Bank of N.T. Butterfield & Son (OTCMKTS: MBNKF) and Metro Bank (OTCMKTS:MBNKF) are both mid-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, risk and analyst recommendations.

Risk and Volatility

Bank of N.T. Butterfield & Son has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500. Comparatively, Metro Bank has a beta of 0.49, meaning that its share price is 51% less volatile than the S&P 500.

Dividends

Bank of N.T. Butterfield & Son pays an annual dividend of $0.70 per share and has a dividend yield of 1.3%. Metro Bank does not pay a dividend. Bank of N.T. Butterfield & Son pays out 24.5% of its earnings in the form of a dividend.

Profitability

This table compares Bank of N.T. Butterfield & Son and Metro Bank’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bank of N.T. Butterfield & Son 35.22% 21.83% 1.66%
Metro Bank N/A N/A N/A

Valuation and Earnings

This table compares Bank of N.T. Butterfield & Son and Metro Bank’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bank of N.T. Butterfield & Son $468.15 million 6.15 $153.25 million $2.86 18.41
Metro Bank $344.86 million 9.88 N/A N/A N/A

Bank of N.T. Butterfield & Son has higher revenue and earnings than Metro Bank.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Bank of N.T. Butterfield & Son and Metro Bank, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bank of N.T. Butterfield & Son 0 2 4 0 2.67
Metro Bank 0 2 0 0 2.00

Bank of N.T. Butterfield & Son currently has a consensus price target of $52.20, suggesting a potential downside of 0.84%. Given Bank of N.T. Butterfield & Son’s stronger consensus rating and higher possible upside, research analysts plainly believe Bank of N.T. Butterfield & Son is more favorable than Metro Bank.

Institutional and Insider Ownership

72.5% of Bank of N.T. Butterfield & Son shares are held by institutional investors. Comparatively, 4.3% of Metro Bank shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Bank of N.T. Butterfield & Son beats Metro Bank on 10 of the 12 factors compared between the two stocks.

Bank of N.T. Butterfield & Son Company Profile

The Bank of N.T. Butterfield & Son Limited provides a range of community, commercial, and private banking services to individuals and small to medium-sized businesses. It accepts retail and corporate checking, savings, term, and non-interest bearing deposits, as well as certificates of deposits. The company's lending portfolio includes residential mortgage lending, automobile financing, consumer financing, credit cards, overdraft facilities, commercial real estate lending, and commercial and industrial loans. In addition, it offers investment products and services; and cash and liquidity management, foreign exchange, custody administration, and settlement services. Further, the company provides personal and property/auto insurance products; letters of credit; and cash management, payroll, remote banking, money market, advisory, brokerage, trust, estate, company management, private banking, administered bank services, fiduciary, and ancillary services. Additionally, it offers debit cards; automated teller machines (ATMs); personal and business deposit, merchant acquiring, and mobile/online banking services. The company operates through offices in the Cayman Islands, Guernsey, the United Kingdom, The Bahamas, and Switzerland, as well as through four branch locations in Bermuda and three branch locations in the Cayman Islands. The Bank of N.T. Butterfield & Son Limited was founded in 1858 and is headquartered in Hamilton, Bermuda.

Metro Bank Company Profile

Metro Bank PLC, together with its subsidiaries, provides retail and corporate banking services in the United Kingdom. The company offers personal banking products and services, including current and savings accounts; residential mortgages; credit cards and personal loans; and safe deposit box services. It also provides business banking products and services comprising deposit accounts, including business instant access, fixed term, client monies, and business tracker notice accounts; commercial loans, working capital, business credit cards, asset financing, invoice financing, and portfolio buy-to-let; business credit cards, cash management services; and partnership banking services. Metro Bank PLC was incorporated in 2007 and is headquartered in London, the United Kingdom.

Receive News & Ratings for Bank of N.T. Butterfield & Son Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Bank of N.T. Butterfield & Son and related companies with MarketBeat.com's FREE daily email newsletter.