RCQ (NASDAQ:QCRH – get rating) and Midland States Bancorp (NASDAQ:MSBI – get rating) are both small-cap financial companies, but which is the better deal? We will compare the two businesses based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership, and dividends.
This table compares the net margins, return on equity, and return on assets of QCR and Midland States Bancorp.
|net margins||Return on equity||Return on assets|
|Midland States Bancorp||26.88%||13.04%||1.21%|
Institutional and internal property
69.5% of QCR shares are held by institutional investors. Comparatively, 58.5% of Midland States Bancorp shares are held by institutional investors. 3.8% of QCR shares are held by insiders of the company. Comparatively, 5.8% of Midland States Bancorp’s shares are held by insiders of the company. Strong institutional ownership is an indication that endowments, big money managers and hedge funds believe a stock will outperform the market over the long term.
QCR pays an annual dividend of $0.24 per share and has a dividend yield of 0.4%. Midland States Bancorp pays an annual dividend of $1.16 per share and has a dividend yield of 4.8%. QCR pays 3.6% of its earnings as a dividend. Midland States Bancorp pays 31.5% of its earnings as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for years to come. Midland States Bancorp has increased its dividend for 6 consecutive years. Midland States Bancorp is clearly the best dividend stock, given its higher yield and longer history of dividend growth.
Valuation and Earnings
This table compares the revenue, earnings per share (EPS), and valuation of QCR and Midland States Bancorp.
|Gross income||Price/Sales Ratio||Net income||earnings per share||Rate of earnings on price|
|QCR||$300.58 million||3.18||$98.90 million||$6.58||8.23|
|Midland States Bancorp||$307.72 million||1.74||$81.32 million||$3.68||6.61|
QCR has higher earnings but lower revenue than Midland States Bancorp. Midland States Bancorp trades at a lower price-to-earnings ratio than QCR, indicating that it is currently the more affordable of the two stocks.
This is a summary of QCR and Midland States Bancorp’s current ratings, provided by MarketBeat.com.
|sales ratings||retention ratings||Buy grades||Strong purchase ratings||Rating Score|
|Midland States Bancorp||0||1||0||0||2.00|
QCR currently has a consensus price target of $71.50, indicating 32.02% upside potential. Midland States Bancorp has a consensus price target of $28.00, indicating 15.08% upside potential. Given QCR’s stronger consensus rating and possible higher upside, equity analysts clearly believe QCR is more favorable than Midland States Bancorp.
Volatility and risk
QCR has a beta of 1.02, meaning its share price is 2% more volatile than the S&P 500. Comparatively, Midland States Bancorp has a beta of 0.88, meaning its share price is 2% more volatile than the S&P 500. stock is 12% less volatile than the S&P 500.
QCR outperforms Midland States Bancorp in 13 of 17 factors compared between the two stocks.
About QCR (get rating)
QCR Holdings, Inc., a multi-bank holding company, provides consumer and commercial banking services, and trust and asset management services. Its deposit products include non-interest bearing demand deposits, interest bearing demand deposits, time deposits and intermediation deposits. The company also offers various commercial and retail loan/lease and investment services to corporations, partnerships, individuals and government agencies. Its loan portfolio comprises loans to small and medium enterprises; business loans, including lines of credit for working capital and operating purposes; term loans for the acquisition of facilities, equipment and other purposes; commercial and residential real estate loans; and installment and other consumer loans, such as home improvement, home equity loans, motor vehicle and exclusive loans, as well as small personal lines of credit. In addition, the company is engaged in the leasing of machinery and equipment to commercial and industrial companies under lease contracts with direct financing; and issuance of preferred fiduciary securities. Serves the Quad Cities, Cedar Rapids, Cedar Valley, Des Moines/Ankeny, and Springfield communities. The company was founded in 1993 and is headquartered in Moline, Illinois.
About Midland States Bancorp (get rating)
Midland States Bancorp, Inc. operates as a financial holding company for Midland States Bank offering a variety of banking products and services to individuals, businesses, municipalities and other entities. It operates through the Banking, Wealth Management and Others segments. The company accepts various deposits such as checking, savings, money market, and sweep accounts, as well as certificates of deposit. It also offers term loans to purchase capital goods; lines of credit for working capital and operating purposes; commercial real estate loans for owner-occupied and non-owner-occupied commercial properties, as well as loans for agricultural land; loans for construction and land development developers of commercial real estate investment properties, residential developments, individual clients for the construction of single-family homes, as well as for the construction of owner-user properties; and residential real estate loans and home equity lines of credit. In addition, the company offers consumer installment loans for the purchase of cars, boats and other recreational vehicles, as well as for the purchase of major appliances and other home improvement projects; commercial equipment leasing; and trust and wealth management products and services, including financial and estate planning, trust and custody services, investment management, insurance and tax planning, business planning, corporate retirement plan consulting and administration, and retail brokerage services . As of December 31, 2021, it operated 52 full-service bank offices. The company was founded in 1881 and is headquartered in Effingham, Illinois.
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