MB Financial (NASDAQ: MBFI) and 1st Century Bancshares (NASDAQ:FCTY) are both financials companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, valuation, earnings, risk and dividends.

Analyst Recommendations

This is a summary of current ratings and price targets for MB Financial and 1st Century Bancshares, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
MB Financial 0 5 2 0 2.29
1st Century Bancshares 0 0 0 0 N/A

MB Financial currently has a consensus price target of $49.00, indicating a potential upside of 4.17%. Given MB Financial’s higher possible upside, analysts clearly believe MB Financial is more favorable than 1st Century Bancshares.

Earnings and Valuation

This table compares MB Financial and 1st Century Bancshares’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
MB Financial $932.08 million 4.23 $174.13 million $2.35 20.02
1st Century Bancshares N/A N/A N/A $0.25 44.88

MB Financial has higher revenue and earnings than 1st Century Bancshares. MB Financial is trading at a lower price-to-earnings ratio than 1st Century Bancshares, indicating that it is currently the more affordable of the two stocks.

Dividends

MB Financial pays an annual dividend of $0.84 per share and has a dividend yield of 1.8%. 1st Century Bancshares does not pay a dividend. MB Financial pays out 35.7% of its earnings in the form of a dividend.

Institutional & Insider Ownership

76.5% of MB Financial shares are owned by institutional investors. 7.1% of MB Financial shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares MB Financial and 1st Century Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
MB Financial 20.21% 8.40% 1.08%
1st Century Bancshares 3.91% 1.67% 0.15%

Summary

MB Financial beats 1st Century Bancshares on 10 of the 12 factors compared between the two stocks.

MB Financial Company Profile

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.

1st Century Bancshares Company Profile

1st Century Bancshares, Inc. is the bank holding company for 1st Century Bank, National Association (the Bank). The Bank is a full service commercial bank. The Bank’s primary focus is relationship banking to family and middle market businesses, professional service firms, and high net worth individuals, real estate investors and entrepreneurs. It offers various loan products, including business and personal lines of credit and term loans; tenant improvement and equipment financing; bridge and specific purpose loans; commercial, industrial, multi-family residential real estate lending; personal home equity loans and lines of credit, and credit cards for business and personal use. Its deposit products include business checking, money market and certificates of deposit; personal checking, money market and certificates of deposits; attorney-client trust accounts, trust accounts, and cash management. Its loan and deposit activities are based in the Los Angeles metropolitan area.

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