Analysis of Midland States Bancorp (NASDAQ:MSBI) and First Interstate BancSystem (NASDAQ:FIBK)


Midland States Bancorp (NASDAQ:MSBI – Get Rating) and First Interstate BancSystem (NASDAQ:FIBK – Get Rating) are both finance companies, but which company is the best performer? We’ll compare the two companies based on their dividend strength, analyst recommendations, earnings, risk, profitability, valuation, and institutional ownership.

Risk and Volatility

Midland States Bancorp has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500. In comparison, First Interstate BancSystem has a beta of 1.04, indicating that its stock price is its stock is 4% more volatile than the S&P 500.

Profitability

This table compares the net margins, return on equity, and return on assets of Midland States Bancorp and First Interstate BancSystem.

Net margins Return on equity return on assets
Midland States Bancorp 26.88% 13.04% 1.21%
First interstate banking system 29.28% 8.40% 0.86%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Midland States Bancorp and First Interstate BancSystem, as reported by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Midland States Bancorp 0 1 0 0 2.00
First interstate banking system 0 1 3 0 2.75

Midland States Bancorp currently has a consensus target price of $28.00, suggesting a potential upside of 7.94%. First Interstate BancSystem has a consensus target price of $44.00, suggesting a potential upside of 26.69%. Given First Interstate BancSystem’s stronger consensus rating and higher likely upside, analysts clearly believe that First Interstate BancSystem is more favorable than Midland States Bancorp.

Institutional and insider ownership

58.5% of Midland States Bancorp shares are held by institutional investors. By comparison, 69.4% of First Interstate BancSystem’s shares are held by institutional investors. 5.8% of shares of Midland States Bancorp are held by insiders of the company. By comparison, 6.4% of First Interstate BancSystem’s stock is held by insiders of the company. Strong institutional ownership is an indication that endowments, large fund managers, and hedge funds believe a company will outperform the market over the long term.

Valuation and benefits

This chart compares the revenue, earnings per share (EPS), and valuation of Midland States Bancorp and First Interstate BancSystem.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Midland States Bancorp $307.72 million 1.88 $81.32 million $3.68 7.05
First interstate banking system $656.00 million 3.29 $192.10 million $1.92 18.09

First Interstate BancSystem has higher revenue and profit than Midland States Bancorp. Midland States Bancorp trades at a lower price-to-earnings ratio than First Interstate BancSystem, indicating that it is currently the more affordable of the two stocks.

Dividends

Midland States Bancorp pays an annual dividend of $1.16 per share and has a dividend yield of 4.5%. First Interstate BancSystem pays an annual dividend of $1.64 per share and has a dividend yield of 4.7%. Midland States Bancorp pays 31.5% of its profits as a dividend. First Interstate BancSystem pays 85.4% of its earnings as dividends, suggesting it may not have enough earnings to cover its dividend payment in the future. Midland States Bancorp has increased its dividend for 6 consecutive years and First Interstate BancSystem has increased its dividend for 9 consecutive years. First Interstate BancSystem is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

First Interstate BancSystem beats Midland States Bancorp on 13 out of 17 factors compared between the two stocks.

Midland States Bancorp Company Profile (Get a rating)

Midland States Bancorp, Inc. operates as a financial holding company for Midland States Bank which provides various banking products and services to individuals, businesses, municipalities and other entities. It operates through Banking, Wealth Management and Others segments. The company accepts various deposits, such as checking, savings, money market, and sweepstakes accounts, as well as certificates of deposit. It also offers term loans for the purchase of capital goods; lines of credit for working capital and operational purposes; commercial real estate loans for owner-occupied and non-owner-occupied commercial properties, as well as loans for agricultural land; construction and land development loans commercial real estate investment property developers, residential developments, individual clients for the construction of single-family homes, as well as the construction of owner-user properties; and residential real estate loans and home equity lines of credit. In addition, the Company offers consumer installment loans for the purchase of cars, boats and other recreational vehicles, as well as for the purchase of major appliances and other home improvement projects; commercial equipment leasing; and trust and wealth management products and services, including financial and estate planning, trustee and custodial services, investment management, tax and insurance planning, business planning, consulting and administration of corporate pension plans and retail brokerage services. As of December 31, 2021, it operated 52 full-service banking offices. The company was founded in 1881 and is headquartered in Effingham, Illinois.

First Interstate BancSystem Company Profile (Get a rating)

First Interstate BancSystem, Inc. operates as a bank holding company for First Interstate Bank which provides a range of banking products and services in the United States. It offers various traditional deposit products, including checks, savings deposits and term deposits; and repurchase agreements primarily for commercial and municipal depositors. The Company also offers real estate loans including commercial real estate, construction, residential, agricultural and other real estate loans; consumer loans including direct personal loans, credit card loans and lines of credit and indirect loans; variable and fixed rate business loans for small and medium sized manufacturing, wholesale, retail and service businesses for working capital needs and business expansion; and agricultural loans. Additionally, it provides a range of trust, employee benefits, investment management, insurance, agency and custodial services to individuals, businesses and non-profit organizations. In addition, the company offers marketing, credit review, loan servicing, credit card issuance and servicing, mortgage sales and servicing, indirect purchase and processing of consumer loans, loan collection and other operational services, as well as online and mobile banking. It serves individuals, businesses, municipalities, and other entities in a variety of industries, including agriculture, construction, education, energy, government services, healthcare, hospitality, housing, l mining, professional services, real estate development, retail, technology, tourism and wholesale. Trade. As of December 31, 2021, it operated 147 banking offices, including self-drive facilities in communities in Idaho, Montana, Oregon, South Dakota, Washington and Wyoming. The company was incorporated in 1971 and is based in Billings, Montana.



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