Reviewing Avidia Bancorp (NYSE:AVBC) and M&T Bank (NYSE:MTB)

M&T Bank (NYSE:MTB) and Avidia Bancorp (NYSE:AVBC) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.

Analyst Ratings

This is a breakdown of current recommendations and price targets for M&T Bank and Avidia Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
M&T Bank	2	13	8	0	2.26
Avidia Bancorp	1	1	1	0	2.00

M&T Bank presently has a consensus target price of $244.89, indicating a potential upside of 10.62%. Avidia Bancorp has a consensus target price of $26.00, indicating a potential upside of 12.07%. Given Avidia Bancorp’s higher probable upside, analysts clearly believe Avidia Bancorp is more favorable than M&T Bank.

Earnings and Valuation

This table compares M&T Bank and Avidia Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
M&T Bank	N/A	N/A	N/A	$19.16	11.55
Avidia Bancorp	$114.34 million	4.05	$29.36 million	$1.47	15.78

Avidia Bancorp has higher revenue and earnings than M&T Bank. M&T Bank is trading at a lower price-to-earnings ratio than Avidia Bancorp, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares M&T Bank and Avidia Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
M&T Bank	N/A	N/A	N/A
Avidia Bancorp	N/A	N/A	N/A

Institutional & Insider Ownership

84.7% of M&T Bank shares are owned by institutional investors. 0.4% of M&T Bank shares are owned by company insiders. Comparatively, 3.4% of Avidia Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

M&T Bank beats Avidia Bancorp on 4 of the 7 factors compared between the two stocks.

About M&T Bank

M&T Bank Corp. operates as a bank holding company, which engages in the provision of retail and commercial banking, trust, wealth management, and investment services. It operates through the following segments: Commercial Bank, Retail Bank, Institutional Services and Wealth Management, and All Other. The Commercial Bank segment offers a wide range of credit products and banking services to middle-market and large commercial customers, mainly within the markets served by the company. The Retail Bank segment refers to the services to consumers and small businesses through the company’s branch network and several other delivery channels such as telephone banking, internet banking, and ATMs. The Institutional Services and Wealth Management segment relates to helping high net worth individuals, institutions, and families grow, preserve, and transfer wealth. The All Other segment reflects other activities of the company that are not directly attributable to the reported segments. The company was founded on August 30, 1856 and is headquartered in Buffalo, NY.

About Avidia Bancorp

Avidia Bancorp Inc. is a chartered stock savings bank. It operates full-service banking offices principally in western Middlesex County and eastern Worcester County, in Massachusetts. Avidia Bancorp Inc. is based in HUDSON, Mass.