Contrasting Mechanics Bancorp (NASDAQ:MCHB) and Bar Harbor Bankshares (NYSE:BHB)

Mechanics Bancorp (NASDAQ:MCHB) and Bar Harbor Bankshares (NYSE:BHB) are both financial services companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, analyst recommendations, valuation and risk.

Valuation & Earnings

This table compares Mechanics Bancorp and Bar Harbor Bankshares”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mechanics Bancorp	$358.19 million	9.45	-$144.34 million	($6.76)	-2.26
Bar Harbor Bankshares	$156.64 million	3.30	$38.72 million	$2.32	13.34

Bar Harbor Bankshares has lower revenue, but higher earnings than Mechanics Bancorp. Mechanics Bancorp is trading at a lower price-to-earnings ratio than Bar Harbor Bankshares, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

74.7% of Mechanics Bancorp shares are held by institutional investors. Comparatively, 54.5% of Bar Harbor Bankshares shares are held by institutional investors. 4.6% of Mechanics Bancorp shares are held by company insiders. Comparatively, 2.6% of Bar Harbor Bankshares shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Mechanics Bancorp and Bar Harbor Bankshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mechanics Bancorp	0	2	0	0	2.00
Bar Harbor Bankshares	0	2	1	0	2.33

Mechanics Bancorp presently has a consensus target price of $14.50, indicating a potential downside of 5.23%. Bar Harbor Bankshares has a consensus target price of $34.50, indicating a potential upside of 11.47%. Given Bar Harbor Bankshares’ stronger consensus rating and higher possible upside, analysts clearly believe Bar Harbor Bankshares is more favorable than Mechanics Bancorp.

Volatility & Risk

Mechanics Bancorp has a beta of 1.54, indicating that its stock price is 54% more volatile than the S&P 500. Comparatively, Bar Harbor Bankshares has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500.

Profitability

This table compares Mechanics Bancorp and Bar Harbor Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mechanics Bancorp	-14.49%	4.74%	0.41%
Bar Harbor Bankshares	N/A	N/A	N/A

About Mechanics Bancorp

HomeStreet, Inc. operates as the bank holding company for HomeStreet Bank that provides commercial, mortgage, and consumer/retail banking services primarily in the Western United States. The company offers personal and business checking, savings accounts, interest-bearing negotiable order of withdrawal accounts, money market accounts, and time certificates of deposit; credit cards; insurance; and treasury management products and services. Its loan products include commercial business and agriculture loans, single family residential mortgages, consumer loans, commercial loans secured by residential and commercial real estate, and construction loans for residential and commercial real estate development, as well as consumer installment loans and permanent loans on commercial real estate and single-family residences. In addition, the company offers its products and services through bank branches, loan production offices, and ATMs, as well as through online, mobile, and telephone banking. As of December 31, 2021, it operated 60 full-service bank branches located in Washington state, Northern and Southern California, the Portland, Oregon, and Hawaii; and five primary stand-alone commercial lending centers in Central Washington, Oregon, Southern California, Idaho, and Utah. HomeStreet, Inc. serves small and medium sized businesses, real estate investors, professional firms, and individuals. The company was formerly known as Continental Mortgage and Loan Company. HomeStreet, Inc. was incorporated in 1921 and is headquartered in Seattle, Washington.

About Bar Harbor Bankshares

Bar Harbor Bankshares operates as the holding company for Bar Harbor Bank & Trust that provides commercial, lending, retail, and wealth management banking services. It accepts various deposit products, including interest-bearing and non-interest-bearing demand accounts, savings accounts, time deposits, and money market deposit accounts, as well as certificates of deposit. The company also provides commercial real estate loans, such as multi-family, commercial construction and land development, and other commercial real estate classes; commercial and industrial loans, including loans to commercial and agricultural businesses, and tax exempt entities; residential real estate loans consists of mortgages for 1-4 family housing; and consumer loans comprises home equity loans, lines of credit, auto, and other installment lending. In addition, it provides life insurance, annuity, and retirement products, as well as financial planning services; and third-party investment and insurance services. Further, the company offers trust and estate administration, wealth advisory, and investment management services to individuals, businesses, not-for-profit organizations, and municipalities; and 401K plan, financial, estate and charitable planning, investment management, family office, municipal, and tax services. It operates 53 locations across Maine, New Hampshire, and Vermont. The company was founded in 1887 and is based in Bar Harbor, Maine.