Financial analysis of First Guaranty Bancshares (NASDAQ:FGBI) and Magyar Bancorp (NASDAQ:MGYR)


First Guaranty Bancshares (NASDAQ:FGBI – Get Rating) and Magyar Bancorp (NASDAQ:MGYR – Get Rating) are both small cap financial companies, but which stock is superior? We’ll compare the two companies based on earnings strength, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.

Analyst Notes

This is a summary of the current ratings and price targets for First Guaranty Bancshares and Magyar Bancorp, as reported by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
First Guaranty Bancshares 0 0 0 0 N / A
Magyar Bancorp 0 0 0 0 N / A

Benefits and evaluation

This table compares the gross revenue, earnings per share and valuation of First Guaranty Bancshares and Magyar Bancorp.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
First Guaranty Bancshares $122.68 million 2.51 $27.30 million $2.60 11.04
Magyar Bancorp $31.94 million 2.58 $6.12 million $1.02 11:39

First Guaranty Bancshares has higher revenue and earnings than Magyar Bancorp. First Guaranty Bancshares trades at a lower price-to-earnings ratio than Magyar Bancorp, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares the net margins, return on equity and return on assets of First Guaranty Bancshares and Magyar Bancorp.

Net margins Return on equity return on assets
First Guaranty Bancshares 23.43% 16.05% 1.06%
Magyar Bancorp 21.60% 7.75% 0.83%

Volatility and risk

First Guaranty Bancshares has a beta of 0.38, meaning its stock price is 62% less volatile than the S&P 500. Comparatively, Magyar Bancorp has a beta of 0.21, meaning its stock price is 79 % less volatile than the S&P 500.

Insider and Institutional Ownership

7.3% of First Guaranty Bancshares shares are held by institutional investors. By comparison, 40.3% of Magyar Bancorp’s shares are held by institutional investors. 42.7% of the shares of First Guaranty Bancshares are held by insiders of the company. By comparison, 5.0% of Magyar Bancorp’s shares are held by insiders of the company. Strong institutional ownership indicates that hedge funds, endowments, and large fund managers believe a company is poised for long-term growth.

Dividends

First Guaranty Bancshares pays an annual dividend of $0.64 per share and has a dividend yield of 2.2%. Magyar Bancorp pays an annual dividend of $0.12 per share and has a dividend yield of 1.0%. First Guaranty Bancshares pays 24.6% of its profits as a dividend. Magyar Bancorp pays 11.8% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. First Guaranty Bancshares has increased its dividend for 1 consecutive years. First Guaranty Bancshares is clearly the better dividend-paying stock, given its higher yield and longer history of dividend growth.

Summary

First Guaranty Bancshares beats Magyar Bancorp on 10 out of 14 factors compared between the two stocks.

About First Guaranty Bancshares (Get an evaluation)

First Guaranty Bancshares, Inc. is the holding company of First Guaranty Bank which provides commercial banking services in Louisiana and Texas. It offers various deposit products, including personal and business checking accounts, savings, money market and demand accounts, as well as term deposits to consumers, small businesses and municipalities. The company also provides loans, such as non-agricultural and non-residential loans secured by real estate, commercial and industrial loans, residential loans for one to four families, multi-family loans, construction and development loans. loans, agricultural loans, agricultural land loans, and consumer and other loans to small and medium enterprises, professionals and individuals. In addition, it offers a range of consumer services, including credit cards, mobile deposit capture, safe deposit boxes, official checks, online and mobile banking, ATMs, and online bill payment. line ; provides additional solutions, such as merchant services, remote deposit capture and vault services to business customers; and invests a portion of its assets in securities issued by the United States government and its agencies, state and municipal bonds, corporate debt securities, mutual funds and equity securities, and investments in mortgage-backed securities primarily issued or guaranteed by United Agencies or state government enterprises. The company operates through 36 banking locations primarily located in the market service areas of Hammond, Baton Rouge, Lafayette, Shreveport-Bossier City, Lake Charles, Alexandria, Dallas-Fort Worth-Arlington, Waco, Kentucky and West Virginia. First Guaranty Bancshares, Inc. was founded in 1934 and is headquartered in Hammond, Louisiana.

About Magyar Bancorp (Get an evaluation)

Magyar Bancorp, Inc. operates as a holding company of Magyar Bank which provides various consumer and business banking services to individuals, businesses and non-profit organizations in New Jersey, USA. It accepts various deposit accounts, including current, savings, NOW, money market, and retirement accounts, as well as certificates of deposit. The Company also offers residential mortgages, multi-family and commercial real estate mortgages, home equity loans and lines of credit, commercial business loans and construction loans, as well as small government loans. companies. In addition, it offers non-deposit investment products and financial planning services, including insurance products, fixed and variable annuities, and retirement planning for individuals and businesses; and buys, sells and holds investment securities. The company has seven branches located in New Brunswick, North Brunswick, South Brunswick, Branchburg, Bridgewater and Edison, New Jersey. Magyar Bancorp, Inc. was founded in 1922 and is headquartered in New Brunswick, New Jersey.



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Sarah J. Greer