Critical Comparison: Western Alliance Bancorporation (NYSE:WAL) vs. MVB Financial (NASDAQ:MVBF)

Western Alliance Bancorporation (NYSE:WAL) and MVB Financial (NASDAQ:MVBF) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, profitability, valuation and risk.

Earnings and Valuation

This table compares Western Alliance Bancorporation and MVB Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Western Alliance Bancorporation	$2.28 billion	4.17	$722.40 million	$6.86	12.58
MVB Financial	$147.71 million	1.72	$31.23 million	$1.87	10.52

Western Alliance Bancorporation has higher revenue and earnings than MVB Financial. MVB Financial is trading at a lower price-to-earnings ratio than Western Alliance Bancorporation, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Western Alliance Bancorporation has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500. Comparatively, MVB Financial has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Western Alliance Bancorporation and MVB Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Western Alliance Bancorporation	0	2	13	0	2.87
MVB Financial	0	1	2	0	2.67

Western Alliance Bancorporation currently has a consensus target price of $85.07, indicating a potential downside of 1.46%. MVB Financial has a consensus target price of $25.00, indicating a potential upside of 27.10%. Given MVB Financial’s higher probable upside, analysts plainly believe MVB Financial is more favorable than Western Alliance Bancorporation.

Institutional and Insider Ownership

79.2% of Western Alliance Bancorporation shares are held by institutional investors. Comparatively, 52.7% of MVB Financial shares are held by institutional investors. 2.8% of Western Alliance Bancorporation shares are held by insiders. Comparatively, 11.1% of MVB Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Western Alliance Bancorporation and MVB Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Western Alliance Bancorporation	15.54%	13.98%	1.08%
MVB Financial	9.28%	7.08%	0.60%

Dividends

Western Alliance Bancorporation pays an annual dividend of $1.48 per share and has a dividend yield of 1.7%. MVB Financial pays an annual dividend of $0.68 per share and has a dividend yield of 3.5%. Western Alliance Bancorporation pays out 21.6% of its earnings in the form of a dividend. MVB Financial pays out 36.4% 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.

Summary

Western Alliance Bancorporation beats MVB Financial on 13 of the 16 factors compared between the two stocks.

About Western Alliance Bancorporation

Western Alliance Bancorporation operates as the bank holding company for Western Alliance Bank that provides various banking products and related services primarily in Arizona, California, and Nevada. It operates through Commercial and Consumer Related segments. The company offers deposit products, including checking, savings, and money market accounts, as well as fixed-rate and fixed maturity certificates of deposit accounts; demand deposits; and treasury management and residential mortgage products and services. It also provides commercial and industrial loan products, such as working capital lines of credit, loans to technology companies, inventory and accounts receivable lines, mortgage warehouse lines, equipment loans and leases, and other commercial loans; commercial real estate loans, which are secured by multi-family residential properties, professional offices, industrial facilities, retail centers, hotels, and other commercial properties; construction and land development loans for single family and multi-family residential projects, industrial/warehouse properties, office buildings, retail centers, medical office facilities, and residential lot developments; and consumer loans. In addition, the company provides other financial services, such as internet banking, wire transfers, electronic bill payment and presentment, funds transfer and other digital payment offerings, lock box services, courier, and cash management services. Further, the company holds certain investment securities, municipal and non-profit loans, and leases; invests primarily in low-income housing tax credits and small business investment corporations; and holds certain real estate loans and related securities. Western Alliance Bancorporation was founded in 1994 and is headquartered in Phoenix, Arizona.

About MVB Financial

MVB Financial Corp. operates as bank holding company for MVB Bank, Inc that provides financial services to individuals and corporate clients. The company operates through three segments: CoRe Banking, Mortgage Banking, and The Financial Holding Company. It offers various demand deposit accounts, savings accounts, money market accounts, and certificates of deposit; and commercial, consumer, and real estate mortgage loans, as well as lines of credit. The company also provides debit cards; cashier's checks; safe deposit rental facilities; and non-deposit investment services, as well as financial technology (Fintech) banking services. In addition, it offers fintech solutions for the gaming, payments, banking-as-a-service, and digital asset sectors; fraud prevention services for merchants, credit agencies, Fintech companies, and other vendors; and digital products and web and mobile applications for forward-thinking community banks, credit unions, digital banks, and Fintech companies. It operates full-service branches in West Virginia and Virginia. MVB Financial Corp. was founded in 1997 and is based in Fairmont, West Virginia.