Comparing MidWestOne Financial Group (NASDAQ:MOFG) and Primis Financial (NASDAQ:FRST)

Primis Financial (NASDAQ:FRST) and MidWestOne Financial Group (NASDAQ:MOFG) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, profitability, valuation and risk.

Volatility & Risk

Primis Financial has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500. Comparatively, MidWestOne Financial Group has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500.

Earnings and Valuation

This table compares Primis Financial and MidWestOne Financial Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Primis Financial	$277.00 million	1.31	$61.44 million	$2.23	6.55
MidWestOne Financial Group	$238.84 million	4.26	-$60.29 million	$2.81	17.55

Primis Financial has higher revenue and earnings than MidWestOne Financial Group. Primis Financial is trading at a lower price-to-earnings ratio than MidWestOne Financial Group, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

75.0% of Primis Financial shares are held by institutional investors. Comparatively, 65.4% of MidWestOne Financial Group shares are held by institutional investors. 10.9% of Primis Financial shares are held by insiders. Comparatively, 2.5% of MidWestOne Financial Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Primis Financial and MidWestOne Financial Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Primis Financial	1	0	2	1	2.75
MidWestOne Financial Group	0	1	0	0	2.00

Primis Financial currently has a consensus target price of $17.50, indicating a potential upside of 19.86%. Given Primis Financial’s stronger consensus rating and higher probable upside, research analysts plainly believe Primis Financial is more favorable than MidWestOne Financial Group.

Dividends

Primis Financial pays an annual dividend of $0.40 per share and has a dividend yield of 2.7%. MidWestOne Financial Group pays an annual dividend of $0.97 per share and has a dividend yield of 2.0%. Primis Financial pays out 17.9% of its earnings in the form of a dividend. MidWestOne Financial Group pays out 34.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Primis Financial is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Primis Financial and MidWestOne Financial Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Primis Financial	19.27%	5.74%	0.58%
MidWestOne Financial Group	16.66%	10.22%	0.96%

Summary

Primis Financial beats MidWestOne Financial Group on 11 of the 17 factors compared between the two stocks.

About Primis Financial

Primis Financial Corp. is a bank holding company whose principal subsidiary, Primis Bank, provides commercial and consumer banking services. Its offerings include deposit accounts, business and personal loans, mortgage lending, and digital banking services. The company serves customers through branches in Virginia and Maryland, as well as online banking channels. Its mortgage business also supports customers beyond its branch footprint. Primis Financial was formerly known as Southern National Bancorp of Virginia and adopted its current name in 2021, alongside the rebranding of its bank subsidiary as Primis Bank.

About MidWestOne Financial Group

MidWestOne Financial Group, Inc. is a bank holding company headquartered in Iowa City, Iowa. Through its subsidiary, MidWestOne Bank, the company provides community banking services to individuals, businesses and organizations. Its offerings include deposit accounts, consumer and commercial loans, mortgage lending, cash management, and wealth management and trust services. The bank serves customers through offices in Iowa, Minnesota, Wisconsin and Colorado.