M&F Bancorp (OTCMKTS:MFBP) and TriCo Bancshares (NASDAQ:TCBK) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, valuation, analyst recommendations, profitability, institutional ownership and risk.

Earnings & Valuation

This table compares M&F Bancorp and TriCo Bancshares’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
M&F Bancorp $12.23 million 0.45 $340,000.00 N/A N/A
TriCo Bancshares $231.42 million 4.81 $40.55 million $2.08 17.59

TriCo Bancshares has higher revenue and earnings than M&F Bancorp.

Analyst Ratings

This is a breakdown of current ratings and price targets for M&F Bancorp and TriCo Bancshares, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
M&F Bancorp 0 0 0 0 N/A
TriCo Bancshares 0 1 4 0 2.80

TriCo Bancshares has a consensus target price of $43.50, indicating a potential upside of 18.88%. Given TriCo Bancshares’ higher probable upside, analysts clearly believe TriCo Bancshares is more favorable than M&F Bancorp.

Risk and Volatility

M&F Bancorp has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500. Comparatively, TriCo Bancshares has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500.

Profitability

This table compares M&F Bancorp and TriCo Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
M&F Bancorp N/A N/A N/A
TriCo Bancshares 18.77% 11.22% 1.19%

Dividends

TriCo Bancshares pays an annual dividend of $0.68 per share and has a dividend yield of 1.9%. M&F Bancorp does not pay a dividend. TriCo Bancshares pays out 32.7% of its earnings in the form of a dividend. TriCo Bancshares has raised its dividend for 4 consecutive years.

Institutional & Insider Ownership

9.2% of M&F Bancorp shares are owned by institutional investors. Comparatively, 53.9% of TriCo Bancshares shares are owned by institutional investors. 2.9% of M&F Bancorp shares are owned by company insiders. Comparatively, 14.2% of TriCo Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

TriCo Bancshares beats M&F Bancorp on 13 of the 14 factors compared between the two stocks.

About M&F Bancorp

M&F Bancorp, Inc. operates as the bank holding company for Mechanics and Farmers Bank that provides consumer and commercial banking products and services in North Carolina. The company offers deposit products, including checking, savings, money market, and individual retirement accounts, as well as certificates of deposit. It also provides loans for real estate, construction, businesses, personal use, home improvement, and automobiles; and equity lines of credit, credit lines, consumer loans, and credit cards. In addition, the company offers safe deposit boxes, Internet and mobile banking services, notary services, and automated teller machine services, as well as electronic funds transfer services, such as wire transfers. It operates seven branch offices in Durham, Raleigh, Charlotte, Greensboro, and Winston-Salem, North Carolina. The company was founded in 1907 and is headquartered in Durham, North Carolina.

About TriCo Bancshares

TriCo Bancshares operates as a bank holding company for Tri Counties Bank that provides commercial banking services to retail customers and small to medium-sized businesses. It accepts demand, savings, and money market accounts, as well as time deposits; and provides residential and commercial real estate mortgage, consumer, commercial, agricultural, and real estate construction loans. The company also offers installment note collection services; issues cashier's checks; sells travelers checks; and provides safe deposit boxes and other customary banking services. In addition, it provides independent financial and broker-dealer services. The company operates 57 traditional branches, 9 in-store branches, and 2 loan production offices in northern and central California. TriCo Bancshares was founded in 1974 and is headquartered in Chico, California.

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