BB&T (BBT) versus MidSouth Bancorp (MSL) Head to Head Survey

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BB&T (NYSE: MSL) and MidSouth Bancorp (NYSE:MSL) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitability, risk, institutional ownership, dividends, valuation and earnings.

Analyst Recommendations

This is a breakdown of current ratings and price targets for BB&T and MidSouth Bancorp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BB&T 0 10 14 0 2.58
MidSouth Bancorp 0 4 1 0 2.20

BB&T presently has a consensus target price of $54.32, suggesting a potential upside of 3.60%. MidSouth Bancorp has a consensus target price of $14.00, suggesting a potential downside of 5.72%. Given BB&T’s stronger consensus rating and higher probable upside, equities analysts clearly believe BB&T is more favorable than MidSouth Bancorp.

Volatility & Risk

BB&T has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500. Comparatively, MidSouth Bancorp has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500.

Institutional & Insider Ownership

64.0% of BB&T shares are held by institutional investors. Comparatively, 61.3% of MidSouth Bancorp shares are held by institutional investors. 0.5% of BB&T shares are held by insiders. Comparatively, 12.8% of MidSouth Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares BB&T and MidSouth Bancorp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BB&T $12.16 billion 3.34 $2.39 billion $3.14 16.70
MidSouth Bancorp $102.40 million 2.41 -$11.76 million ($0.27) -55.00

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

Profitability

This table compares BB&T and MidSouth Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BB&T 22.53% 11.02% 1.33%
MidSouth Bancorp -9.12% 3.83% 0.43%

Dividends

BB&T pays an annual dividend of $1.62 per share and has a dividend yield of 3.1%. MidSouth Bancorp pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. BB&T pays out 51.6% of its earnings in the form of a dividend. MidSouth Bancorp pays out -14.8% 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. BB&T has raised its dividend for 6 consecutive years. BB&T is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

BB&T beats MidSouth Bancorp on 14 of the 17 factors compared between the two stocks.

About BB&T

BB&T Corporation operates as a financial holding company that provides various banking and trust services for small and mid-size businesses, public agencies, local governments, and individuals. The company operates through four segments: CB-Retail, CB-Commercial, IH&PF, and FS&CF. Its deposit products include noninterest-bearing checking, interest-bearing checking, savings, and money market deposit accounts, as well as certificates of deposit and individual retirement accounts. The company also provides various funding services; and asset management, automobile lending; bankcard lending; consumer finance; home equity and mortgage lending; insurance, such as property and casualty, life, health, employee benefits, commercial general liability, surety, title and other insurance products; investment brokerage; mobile/online banking; and payment, lease financing, small business lending, and wealth management/private banking services. In addition, it offers association, capital markets, institutional trust, insurance premium and commercial finance, international banking, leasing, merchant, commercial deposit and treasury, commercial middle market lending, floor plan lending, commercial mortgage lending, mortgage warehouse lending, private equity investments, real estate lending, and supply chain management services. Further, the company provides retail brokerage, equity and debt underwriting, investment advice, corporate finance, and equity research services, as well as facilitates the origination, trading, and distribution of fixed-income securities and equity products. Additionally, BB&T Corporation offers non-deposit investment products, including discount brokerage services, equities, fixed-rate, variable-rate and index annuities, mutual funds, government and municipal bonds, and money market funds. As of December 31, 2017, it operated 2,049 offices. The company was founded in 1872 and is headquartered in Winston-Salem, North Carolina.

About MidSouth Bancorp

MidSouth Bancorp, Inc., a bank holding company, through its subsidiary MidSouth Bank, N.A., provides various community banking products and services to commercial and retail customers in the United States. The company offers various deposit products, including interest-bearing and noninterest-bearing checking accounts, money market, savings accounts, investment accounts, and NOW account deposits, as well as time deposits, such as certificates of deposits; and commercial and industrial, commercial real estate, and consumer loans, as well as other loans secured by real estate. It also provides cash management services; and electronic banking services comprising remote deposit capturing services, Internet banking, and debit and credit cards. As of February 27, 2018, the company had 48 offices located in Louisiana and Texas, as well as a network of approximately 55,000 surcharge-free ATMs. MidSouth Bancorp, Inc. was founded in 1984 and is headquartered in Lafayette, Louisiana.

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