Mercantil Bank (NASDAQ:AMTB) and NBT Bancorp (NASDAQ:NBTB) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, valuation, dividends, profitability, earnings and institutional ownership.

Insider & Institutional Ownership

13.9% of Mercantil Bank shares are held by institutional investors. Comparatively, 54.5% of NBT Bancorp shares are held by institutional investors. 5.1% of Mercantil Bank shares are held by company insiders. Comparatively, 3.3% of NBT Bancorp 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.

Valuation and Earnings

This table compares Mercantil Bank and NBT Bancorp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mercantil Bank $363.23 million 2.51 $45.83 million $1.36 15.50
NBT Bancorp $469.02 million 3.79 $112.57 million $2.56 15.86

NBT Bancorp has higher revenue and earnings than Mercantil Bank. Mercantil Bank is trading at a lower price-to-earnings ratio than NBT Bancorp, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Mercantil Bank and NBT Bancorp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mercantil Bank 0 5 0 0 2.00
NBT Bancorp 0 2 0 0 2.00

Mercantil Bank currently has a consensus target price of $18.58, indicating a potential downside of 11.86%. NBT Bancorp has a consensus target price of $38.00, indicating a potential downside of 6.40%. Given NBT Bancorp’s higher possible upside, analysts clearly believe NBT Bancorp is more favorable than Mercantil Bank.

Profitability

This table compares Mercantil Bank and NBT Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mercantil Bank 13.91% 7.93% 0.77%
NBT Bancorp 24.08% 11.43% 1.26%

Dividends

NBT Bancorp pays an annual dividend of $1.04 per share and has a dividend yield of 2.6%. Mercantil Bank does not pay a dividend. NBT Bancorp pays out 40.6% of its earnings in the form of a dividend.

Summary

NBT Bancorp beats Mercantil Bank on 11 of the 13 factors compared between the two stocks.

Mercantil Bank Company Profile

Mercantil Bank Holding Corporation operates as a bank holding company for Amerant Bank, N.A. that provides banking products and services to individuals and businesses in the United States and internationally. The company operates through four segments: Personal and Commercial Banking, Corporate LATAM, Treasury, and Institutional. It offers a range of checking and savings accounts, certificates of deposit, and money market accounts. The company also provides variable and fixed rate commercial real estate loans; loans secured by owner-occupied properties; loans to domestic and foreign individuals primarily secured by personal residence; working capital loans, asset-based lending, participations in shared national credits, purchased receivables, and small business administration loans; loans to financial institutions and acceptances; and consumer loans and overdrafts. In addition, it offers trust and estate planning products and services, brokerage and investment advisory services in global capital markets, and wealth management and fiduciary services. Further, the company provides debit and credit cards; remote deposit capture, online banking, mobile banking, e-statements, night depository, direct deposit, and treasury management services; and cashier's checks, safe deposit boxes, and letters of credit. As of March 21, 2019, it operated 23 banking centers comprising 15 in South Florida and 8 in Houston, as well as loan production offices in Dallas, Texas, and New York. The company was founded in 1979 and is headquartered in Coral Gables, Florida.

NBT Bancorp Company Profile

NBT Bancorp Inc., a financial holding company, provides commercial banking, retail banking, and wealth management services. Its deposit products include demand deposit, savings, negotiable order of withdrawal, money market deposit, and certificate of deposit accounts. The company's loan portfolio comprises commercial and industrial, commercial real estate, agricultural, and commercial construction loans; indirect and direct consumer, home equity, direct loans, mortgages, business banking loans, and commercial loans; and residential real estate loans, as well as development loans. It also provides trust and investment services; financial planning and life insurance services; and retirement plan consulting and recordkeeping services. In addition, the company offers insurance products comprising personal property and casualty, business liability, and commercial insurance, as well as other products and services through 24-hour online, mobile, and telephone channels that enable customers to check balances, make deposits, transfer funds, pay bills, access statements, apply for loans, and access various other products and services. As of December 31, 2018, it had 151 banking locations and 182 ATMs in Pennsylvania, Vermont, Massachusetts, New Hampshire, and Maine. NBT Bancorp Inc. was founded in 1856 and is headquartered in Norwich, New York.

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