Monarch Financial (NASDAQ: MNRK) is one of 312 public companies in the “Banks” industry, but how does it contrast to its competitors? We will compare Monarch Financial to related companies based on the strength of its risk, valuation, analyst recommendations, profitability, dividends, institutional ownership and earnings.

Profitability

This table compares Monarch Financial and its competitors’ 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 17.66% 8.37% 0.94%

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 36.6% of their earnings in the form of a dividend. Monarch Financial is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Risk and Volatility

Monarch Financial has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500. Comparatively, Monarch Financial’s competitors have a beta of 0.80, meaning that their average stock price is 20% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Monarch Financial and its competitors, as provided 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 2244 8394 8180 372 2.35

As a group, “Banks” companies have a potential downside of 5.58%. Given Monarch Financial’s competitors higher probable upside, analysts plainly believe Monarch Financial has less favorable growth aspects than its competitors.

Insider & Institutional Ownership

52.0% of shares of all “Banks” companies are owned by institutional investors. 10.4% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Monarch Financial and its competitors 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 $5.61 billion $755.73 million 382.20

Monarch Financial’s competitors have higher revenue and earnings than Monarch Financial. Monarch 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.

Summary

Monarch Financial competitors beat Monarch Financial on 7 of the 11 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.

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