Financial Comparison: Signature Bank (NASDAQ:SBNY) and Midland States Bancorp (NASDAQ:MSBI)

Midland States Bancorp (NASDAQ:MSBI) and Signature Bank (NASDAQ:SBNY) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.

Earnings and Valuation

This table compares Midland States Bancorp and Signature Bank”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Midland States Bancorp	$294.10 million	1.70	$75.46 million	$2.94	7.93
Signature Bank	$3.71 billion	N/A	$1.34 billion	N/A	N/A

Signature Bank has higher revenue and earnings than Midland States Bancorp.

Risk and Volatility

Midland States Bancorp has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, Signature Bank has a beta of 9.47, meaning that its stock price is 847% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Midland States Bancorp and Signature Bank, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Midland States Bancorp	0	3	0	0	2.00
Signature Bank	0	0	0	0	N/A

Midland States Bancorp currently has a consensus target price of $26.00, indicating a potential upside of 11.49%. Given Midland States Bancorp’s higher possible upside, equities research analysts plainly believe Midland States Bancorp is more favorable than Signature Bank.

Institutional & Insider Ownership

60.9% of Midland States Bancorp shares are held by institutional investors. Comparatively, 11.1% of Signature Bank shares are held by institutional investors. 5.6% of Midland States Bancorp shares are held by insiders. Comparatively, 1.5% of Signature Bank shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Midland States Bancorp and Signature Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Midland States Bancorp	12.10%	9.24%	0.79%
Signature Bank	N/A	N/A	N/A

Summary

Midland States Bancorp beats Signature Bank on 6 of the 9 factors compared between the two stocks.

About Midland States Bancorp

Midland States Bancorp, Inc. operates as a financial holding company for Midland States Bank that provides various banking products and services to individuals, businesses, municipalities, and other entities. It operates through Banking, Wealth Management, and Other segments. The company provides a range of financial products and services to consumers and businesses, including commercial loans to finance agricultural equipment and production; and commercial real estate loans for owner occupied offices, warehouses and production facilities, office buildings, hotels, mixed-use residential and commercial facilities, retail centers, multifamily properties, and assisted living facilities. In addition, it offers construction and land development loans, such as real estate investment properties and residential developments, and lesser extent loans; and residential real estate loans, which includes first and second mortgage loans, and home equity lines of credit consisting of loans secured by first or second mortgages on primarily owner occupied primary residences. The company also provides 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; and commercial equipment leasing programs for manufacturing, construction, transportation, and healthcare industries. Further, it offers merchant services; deposit products, including checking, time, savings, money market, and certificates of deposit, as well as sweep accounts; letters of credit; and trust and wealth management services, such as financial and estate planning, trustee and custodial, investment management, tax, insurance, and business planning, corporate retirement plan consulting and administration, and retail brokerage services. The company was founded in 1881 and is headquartered in Effingham, Illinois.

About Signature Bank

As of March 12, 2023, Signature Bank went out of business. Previously, the company provided digital assets banking services and comprised of certain loan portfolios. The company was incorporated in 2000 and is based in New York, New York. Signature Bank now trades on OTCPK.