MB Financial (NASDAQ: MBFI) is one of 206 publicly-traded companies in the “Commercial Banks” industry, but how does it contrast to its competitors? We will compare MB Financial to similar businesses based on the strength of its earnings, valuation, dividends, risk, institutional ownership, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings for MB Financial and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MB Financial 0 5 3 0 2.38
MB Financial Competitors 847 3937 2855 114 2.29

MB Financial currently has a consensus price target of $47.38, indicating a potential upside of 10.66%. As a group, “Commercial Banks” companies have a potential upside of 3.35%. Given MB Financial’s stronger consensus rating and higher probable upside, research analysts clearly believe MB Financial is more favorable than its competitors.

Volatility & Risk

MB Financial has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500. Comparatively, MB Financial’s competitors have a beta of 0.73, meaning that their average stock price is 27% less volatile than the S&P 500.

Earnings and Valuation

This table compares MB Financial and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
MB Financial $928.92 million N/A 19.55
MB Financial Competitors N/A N/A 24.52

MB Financial is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares MB Financial and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MB Financial 19.12% 7.99% 1.02%
MB Financial Competitors 19.73% 8.36% 0.88%

Dividends

MB Financial pays an annual dividend of $0.84 per share and has a dividend yield of 2.0%. MB Financial pays out 38.4% of its earnings in the form of a dividend. As a group, “Commercial Banks” companies pay a dividend yield of 1.9% and pay out 35.6% of their earnings in the form of a dividend.

Institutional and Insider Ownership

74.7% of MB Financial shares are owned by institutional investors. Comparatively, 46.7% of shares of all “Commercial Banks” companies are owned by institutional investors. 7.1% of MB Financial shares are owned by insiders. Comparatively, 11.7% of shares of all “Commercial Banks” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

MB Financial beats its competitors on 8 of the 14 factors compared.

About MB Financial

MB Financial, Inc. (MB Financial) is a financial holding company. The Company’s segments include banking, leasing and mortgage banking. As of December 31, 2016, the Company’s primary market was the Chicago metropolitan area, in which the Company operated 95 banking offices through its bank subsidiary, MB Financial Bank, N.A. (MB Financial Bank). Through MB Financial Bank, the Company offers a range of financial services to small and middle market businesses, and individuals in the markets that the Company serves. MB Financial Bank’s subsidiaries include LaSalle Systems Leasing, Inc. (LaSalle), Celtic Leasing Corp. (Celtic) and MB Equipment Finance, LLC, (MB Equipment Finance). MB Financial Bank also has a majority owned subsidiary with operating activities, Cedar Hill Associates, LLC (Cedar Hill). The Company operates four primary lines of business within its banking segment: commercial banking, lease banking, retail banking and wealth management.

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