International Bancshares (NASDAQ: MOFG) and MidWestOne Financial Group (NASDAQ:MOFG) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitability, analyst recommendations, valuation, dividends, risk and institutional ownership.

Valuation and Earnings

This table compares International Bancshares and MidWestOne Financial Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
International Bancshares $565.54 million 5.47 $157.43 million N/A N/A
MidWestOne Financial Group $141.69 million 3.00 $18.69 million $1.81 19.19

International Bancshares has higher revenue and earnings than MidWestOne Financial Group.

Dividends

International Bancshares pays an annual dividend of $0.66 per share and has a dividend yield of 1.4%. MidWestOne Financial Group pays an annual dividend of $0.78 per share and has a dividend yield of 2.2%. MidWestOne Financial Group pays out 43.1% of its earnings in the form of a dividend. International Bancshares has raised its dividend for 6 consecutive years and MidWestOne Financial Group has raised its dividend for 5 consecutive years.

Profitability

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

Net Margins Return on Equity Return on Assets
International Bancshares 31.78% 10.38% 1.58%
MidWestOne Financial Group 14.13% 7.09% 0.76%

Volatility & Risk

International Bancshares has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500. Comparatively, MidWestOne Financial Group has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for International Bancshares and MidWestOne Financial Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
International Bancshares 0 0 0 0 N/A
MidWestOne Financial Group 0 0 1 0 3.00

MidWestOne Financial Group has a consensus target price of $37.00, suggesting a potential upside of 6.54%. Given MidWestOne Financial Group’s higher probable upside, analysts clearly believe MidWestOne Financial Group is more favorable than International Bancshares.

Insider & Institutional Ownership

58.0% of International Bancshares shares are held by institutional investors. Comparatively, 45.7% of MidWestOne Financial Group shares are held by institutional investors. 17.9% of International Bancshares shares are held by insiders. Comparatively, 7.2% of MidWestOne Financial Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

International Bancshares beats MidWestOne Financial Group on 11 of the 15 factors compared between the two stocks.

International Bancshares Company Profile

International Bancshares Corporation, a financial holding company, provides commercial and retail banking services. It accepts checking and saving deposits; and offers commercial, real estate, personal, home improvement, automobile, and other installment and term loans. The company also provides international banking services, including letters of credit, commercial and industrial loans, and foreign exchange. In addition, it offers other banking related services, such as credit cards and safety deposit boxes; collection, notary public, escrow, and drive-up and walk-up facilities, as well as other customary banking services; and Internet banking services, as well as securities products through third party providers. The company provides its services through 192 branch locations and 294 ATMs serving 87 communities in south, central, and southeast Texas, as well as in the state of Oklahoma. International Bancshares Corporation was founded in 1966 and is based in Laredo, Texas.

MidWestOne Financial Group Company Profile

MidWestOne Financial Group, Inc. is a bank holding company. The company operates through the following subsidiaries: MidWestOne Bank and MidWestOne Insurance Services, Inc. The MidWestOne Bank provides retail banking services, which include deposit products, including checking and other demand deposit accounts, NOW accounts, savings accounts, money market accounts, certificates of deposit, individual retirement accounts and other time deposits. The MidWestOne Insurance Services, Inc. provides personal and business insurance services in Iowa. It offers commercial and industrial, agricultural, real estate mortgage and consumer loans. The company’s other products and services include debit cards, automated teller machines, on-line banking, mobile banking, and safe deposit boxes. It also has a trust and investment department through which it offers a variety of trust and investment services, including administering estates, personal trusts, conservatorships, pension and profit-sharing funds and providing property management, farm management, custodial, financial planning, investment management and retail brokerage services. MidWestOne Financial Group was founded on March 14, 2008 and is headquartered in Iowa City, IA.

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