First Capital (NASDAQ:FCAP) vs. Mid-Southern Bancorp (NASDAQ:MSVB) Critical Analysis

Earnings and Valuation

This table compares First Capital and Mid-Southern Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Capital	$42.48 million	2.63	$12.79 million	$3.53	9.43
Mid-Southern Bancorp	$11.71 million	3.50	$1.46 million	$0.40	35.63

First Capital has higher revenue and earnings than Mid-Southern Bancorp. First Capital is trading at a lower price-to-earnings ratio than Mid-Southern Bancorp, indicating that it is currently the more affordable of the two stocks.

Dividends

First Capital pays an annual dividend of $1.16 per share and has a dividend yield of 3.5%. Mid-Southern Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.7%. First Capital pays out 32.9% of its earnings in the form of a dividend. Mid-Southern Bancorp pays out 60.0% 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. First Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares First Capital and Mid-Southern Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Capital	20.87%	10.82%	1.01%
Mid-Southern Bancorp	9.43%	3.12%	0.44%

Volatility and Risk

First Capital has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500. Comparatively, Mid-Southern Bancorp has a beta of 0.17, suggesting that its share price is 83% less volatile than the S&P 500.

Institutional and Insider Ownership

11.6% of First Capital shares are held by institutional investors. Comparatively, 10.1% of Mid-Southern Bancorp shares are held by institutional investors. 4.4% of First Capital shares are held by insiders. Comparatively, 10.2% of Mid-Southern Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

First Capital beats Mid-Southern Bancorp on 10 of the 13 factors compared between the two stocks.

About First Capital

First Capital, Inc. operates as the bank holding company for First Harrison Bank that provides various banking services to individuals and business customers. The company offers various deposit instruments, including non-interest-bearing checking accounts, negotiable order of withdrawal accounts, money market accounts, regular savings accounts, certificates of deposit, and retirement savings plans. It also provides residential mortgage loans, construction loans for residential and commercial properties, and commercial real estate loans, as well as commercial business loans. In addition, the company originates mortgage loans for sale in the secondary market and sells non-deposit investment products; and offers various secured or guaranteed consumer loans comprising automobile and truck loans, home equity loans, home improvement loans, boat loans, mobile home loans, credit cards and other personal loans, and loans secured by savings deposits, as well as unsecured consumer loans. First Capital, Inc. was founded in 1891 and is based in Corydon, Indiana.

About Mid-Southern Bancorp

Mid-Southern Bancorp, Inc. operates as the holding company for Mid-Southern Savings Bank, FSB that provides various banking products and services to individuals and business customers. It accepts various deposit products, including checking, savings, money market, and demand accounts, as well as certificates of deposit and term deposits. The company also offers loans secured by first mortgages on one- to four-family residences, including home equity loans and lines of credit; commercial and multifamily real estate loans; construction loans secured by single-family residences; commercial and multifamily real estate loans; land and lot loans; commercial business loans; consumer loans, including new and used manufactured homes, automobiles and truck, boats, and motorcycles and recreational vehicle loans; loans secured by savings deposits and other personal loans; and unsecured consumer loans. In addition, it holds and manages an investment securities portfolio. The company provides its products and services through its main office in Salem; and through its branch offices located in Mitchell and Orleans, Indiana, as well as through loan production offices located in New Albany, Indiana and Louisville, Kentucky. The company was founded in 1886 and is headquartered in Salem, Indiana.