Merchants Bancshares,Inc. (NASDAQ: MBVT) and Guaranty Bancshares (NASDAQ:GNTY) are both financials companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, valuation, risk, institutional ownership, analyst recommendations, earnings and profitability.

Dividends

Merchants Bancshares,Inc. pays an annual dividend of $1.12 per share and has a dividend yield of 2.2%. Guaranty Bancshares pays an annual dividend of $0.52 per share and has a dividend yield of 1.6%. Merchants Bancshares,Inc. pays out 52.1% of its earnings in the form of a dividend.

Profitability

This table compares Merchants Bancshares,Inc. and Guaranty Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Merchants Bancshares,Inc. 20.64% 9.19% 0.71%
Guaranty Bancshares N/A N/A N/A

Analyst Ratings

This is a breakdown of recent ratings for Merchants Bancshares,Inc. and Guaranty Bancshares, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Merchants Bancshares,Inc. 0 1 0 0 2.00
Guaranty Bancshares 0 2 0 0 2.00

Guaranty Bancshares has a consensus price target of $34.00, suggesting a potential upside of 6.28%. Given Guaranty Bancshares’ higher possible upside, analysts clearly believe Guaranty Bancshares is more favorable than Merchants Bancshares,Inc..

Volatility and Risk

Merchants Bancshares,Inc. has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, Guaranty Bancshares has a beta of 0.01, indicating that its share price is 99% less volatile than the S&P 500.

Institutional & Insider Ownership

38.6% of Merchants Bancshares,Inc. shares are owned by institutional investors. Comparatively, 19.4% of Guaranty Bancshares shares are owned by institutional investors. 8.8% of Merchants Bancshares,Inc. shares are owned by company insiders. Comparatively, 34.1% of Guaranty Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Merchants Bancshares,Inc. and Guaranty Bancshares’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Merchants Bancshares,Inc. N/A N/A N/A $2.15 23.16
Guaranty Bancshares $67.66 million 5.20 N/A N/A N/A

Summary

Merchants Bancshares,Inc. beats Guaranty Bancshares on 6 of the 10 factors compared between the two stocks.

About Merchants Bancshares,Inc.

Merchants Bancshares, Inc. is a bank holding company. The Company’s subsidiary, Merchants Bank (the Bank), is a commercial bank. The Bank offers a range of deposit, loan, cash management and trust services to meet the financial needs of individual consumers, businesses and municipalities. Merchants Bank’s trust division offers investment management, financial planning and trustee services. The Bank offers commercial, financial and agricultural loans, municipal loans, residential real estate loans, commercial real estate loans, construction real estate loans and consumer installment loans for various personal needs, including vehicle and boat financing. The Bank’s deposits include demand; savings and interest bearing checking and money market accounts, and time deposits.

About Guaranty Bancshares

Guaranty Bancshares, Inc. is the holding company for Guaranty Bank & Trust (Guaranty). Guaranty offers various solutions, such as personal banking, business banking, mortgage and wealth management. Its personal banking solutions include checking accounts, which include compare accounts, green checking, student checking, choice checking, guaranty interest checking, order checks and debit cards; savings accounts, which include regular savings, premier money market, certificate of deposit, individual retirement account (IRA) options and health savings account, and online banking, which includes money desktop and e-statements. Guaranty offers various loans, including line of credit, small business administration loans and real estate loans. Guaranty also offers mobile banking solutions, mortgage warehouse lending solutions and treasury management solutions. It has approximately 30 bank locations in over 20 Texas communities.

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