S&T Bancorp (NASDAQ:STBA) vs. Mid Penn Bancorp (NASDAQ:MPB) Head-To-Head Survey

Mid Penn Bancorp (NASDAQ:MPB) and S&T Bancorp (NASDAQ:STBA) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, dividends, valuation, risk, institutional ownership, analyst recommendations and earnings.

Earnings and Valuation

This table compares Mid Penn Bancorp and S&T Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mid Penn Bancorp	$350.61 million	2.58	$56.25 million	$2.83	12.63
S&T Bancorp	$568.51 million	3.02	$134.23 million	$3.76	12.97

S&T Bancorp has higher revenue and earnings than Mid Penn Bancorp. Mid Penn Bancorp is trading at a lower price-to-earnings ratio than S&T Bancorp, indicating that it is currently the more affordable of the two stocks.

Dividends

Mid Penn Bancorp pays an annual dividend of $0.92 per share and has a dividend yield of 2.6%. S&T Bancorp pays an annual dividend of $1.48 per share and has a dividend yield of 3.0%. Mid Penn Bancorp pays out 32.5% of its earnings in the form of a dividend. S&T Bancorp pays out 39.4% 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. S&T Bancorp has increased its dividend for 13 consecutive years. S&T Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Mid Penn Bancorp and S&T Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mid Penn Bancorp	0	1	3	0	2.75
S&T Bancorp	0	5	2	0	2.29

Mid Penn Bancorp presently has a consensus price target of $39.50, suggesting a potential upside of 10.49%. S&T Bancorp has a consensus price target of $51.60, suggesting a potential upside of 5.82%. Given Mid Penn Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe Mid Penn Bancorp is more favorable than S&T Bancorp.

Risk and Volatility

Mid Penn Bancorp has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500. Comparatively, S&T Bancorp has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500.

Profitability

This table compares Mid Penn Bancorp and S&T Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mid Penn Bancorp	17.55%	8.82%	1.13%
S&T Bancorp	24.51%	9.74%	1.42%

Insider & Institutional Ownership

43.1% of Mid Penn Bancorp shares are held by institutional investors. Comparatively, 65.2% of S&T Bancorp shares are held by institutional investors. 7.2% of Mid Penn Bancorp shares are held by company insiders. Comparatively, 1.2% of S&T Bancorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

S&T Bancorp beats Mid Penn Bancorp on 12 of the 17 factors compared between the two stocks.

About Mid Penn Bancorp

Mid Penn Bancorp, Inc. operates as the bank holding company for Mid Penn Bank that provides commercial banking services to individuals, partnerships, non-profit organizations, and corporations. The company offers various time and demand deposit products, including checking accounts, savings accounts, clubs, money market deposit accounts, certificates of deposit, and individual retirement accounts. It also provides a range of loan products comprising mortgage and home equity loans, secured and unsecured commercial and consumer loans, lines of credit, construction financing, farm loans, community development loans, loans to non-profit entities, and local government loans. In addition, the company offers trust, retail investment, wealth management, and insurance services; and provides online banking, telephone banking, cash management, and automated teller services, as well as safe deposit boxes. The company was founded in 1868 and is headquartered in Harrisburg, Pennsylvania.

About S&T Bancorp

S&T Bancorp, Inc. is a bank holding company, which engages in the provision of consumer, commercial, and small business banking services. It operates through the following segments: Commercial Real Estate, Commercial and Industrial, Commercial Construction, Business Banking, Consumer Real Estate, and Other Consumer. The Commercial Real Estate segment includes both owner-occupied properties and investment properties for various purposes such as hotels, retail, multifamily and health care. The Commercial and Industrial segment focuses on the companies or manufacturers for the purpose of production, operating capacity, accounts receivable, inventory or equipment financing. The Commercial Construction segment refers to the finance construction of buildings or other structures, as well as to finance the acquisition and development of raw land for various purposes. The Business Banking segment is made to small businesses that are standard, non-complex products evaluated through a streamlined credit approval process that has been designed to maximize efficiency while maintaining high credit quality standards. The Consumer Real Estate segment offers first and second liens such as 1-4 family residential mortgages, home equity loans and home equity lines of credit. The Other Consumer segment consists of individuals that may be secured by assets other than 1-4 family residences, as well as unsecured loans. The company was founded on March 17, 1983 and is headquartered in Indiana, PA.