Contrasting Marlin Business Services (MRLN) & Byline Bancorp (BY)

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Byline Bancorp (NYSE: BY) and Marlin Business Services (NASDAQ:MRLN) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Earnings and Valuation

This table compares Byline Bancorp and Marlin Business Services’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Byline Bancorp $186.86 million 3.75 $21.69 million $0.52 45.79
Marlin Business Services $119.05 million 3.23 $25.29 million $1.50 20.63

Marlin Business Services has lower revenue, but higher earnings than Byline Bancorp. Marlin Business Services is trading at a lower price-to-earnings ratio than Byline Bancorp, indicating that it is currently the more affordable of the two stocks.

Dividends

Marlin Business Services pays an annual dividend of $0.56 per share and has a dividend yield of 1.8%. Byline Bancorp does not pay a dividend. Marlin Business Services pays out 37.3% of its earnings in the form of a dividend.

Insider & Institutional Ownership

31.6% of Byline Bancorp shares are held by institutional investors. Comparatively, 82.5% of Marlin Business Services shares are held by institutional investors. 45.1% of Byline Bancorp shares are held by company insiders. Comparatively, 7.7% of Marlin Business Services shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Byline Bancorp and Marlin Business Services’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Byline Bancorp 11.43% 6.56% 0.87%
Marlin Business Services 26.17% 11.98% 2.02%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Byline Bancorp and Marlin Business Services, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Byline Bancorp 0 3 3 0 2.50
Marlin Business Services 0 0 1 0 3.00

Byline Bancorp presently has a consensus target price of $24.50, indicating a potential upside of 2.90%. Marlin Business Services has a consensus target price of $29.00, indicating a potential downside of 6.30%. Given Byline Bancorp’s higher probable upside, research analysts plainly believe Byline Bancorp is more favorable than Marlin Business Services.

Summary

Marlin Business Services beats Byline Bancorp on 8 of the 15 factors compared between the two stocks.

Byline Bancorp Company Profile

Byline Bancorp, Inc. operates as the bank holding company for Byline Bank that provides a range of banking products and services to small and medium sized businesses, commercial real estate and financial sponsors, and consumers in the United States. It offers non-interest bearing accounts, money market demand accounts, savings accounts, interest bearing checking accounts, and time deposits, as well as certificates of deposit. The company also provides commercial loan products and services, including term loans, revolving lines of credit, construction financing, and cash management products; small business administration loans; and small ticket equipment leasing services, as well as online, mobile, and direct banking services. It operates through 55 branch offices in Chicago metropolitan area; and 1 branch office in Brookfield, Wisconsin. The company was formerly known as Metropolitan Bank Group, Inc. and changed its name to Byline Bancorp, Inc. in 2015. Byline Bancorp, Inc. was incorporated in 1978 and is headquartered in Chicago, Illinois.

Marlin Business Services Company Profile

Marlin Business Services Corp., through its subsidiaries, provides equipment financing solutions to small and mid-sized businesses in the United States. It finances approximately 100 categories of equipment, including commercial and industrial, restaurant, auto, medical, VOIP, and printing equipment, as well as computer software, copiers, cash registers, dental implant systems, and other commercial equipment. The company also offers property insurance coverage for its financed equipment; and operates a commercial bank that issues certificates of deposit and money market demand accounts, as well as provides small business loans. Marlin Business Services Corp. provides its solutions through a network of independent commercial equipment dealers and national account programs, as well as through direct solicitation and relationships with select lease and loan brokers. The company was founded in 1997 and is based in Mount Laurel, New Jersey.

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