Mackinac Financial (NASDAQ:MFNC) and Parke Bancorp (NASDAQ:PKBK) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Profitability

This table compares Mackinac Financial and Parke Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mackinac Financial 19.81% 9.16% 1.08%
Parke Bancorp 36.47% 17.81% 1.89%

Insider & Institutional Ownership

50.5% of Mackinac Financial shares are held by institutional investors. Comparatively, 38.7% of Parke Bancorp shares are held by institutional investors. 14.9% of Mackinac Financial shares are held by company insiders. Comparatively, 17.8% of Parke Bancorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Mackinac Financial and Parke Bancorp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mackinac Financial $59.64 million 2.91 $8.37 million $1.22 13.25
Parke Bancorp $65.28 million 4.03 $24.82 million N/A N/A

Parke Bancorp has higher revenue and earnings than Mackinac Financial.

Volatility and Risk

Mackinac Financial has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500. Comparatively, Parke Bancorp has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500.

Dividends

Mackinac Financial pays an annual dividend of $0.56 per share and has a dividend yield of 3.5%. Parke Bancorp pays an annual dividend of $0.64 per share and has a dividend yield of 2.6%. Mackinac Financial pays out 45.9% of its earnings in the form of a dividend. Mackinac Financial has increased its dividend for 5 consecutive years and Parke Bancorp has increased its dividend for 4 consecutive years. Mackinac Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of current ratings and target prices for Mackinac Financial and Parke Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mackinac Financial 0 0 0 0 N/A
Parke Bancorp 0 0 0 0 N/A

Summary

Parke Bancorp beats Mackinac Financial on 8 of the 13 factors compared between the two stocks.

Mackinac Financial Company Profile

Mackinac Financial Corporation provides banking solutions. It offers demand deposits and interest and non-interest bearing time and savings deposits. It's deposits include jumbo deposits and retail time deposits. The company provides commercial and industrial loans, consumer loans, commercial real estate loans, and other loans and leases. The bank offers consumer loans, including credit card loans, revolving credit plans, and automotive loans. It offers commercial real estate loans for land development and on-site construction of industrial, commercial, residential, or farm buildings in the United States; real estate-backed residential loans; and commercial loans collateralized by real estate properties. It offers domestic and foreign commercial and industrial loans. The bank offers loans for the purpose of financing agricultural production; loans which include planned and unplanned overdrafts, to governments in non-U.S. countries, to their official institutions, and to international and regional institutions. The company was formerly known as North Country Financial Corporation and changed its name to Mackinac Financial Corporation in December 2004. Mackinac Financial Corporation was founded in 1974 and is based in Manistique, Michigan.

Parke Bancorp Company Profile

Parke Bancorp, Inc. operates as the bank holding company for Parke Bank that provides personal and business financial services to individuals and small to mid-sized businesses. The company offers various deposit products, including checking, savings, money market, and individual retirement accounts, as well as certificates of deposit. Its loan portfolio comprises commercial and industrial, construction, commercial and residential real estate mortgage, and consumer loans. In addition, the company provides debit cards, Internet banking, and online bill payment services. It operates through full-service offices in Northfield, New Jersey; Washington Township, Gloucester County, New Jersey; Philadelphia, Pennsylvania; and Galloway Township, New Jersey. Parke Bancorp, Inc. was founded in 1999 and is headquartered in Washington Township, New Jersey.

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