Equitable Financial (OTCMKTS:EQFN) versus MidWestOne Financial Group (NASDAQ:MOFG) Head to Head Comparison

Equitable Financial (OTCMKTS:EQFN) and MidWestOne Financial Group (NASDAQ:MOFG) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, dividends and valuation.

Valuation and Earnings

This table compares Equitable Financial and MidWestOne Financial Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Equitable Financial	$33.95 million	1.13	$3.44 million	$1.31	11.83
MidWestOne Financial Group	$238.84 million	3.29	-$60.29 million	$2.81	13.57

Equitable Financial has higher earnings, but lower revenue than MidWestOne Financial Group. Equitable Financial is trading at a lower price-to-earnings ratio than MidWestOne Financial Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Equitable Financial and MidWestOne Financial Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Equitable Financial	0	0	0	0	0.00
MidWestOne Financial Group	0	5	1	0	2.17

MidWestOne Financial Group has a consensus price target of $38.17, suggesting a potential upside of 0.10%. Given MidWestOne Financial Group’s stronger consensus rating and higher probable upside, analysts clearly believe MidWestOne Financial Group is more favorable than Equitable Financial.

Insider and Institutional Ownership

7.2% of Equitable Financial shares are held by institutional investors. Comparatively, 65.4% of MidWestOne Financial Group shares are held by institutional investors. 11.3% of Equitable Financial shares are held by insiders. Comparatively, 2.5% of MidWestOne Financial Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Equitable Financial and MidWestOne Financial Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Equitable Financial	9.70%	6.57%	0.64%
MidWestOne Financial Group	16.66%	10.35%	0.96%

Volatility & Risk

Equitable Financial has a beta of 0.14, suggesting that its share price is 86% less volatile than the S&P 500. Comparatively, MidWestOne Financial Group has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.

Summary

MidWestOne Financial Group beats Equitable Financial on 12 of the 14 factors compared between the two stocks.

About Equitable Financial

Equitable Financial Corp. operates as the holding company for Equitable Bank that provides various banking products and services in Nebraska, the United States. The company offers checking and savings accounts; recorder checks; online and mobile banking; remote deposit capture; voice banking; credit card processing; debit and gift cards; and safe deposit boxes. It also provides home, home equity, auto, personal, real estate and construction, operating lines of credit, small business administration, and agricultural loans, as well as equipment financing. In addition, the company offers foreign currency and exchanges; financial planning; wealth management; investment advisory; and retirement services. It operates through branches located in Grand Island, North Platte, and Omaha. The company was founded in 1882 and is headquartered in Grand Island, Nebraska.

About MidWestOne Financial Group

MidWestOne Financial Group, Inc. operates as the bank holding company for MidWestOne Bank that provides commercial and retail banking products and services to individuals, businesses, governmental units, and institutional customers. It offers range of deposit products, including noninterest bearing and interest bearing demand deposits, savings, money market, and time deposits accounts. The company also provides commercial, real estate, agricultural, credit card, and consumer loans; and financing arrangements, such as brokered deposits, term debt, subordinated debt, and equity. In addition, it offers trust and investment services comprising administering estates, trusts, and conservatorships; property and farm management, investment advisory, retail securities brokerage, financial planning, and custodial services; and licensed brokers services. Further, the company provides online and mobile banking, debit cards, automated teller machines, and safe deposit boxes. MidWestOne Financial Group, Inc. was founded in 1934 and is headquartered in Iowa City, Iowa.