Comparing 1ST RES BK EXTO/SH (OTCMKTS:FRSB) and Mercantil Bank (OTCMKTS:AMTB)

1ST RES BK EXTO/SH (OTCMKTS:FRSB) and Mercantil Bank (NASDAQ:AMTB) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, dividends, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and target prices for 1ST RES BK EXTO/SH and Mercantil Bank, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
1ST RES BK EXTO/SH 0 0 0 0 N/A
Mercantil Bank 0 3 0 0 2.00

Mercantil Bank has a consensus price target of $17.33, suggesting a potential upside of 29.84%. Given Mercantil Bank’s higher probable upside, analysts plainly believe Mercantil Bank is more favorable than 1ST RES BK EXTO/SH.

Insider and Institutional Ownership

18.7% of Mercantil Bank shares are owned by institutional investors. 5.1% of Mercantil Bank shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares 1ST RES BK EXTO/SH and Mercantil Bank’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
1ST RES BK EXTO/SH N/A N/A N/A
Mercantil Bank 11.26% 1.69% 0.18%

Earnings and Valuation

This table compares 1ST RES BK EXTO/SH and Mercantil Bank’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
1ST RES BK EXTO/SH $13.52 million 1.41 $2.16 million N/A N/A
Mercantil Bank $370.08 million 1.52 $51.33 million $1.24 10.77

Mercantil Bank has higher revenue and earnings than 1ST RES BK EXTO/SH.

Volatility and Risk

1ST RES BK EXTO/SH has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500. Comparatively, Mercantil Bank has a beta of 0.47, suggesting that its share price is 53% less volatile than the S&P 500.

Summary

Mercantil Bank beats 1ST RES BK EXTO/SH on 9 of the 10 factors compared between the two stocks.

About 1ST RES BK EXTO/SH

First Resource Bank provides personal and business banking products and services primarily in the southeastern area of Pennsylvania. The company accepts checking, money market, escrow, and CD/IRA accounts, as well as offers certificate deposit account registry services and insured cash sweeps. Its loan products include commercial mortgages, construction loans, working capital credit lines, small business administration loans, commercial term loans, home equity line of credit, fixed payment home equity loans, residential construction loans, land loans, vehicle loans, unsecured installment loans, certificate of deposit secured installment loans, and swing loans. The company also provides credit and debit cards; and cash management, ACH origination, sweep/transfer, ATMs, over the counter checks, online and mobile banking, bill payment, telephone banking, wire transfer, guarantee/notary, safe deposit boxes, night depository, foreign currency exchange, cashier's checks, stop payments, and overdraft protection services. It serves businesses, professionals, and individuals in Chester County, Pennsylvania through two full-service branches. First Resource Bank was founded in 2005 and is based in Exton, Pennsylvania.

About Mercantil Bank

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.

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