Head-To-Head Comparison: Meridian (NASDAQ:MRBK) & Primis Financial (NASDAQ:FRST)

Meridian (NASDAQ:MRBK) and Primis Financial (NASDAQ:FRST) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.

Profitability

This table compares Meridian and Primis Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Meridian	11.89%	12.29%	0.95%
Primis Financial	19.19%	5.49%	0.55%

Volatility & Risk

Meridian has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500. Comparatively, Primis Financial has a beta of 0.73, meaning that its stock price is 27% less volatile than the S&P 500.

Dividends

Meridian pays an annual dividend of $0.56 per share and has a dividend yield of 3.0%. Primis Financial pays an annual dividend of $0.40 per share and has a dividend yield of 2.6%. Meridian pays out 27.2% of its earnings in the form of a dividend. Primis Financial pays out 18.5% 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.

Earnings & Valuation

This table compares Meridian and Primis Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Meridian	$205.49 million	1.07	$21.84 million	$2.06	8.98
Primis Financial	$277.00 million	1.39	$61.44 million	$2.16	7.21

Primis Financial has higher revenue and earnings than Meridian. Primis Financial is trading at a lower price-to-earnings ratio than Meridian, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

58.6% of Meridian shares are owned by institutional investors. Comparatively, 75.0% of Primis Financial shares are owned by institutional investors. 14.1% of Meridian shares are owned by company insiders. Comparatively, 10.9% of Primis Financial shares are owned 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.

Analyst Ratings

This is a summary of current ratings and price targets for Meridian and Primis Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Meridian	1	0	3	0	2.50
Primis Financial	0	0	2	1	3.33

Meridian presently has a consensus target price of $22.00, suggesting a potential upside of 18.89%. Primis Financial has a consensus target price of $17.50, suggesting a potential upside of 12.43%. Given Meridian’s higher possible upside, equities research analysts clearly believe Meridian is more favorable than Primis Financial.

Summary

Primis Financial beats Meridian on 10 of the 17 factors compared between the two stocks.

About Meridian

Meridian Corporation operates as the holding company for Meridian Bank that provides commercial banking products and services in Pennsylvania, New Jersey, Delaware, Florida, and Maryland. The company offers various deposit products, such as demand non-interest bearing, demand interest bearing, savings accounts, money market accounts, and time deposits. It also provides commercial and industrial loans comprising business lines of credit, term loans, small business lending, lease financing, shared national credits, and other financing; commercial real estate, and land development and construction loans for residential and commercial projects; and consumer and home equity lending, private banking, merchant, and title and land settlement services. In addition, the company operates and originates mortgage loans for 1-4 family dwellings; and offers real estate holding, investment advisory, and equipment leasing services, as well as financial planning and wealth management services. Meridian Corporation was incorporated in 2004 and is headquartered in Malvern, Pennsylvania.

About Primis Financial

Primis Financial Corp. operates as the bank holding company for Primis Bank that provides a range of financial services to individuals and small and medium sized businesses in the United States. Its deposit products include checking, NOW, savings, and money market accounts, as well as certificates of deposits. The company also provides commercial business and real estate, construction, secured asset based, small business administration, mortgage warehouse lending products, as well as financing for medical, dental, and veterinary businesses; residential mortgage, trust mortgage, home equity lines of credit, secured and unsecured personal, and consumer loans, as well as life insurance premium financing and demand loans. It also offers cash management services comprising investment/sweep, zero balance, and controlled disbursement accounts; and wire transfer, employer/payroll processing, night depository, depository transfer, merchant, ACH origination, and remote deposit capture services. In addition, the company provides debit cards, ATM services, notary services, and mobile and online banking. It operates full-service branches in Virginia and Maryland. The company was formerly known as Southern National Bancorp of Virginia, Inc. and changed its name to Primis Financial Corp. Primis Financial Corp. was founded in 2004 and is based in McLean, Virginia.