Contrasting Mid Penn Bancorp (NASDAQ:MPB) & BM Technologies (NYSE:BMTX)

BM Technologies (NYSE:BMTX) and Mid Penn Bancorp (NASDAQ:MPB) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Earnings and Valuation

This table compares BM Technologies and Mid Penn Bancorp’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BM Technologies	$55.25 million	0.35	-$780,000.00	($1.50)	-1.07
Mid Penn Bancorp	$256.35 million	1.28	$37.40 million	$2.28	8.71

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for BM Technologies and Mid Penn Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BM Technologies	0	1	2	0	2.67
Mid Penn Bancorp	0	0	2	0	3.00

BM Technologies presently has a consensus price target of $6.75, suggesting a potential upside of 319.25%. Mid Penn Bancorp has a consensus price target of $26.00, suggesting a potential upside of 30.92%. Given BM Technologies’ higher possible upside, research analysts clearly believe BM Technologies is more favorable than Mid Penn Bancorp.

Risk & Volatility

BM Technologies has a beta of -0.01, meaning that its share price is 101% less volatile than the S&P 500. Comparatively, Mid Penn Bancorp has a beta of 0.57, meaning that its share price is 43% less volatile than the S&P 500.

Institutional & Insider Ownership

20.2% of BM Technologies shares are owned by institutional investors. Comparatively, 43.1% of Mid Penn Bancorp shares are owned by institutional investors. 8.3% of BM Technologies shares are owned by company insiders. Comparatively, 10.7% of Mid Penn Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares BM Technologies and Mid Penn Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BM Technologies	-30.85%	-38.58%	-25.53%
Mid Penn Bancorp	14.59%	8.46%	0.89%

Summary

Mid Penn Bancorp beats BM Technologies on 12 of the 13 factors compared between the two stocks.

About BM Technologies

BM Technologies, Inc. operates as a financial technology (fintech) company in the United States. It facilitates deposits and banking services between a customer and its partner bank, customers bank, which is a related party and is a Federal Deposit Insurance Corporation insured bank. The company, through its fintech banking platform, offers digital banking and disbursement services to consumers and students through digital channels. The company was formerly known as BankMobile Technologies, Inc. and changed its name to BM Technologies, Inc. in January 2021. BM Technologies, Inc. is headquartered in Wayne, Pennsylvania.

About Mid Penn Bancorp

Mid Penn Bancorp, Inc. operates as the bank holding company for Mid Penn Bank that engages in the provision of 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 and wealth management and insurance services; 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.