Analyzing SVB Financial Group (OTCMKTS:SIVBQ) & MidWestOne Financial Group (NASDAQ:MOFG)

SVB Financial Group (OTCMKTS:SIVBQ) and MidWestOne Financial Group (NASDAQ:MOFG) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, institutional ownership, profitability and earnings.

Institutional and Insider Ownership

8.7% of SVB Financial Group shares are held by institutional investors. Comparatively, 65.4% of MidWestOne Financial Group shares are held by institutional investors. 0.6% of SVB Financial Group shares are held by insiders. Comparatively, 2.8% of MidWestOne Financial Group shares are held 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.

Risk & Volatility

SVB Financial Group has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, MidWestOne Financial Group has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for SVB Financial Group and MidWestOne Financial Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SVB Financial Group	0	0	0	0	N/A
MidWestOne Financial Group	0	4	0	0	2.00

MidWestOne Financial Group has a consensus target price of $26.38, indicating a potential downside of 6.90%. Given MidWestOne Financial Group’s higher probable upside, analysts plainly believe MidWestOne Financial Group is more favorable than SVB Financial Group.

Earnings and Valuation

This table compares SVB Financial Group and MidWestOne Financial Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SVB Financial Group	$7.40 billion	0.00	$1.67 billion	N/A	N/A
MidWestOne Financial Group	$183.24 million	2.44	$20.86 million	$1.44	19.67

SVB Financial Group has higher revenue and earnings than MidWestOne Financial Group.

Profitability

This table compares SVB Financial Group and MidWestOne Financial Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SVB Financial Group	N/A	N/A	N/A
MidWestOne Financial Group	9.79%	5.27%	0.42%

Summary

MidWestOne Financial Group beats SVB Financial Group on 8 of the 10 factors compared between the two stocks.

About SVB Financial Group

SVB Financial Group, a diversified financial services company, offers various banking and financial products and services. It operates through four segments: Silicon Valley Bank, SVB Private, SVB Capital, and SVB Securities. The Silicon Valley Bank segment provides commercial banking products and services, including credit, treasury management, foreign exchange, trade finance, and other financial products and services. This segment also offers traditional term, growth capital term, and equipment loans, asset-based loans, revolving lines of credit, warehouse facilities, recurring revenue and acquisition finance facilities, mezzanine lending, corporate working capital facilities, and credit card programs; treasury management products and services; business and analysis checking, money market, multi-currency, in-country bank, and sweep accounts; receivables services, which include merchant services, remote capture, lockbox, and fraud control services; wire transfer and automated clearing house payment services; business bill pay, credit and debit cards, account analysis, and disbursement services. In addition, it offers foreign exchange and trade finance products and services; letters of credit; and investment services and solutions. The SVB Private segment offers mortgages, home equity lines of credit, restricted and private stock loans, capital call lines of credit, and other secured and unsecured lending products; planning-based financial strategies, wealth management, family office, financial planning, tax planning, and trust services; and real estate secured loans. The SVB Capital segment provides venture capital investment services. The SVB Securities segment provides investment banking services; products and services, including capital raising, merger and acquisition advisory, equity research, and sales and trading. The company was founded in 1983 and is headquartered in Santa Clara, California. On March 17, 2023, SVB Financial Group, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York.

About MidWestOne Financial Group

MidWestOne Financial Group, Inc. operates as the bank holding company for MidWestOne Bank that provides commercial and retail banking products and services to individuals, businesses, governmental units, and institutional customers. It offers range of deposit products, including noninterest bearing and interest bearing demand deposits, savings, money market, and time deposits accounts. The company also provides commercial, real estate, agricultural, credit card, and consumer loans; and financing arrangements, such as brokered deposits, term debt, subordinated debt, and equity. In addition, it offers trust and investment services comprising administering estates, trusts, and conservatorships; property and farm management, investment advisory, retail securities brokerage, financial planning, and custodial services; and licensed brokers services. Further, the company provides online and mobile banking, debit cards, automated teller machines, and safe deposit boxes. MidWestOne Financial Group, Inc. was founded in 1934 and is headquartered in Iowa City, Iowa.