Howard Stock Story

HBMD -  USA Stock  

USD 21.20  0.09  0.43%

As many rational traders are trying to avoid financial services space, it makes sense to digest Howard Bancorp MD a little further and understand how it stands against Merchants Bancorp and other similar entities. We are going to discuss some of the competitive aspects of both Howard and Merchants.
Published over a month ago
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Is Howard riskier than Merchants Bancorp (NASDAQ:MBIN)?
By analyzing existing primary indicators between Howard Bancorp and Merchants, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Merchants with a short position in Howard Bancorp. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Howard Bancorp has an asset utilization ratio of 8.39 percent. This indicates that the company is making $0.0839 for each dollar of assets. An increasing asset utilization means that Howard Bancorp MD is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Howard or Bank First is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Howard Bancorp's Liquidity

Howard Bancorp financial leverage refers to using borrowed capital as a funding source to finance Howard Bancorp MD ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Howard Bancorp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Howard Bancorp's total debt and its cash.

Correlation Between Howard and Bank First National

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Howard Bancorp together with similar or unrelated positions with a negative correlation. For example, you can also add Bank First to your portfolio. If Bank First is not perfectly correlated to Howard Bancorp it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Howard Bancorp for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between HBMD and BFC for more information.

Breaking it down

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now analyze Howard Bancorp revenue. Based on the latest financial disclosure, Howard Bancorp MD reported 79.43 M of revenue. This is 99.29% lower than that of the Financial Services sector and significantly higher than that of the Banks—Regional industry. The revenue for all United States stocks is 99.16% higher than that of Howard Bancorp. As for Merchants Bancorp we see revenue of 398.76 M, which is much higher than that of the Banks—Regional

Howard79.43 Million
Sector0.0
Merchants398.76 Million
Howard
Sector
398.8 M
Merchants

Howard Bancorp has 93 percent likelihood to dip below $21 in November

The downside variance is down to 1.76 as of today. Howard Bancorp MD has relatively low volatility with skewness of 0.36 and kurtosis of -0.12. However, we advise all investors to independently investigate Howard Bancorp MD to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Howard Bancorp's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Howard Bancorp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Final Takeaway

Although some firms in the banks—regional industry are either recovering or due for a correction, Howard Bancorp may not be performing as strong as the other in terms of long-term growth potentials. The bottom line, as of the 20th of October 2021, we believe Howard Bancorp is currently undervalued. It responds to the market and projects below average probability of financial unrest in the next two years. Our overall 90 days buy vs. sell advice on the firm is Strong Buy.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Howard Bancorp MD. Please refer to our Terms of Use for any information regarding our disclosure principles.

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