancorp, Inc. operates as the holding company for East Boston Savings Bank that provides various financial products and services for individuals and businesses primarily in Suffolk, Norfolk, Middlesex and Essex Counties, Massachusetts. The company accepts various deposit products, including non-interest-bearing demand deposits, such as checking accounts; interest-bearing demand accounts comprising NOW and money market accounts; savings accounts; and certificates of deposits, as well as commercial checking accounts. Its loan portfolio includes commercial real estate loans, which are secured by properties used for business purposes, such as office buildings, industrial facilities, and retail facilities; one- to four-family residential loans comprising mortgage loans that enable borrowers to purchase or refinance existing homes; multi-family real estate loans; construction loans; commercial and industrial loans; home equity lines of credit; and consumer loans that include automobile loans, loans secured by savings or certificate accounts, credit builders, and annuity and overdraft loans. In addition, the company offers non-deposit financial products, which comprise mutual funds, annuities, stocks, and bonds through a third-party broker-dealer; and long-term care insurance products. Further, it is also involved in the securities transactions business; and holding foreclosed real estate properties. The company operates 37 full-service locations, as well as 1 mobile branch and 3 loan centers. Meridian Bancorp, Inc. was founded in 1848 and is headquartered in Peabody, Massachusetts.
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