Contrasting Magyar Bancorp (MGYR) and Its Peers

Magyar Bancorp (NASDAQ:MGYR) is one of 919 public companies in the “Banks” industry, but how does it weigh in compared to its rivals? We will compare Magyar Bancorp to related companies based on the strength of its analyst recommendations, institutional ownership, dividends, risk, profitability, earnings and valuation.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Magyar Bancorp and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Magyar Bancorp	0	1	0	0	2.00
Magyar Bancorp Competitors	7494	30253	27858	1490	2.35

As a group, “Banks” companies have a potential upside of 14.11%. Given Magyar Bancorp’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Magyar Bancorp has less favorable growth aspects than its rivals.

Profitability

This table compares Magyar Bancorp and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Magyar Bancorp	19.74%	10.11%	1.19%
Magyar Bancorp Competitors	15.63%	9.41%	0.93%

Institutional and Insider Ownership

46.3% of Magyar Bancorp shares are owned by institutional investors. Comparatively, 48.0% of shares of all “Banks” companies are owned by institutional investors. 11.1% of Magyar Bancorp shares are owned by insiders. Comparatively, 9.7% of shares of all “Banks” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Magyar Bancorp and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Magyar Bancorp	$63.60 million	$12.56 million	10.94
Magyar Bancorp Competitors	$54.82 billion	$2.42 billion	21.36

Magyar Bancorp’s rivals have higher revenue and earnings than Magyar Bancorp. Magyar Bancorp is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

Magyar Bancorp has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500. Comparatively, Magyar Bancorp’s rivals have a beta of 0.61, indicating that their average share price is 39% less volatile than the S&P 500.

Dividends

Magyar Bancorp pays an annual dividend of $0.48 per share and has a dividend yield of 2.2%. Magyar Bancorp pays out 24.1% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 8.9% and pay out 28.9% of their earnings in the form of a dividend. Magyar Bancorp has increased its dividend for 3 consecutive years.

Summary

Magyar Bancorp rivals beat Magyar Bancorp on 10 of the 15 factors compared.

About Magyar Bancorp

Magyar Bancorp, Inc. is the holding company for Magyar Bank, a community bank headquartered in New Brunswick, New Jersey. Through its banking subsidiary, the company provides deposit, lending and other financial services to individuals, families and businesses. Magyar Bank’s products and services include checking and savings accounts, certificates of deposit, residential mortgages, home equity loans and lines of credit, consumer loans, commercial real estate financing and business loans. The bank also offers electronic banking services, including online and mobile banking, along with related payment and account-management tools.