Macatawa Bank (NASDAQ: MCBC) is one of 200 publicly-traded companies in the “Commercial Banks” industry, but how does it contrast to its peers? We will compare Macatawa Bank to related businesses based on the strength of its earnings, analyst recommendations, valuation, risk, profitability, institutional ownership and dividends.

Dividends

Macatawa Bank pays an annual dividend of $0.20 per share and has a dividend yield of 2.0%. Macatawa Bank pays out 37.7% 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.

Insider and Institutional Ownership

28.7% of Macatawa Bank shares are held by institutional investors. Comparatively, 47.0% of shares of all “Commercial Banks” companies are held by institutional investors. 8.7% of Macatawa Bank shares are held by insiders. Comparatively, 11.8% of shares of all “Commercial Banks” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Macatawa Bank and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Macatawa Bank $71.57 million $15.95 million 18.96
Macatawa Bank Competitors $338.81 million $71.86 million 19.35

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

Analyst Ratings

This is a breakdown of current ratings for Macatawa Bank and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Macatawa Bank 0 1 0 0 2.00
Macatawa Bank Competitors 388 2936 2352 68 2.37

Macatawa Bank currently has a consensus price target of $10.00, indicating a potential downside of 0.50%. As a group, “Commercial Banks” companies have a potential upside of 3.86%. Given Macatawa Bank’s peers stronger consensus rating and higher probable upside, analysts clearly believe Macatawa Bank has less favorable growth aspects than its peers.

Profitability

This table compares Macatawa Bank and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Macatawa Bank 24.64% 10.84% 1.03%
Macatawa Bank Competitors 20.38% 8.68% 0.92%

Risk & Volatility

Macatawa Bank has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500. Comparatively, Macatawa Bank’s peers have a beta of 0.75, suggesting that their average share price is 25% less volatile than the S&P 500.

Summary

Macatawa Bank peers beat Macatawa Bank on 10 of the 15 factors compared.

About Macatawa Bank

Macatawa Bank Corporation is a bank holding company. The Company, through its subsidiary, Macatawa Bank (the Bank), offers a range of commercial and personal banking services, including checking, savings and certificates of deposit accounts, cash management, safe deposit boxes, trust services and commercial, mortgage and consumer loans. The Bank is a Michigan chartered bank with depository accounts insured by the Federal Deposit Insurance Corporation. Its other services include automated teller machines (ATMs), Internet banking, telephone banking and debit cards. The Bank provides various brokerage services, including discount brokerage through Infinex, personal financial planning and consultation regarding mutual funds. As of December 31, 2016, the Bank operated 26 full service branch offices providing a range of commercial and consumer banking and trust services in Kent County, Ottawa County, and northern Allegan County, Michigan.

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