Lakeland Bancorp (NASDAQ: LBAI – Get an assessment) and MainStreet Bancshares (NASDAQ: MNSB – Get an assessment) are both small cap finance companies, but which is the better investment? We’ll compare the two companies based on institutional ownership strength, dividends, earnings, risk, analyst recommendations, valuation and profitability.
This is a summary of recent ratings and recommendations for Lakeland Bancorp and MainStreet Bancshares, as provided by MarketBeat.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|MainStreet Bancshares||0||0||0||0||N / A|
Lakeland Bancorp currently has a consensus target price of $17.00, suggesting a potential upside of 5.92%. Given Lakeland Bancorp’s likely higher upside, stock analysts clearly believe that Lakeland Bancorp is more favorable than MainStreet Bancshares.
Valuation and benefits
This chart compares revenue, earnings per share (EPS), and valuation of Lakeland Bancorp and MainStreet Bancshares.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|Lakeland Bancorp||$279.68 million||3.72||$95.04 million||$1.55||10:35 a.m.|
|MainStreet Bancshares||$70.31 million||2.60||$22.17 million||$2.47||9.78|
Lakeland Bancorp has higher revenue and profit than MainStreet Bancshares. MainStreet Bancshares trades at a lower price-to-earnings ratio than Lakeland Bancorp, indicating that it is currently the more affordable of the two stocks.
This table compares the net margins, return on equity and return on assets of Lakeland Bancorp and MainStreet Bancshares.
|Net margins||Return on equity||return on assets|
Lakeland Bancorp pays an annual dividend of $0.58 per share and has a dividend yield of 3.6%. MainStreet Bancshares pays an annual dividend of $0.20 per share and has a dividend yield of 0.8%. Lakeland Bancorp pays 37.4% of its profits as a dividend. MainStreet Bancshares pays 8.1% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Lakeland Bancorp has increased its dividend for 13 consecutive years. Lakeland Bancorp is clearly the better dividend-paying stock, given its higher yield and longer track record of dividend growth.
Risk and Volatility
Lakeland Bancorp has a beta of 0.87, suggesting its stock price is 13% less volatile than the S&P 500. By comparison, MainStreet Bancshares has a beta of 0.44, suggesting its stock price is 56% less volatile than the S&P 500.
Institutional and Insider Ownership
49.3% of Lakeland Bancorp shares are held by institutional investors. Comparatively, 41.9% of MainStreet Bancshares shares are held by institutional investors. 4.7% of Lakeland Bancorp shares are held by insiders. By comparison, 7.8% of MainStreet Bancshares shares are held by insiders. Strong institutional ownership indicates that large money managers, endowments, and hedge funds believe a company is poised for long-term growth.
Lakeland Bancorp beats MainStreet Bancshares on 10 out of 16 factors compared between the two stocks.
About Lakeland Bancorp
Lakeland Bancorp, Inc. operates as a banking holding company for Lakeland Bank which offers various banking products and services to individuals and small and medium businesses. The Company provides commercial banking services, including savings, money market and term accounts, as well as demand deposits. It is also involved in lending services, including commercial real estate loans, commercial and industrial loans, short and medium term loans, lines of credit, letters of credit, inventory and accounts receivable financing, home construction loans, residential mortgages, small business loans administration (SBA) and merchant credit card services; financing solutions for small and medium-sized enterprises; online banking, mobile banking and wire transfer services; and cash management services, such as remote deposit capture and overnight repurchase agreements. In addition, it provides consumer banking services, which include checking accounts, savings accounts, interest-bearing checking accounts, money market accounts, certificates of deposit, online banking, secured loans and unsecured, consumer installment loans, mortgages and safe deposit services. . In addition, the company offers investment advisory services for individuals and businesses; and securities brokerage services, including mutual funds and variable annuities, as well as commercial title insurance services and life insurance products. As of December 31, 2021, it operated 48 branches located in Bergen, Essex, Morris, Ocean, Passaic, Somerset, Sussex and Union counties in New Jersey and Highland Mills, New York; operated six regional New Jersey commercial lending centers in Bernardsville, Iselin, Jackson, Montville, Teaneck and Waldwick; and a commercial lending center in New York to serve the Hudson Valley region. The company was incorporated in 1969 and is headquartered in Oak Ridge, New Jersey.
About MainStreet Bancshares
MainStreet Bancshares, Inc. operates as a bank holding company for MainStreet Bank which provides various banking products and services to individuals, small and medium businesses and professional services organizations. The company offers current, NOW, money market, savings and sweep accounts, as well as certificates of deposit; business and consumer verification, interest-bearing verification, business account analysis and other filing services; and cash management, wire transfers, check imaging, remote deposit capture and courier services. It also provides commercial loans, including government contract receivables, plant and equipment, general working capital, contract administration and acquisition loans; commercial real estate, building construction and residential real estate loans; and consumer loans including term loans and overdraft protection, as well as debit and credit cards. In addition, the company offers deposit insurance solutions; remote check deposit; and Internet bill payment, online cash management, and online and mobile banking. As of March 18, 2022, it operated six branches in Herndon, Fairfax, McLean, Leesburg, Clarendon and Washington DC, as well as 55,000 ATMs. MainStreet Bancshares, Inc. was incorporated in 2003 and is headquartered in Fairfax, Virginia.
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