Financial Review: Bank Hapoalim (OTCMKTS:BKHYY) vs. Mid Penn Bancorp (NASDAQ:MPB)

Mid Penn Bancorp (NASDAQ:MPB) and Bank Hapoalim (OTCMKTS:BKHYY) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, dividends, profitability, valuation, institutional ownership and earnings.

Volatility and Risk

Mid Penn Bancorp has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500. Comparatively, Bank Hapoalim has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500.

Institutional & Insider Ownership

43.1% of Mid Penn Bancorp shares are held by institutional investors. 7.2% of Mid Penn Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Mid Penn Bancorp and Bank Hapoalim”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mid Penn Bancorp	$350.61 million	2.52	$56.25 million	$2.88	12.11
Bank Hapoalim	$12.56 billion	2.46	$2.84 billion	$11.32	10.43

Bank Hapoalim has higher revenue and earnings than Mid Penn Bancorp. Bank Hapoalim 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.

Dividends

Mid Penn Bancorp pays an annual dividend of $0.92 per share and has a dividend yield of 2.6%. Bank Hapoalim pays an annual dividend of $3.75 per share and has a dividend yield of 3.2%. Mid Penn Bancorp pays out 31.9% of its earnings in the form of a dividend. Bank Hapoalim pays out 33.1% 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mid Penn Bancorp	17.83%	9.15%	1.18%
Bank Hapoalim	22.88%	14.08%	1.17%

Analyst Recommendations

This is a summary of current ratings and target prices for Mid Penn Bancorp and Bank Hapoalim, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mid Penn Bancorp	0	1	4	0	2.80
Bank Hapoalim	0	1	0	1	3.00

Mid Penn Bancorp currently has a consensus target price of $39.67, suggesting a potential upside of 13.76%. Given Mid Penn Bancorp’s higher probable upside, analysts clearly believe Mid Penn Bancorp is more favorable than Bank Hapoalim.

Summary

Bank Hapoalim beats Mid Penn Bancorp on 9 of the 17 factors compared between the two stocks.

About Mid Penn Bancorp

Mid Penn Bancorp, Inc. operates as the bank holding company for Mid Penn Bank that provides 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, retail investment, wealth management, and insurance services; and 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.

About Bank Hapoalim

Bank Hapoalim B.M., together with its subsidiaries, provides various banking and financial products and services in Israel and internationally. It operates through Household, Private Banking, Small businesses and micro businesses, Mid-sized businesses, Large businesses, Institutional entities, and Financial management segments. The company offers account-management services, lending for various purposes, deposits, and savings plans, and capital-market service; housing loans; research and advisory services; and pension advisory and retirement planning services. It also provides products and services for the expansion of a business, advanced digital services, and a service center specializing in businesses; credit for routine operations and investment financing, guarantees, letters of credit, foreign trade, and transactions in financial and derivative instruments, as well as investment services in various channels, such as foreign currency, shekels, and securities. In addition, the company offers financial services, including foreign-trade financing, financing of working capital, financing of assets overseas, complex financing transactions, syndication, and credit-risk transfers; and financing of construction projects, granting credit to customers, and issuing guarantees to buyers of homes. Further, it provides managers of mutual funds, managers of investment portfolios, and managers of provident funds, study funds, and pension funds; trading activities; underwriting services; and brokerage and custody services. The company serves households, private-banking customers, foreign residents, small businesses, financial-asset managers, middle-market business clients, and large corporations. Bank Hapoalim B.M. was founded in 1921 and is based in Tel Aviv, Israel.