Monarch Financial (NASDAQ: MNRK) is one of 280 public companies in the “Banks” industry, but how does it compare to its rivals? We will compare Monarch Financial to related companies based on the strength of its profitability, analyst recommendations, institutional ownership, valuation, risk, dividends and earnings.

Dividends

Monarch Financial pays an annual dividend of $0.36 per share and has a dividend yield of 1.9%. Monarch Financial pays out 28.6% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 1.9% and pay out 34.3% of their earnings in the form of a dividend. Monarch Financial is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

53.6% of shares of all “Banks” companies are held by institutional investors. 9.7% of shares of all “Banks” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Monarch Financial and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Monarch Financial N/A N/A 14.67
Monarch Financial Competitors $5.90 billion $890.97 million 79.52

Monarch Financial’s rivals have higher revenue and earnings than Monarch Financial. Monarch Financial is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of current recommendations for Monarch Financial and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Monarch Financial 0 0 0 0 N/A
Monarch Financial Competitors 2130 8418 8398 327 2.36

As a group, “Banks” companies have a potential upside of 3.36%. Given Monarch Financial’s rivals higher probable upside, analysts clearly believe Monarch Financial has less favorable growth aspects than its rivals.

Risk & Volatility

Monarch Financial has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500. Comparatively, Monarch Financial’s rivals have a beta of 0.83, suggesting that their average stock price is 17% less volatile than the S&P 500.

Profitability

This table compares Monarch Financial and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Monarch Financial 12.93% 13.64% 1.39%
Monarch Financial Competitors 18.38% 8.24% 0.92%

Summary

Monarch Financial rivals beat Monarch Financial on 6 of the 10 factors compared.

Monarch Financial Company Profile

Monarch Financial Holdings, Inc. (Monarch) is a Virginia-chartered bank holding company. The Company is engaged in commercial and retail banking; investment and insurance sales, and mortgage origination and brokerage. The Company conducts its operations through its subsidiary, Monarch Bank (the Bank), and its two subsidiaries, Monarch Investment, LLC and Monarch Capital, LLC. The Company operates through two segments: community banking (banking) and retail mortgage banking services (mortgage banking). The Company’s community banking segment involves making loans to and generating deposits from individuals and businesses. Monarch’s mortgage banking services consist of originating residential loans and subsequently selling them to investors. Monarch also does business in various markets, such as OBX Bank, Monarch Bank Private Wealth, Monarch Mortgage and under various names through joint ventures with other partners.

Receive News & Ratings for Monarch Financial Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Monarch Financial and related companies with MarketBeat.com's FREE daily email newsletter.