Merchants Bancorp vs Live Oak

This page compares Merchants Bancorp and Live Oak, outlining how each operates, performs, and positions itself in the market. It covers business models, financial performance, and market context in a neutral, accessible manner. Educational content, not financial advice.

This page compares Merchants Bancorp and Live Oak, outlining how each operates, performs, and positions itself in the market. It covers business models, financial performance, and market context in a ...

Comparison Snapshot

Key Financial Metrics

MBIN

Metric

LOB

$1.57B

Market Cap

$1.68B

15.65%

Potential Profit

9.62%

Buy

Analyst Rating

Buy

Investment Analysis

Merchants Bancorp

MBIN

Pros

Merchants Bancorp operates multiple business segments including multi-family mortgage banking, mortgage warehousing, and traditional community banking, offering diversification.
The company focuses on government-sponsored mortgages for multi-family and healthcare facilities, providing relatively stable revenue streams.
Merchants Bancorp has a presence in retail and correspondent residential mortgage banking, enabling it to serve a broad consumer and business customer base.

Considerations

Merchants Bancorp's stock price range suggests volatility with a 52-week low of around $27.25 and a high of $43.82, indicating some market uncertainty.
The company faces industry risks related to mortgage lending and interest rate fluctuations impacting its government-sponsored loan portfolios.
Limited recent public financial detail and market analysis make evaluation of profitability and growth prospects less transparent compared to peers.

Live Oak

LOB

Pros

Live Oak Bancshares demonstrates strong profitability with a net profit margin of 15.8% and a return on equity of 24.9%, indicating efficient management.
It specializes in lending to small businesses through industry-specific expertise and government-backed loan programs, supporting stable loan quality.
The company benefits from digital transformation trends and small business formation as growth drivers and exhibits a solid financial health score.

Considerations

Live Oak’s third quarter 2025 earnings and revenues missed analyst expectations, reflecting possible near-term performance challenges.
Rising regulatory costs and fintech competition present significant headwinds that may pressure margins and growth over time.
The company does not currently pay dividends, which may limit income-oriented investor appeal despite growth potential.

About The Companies

Merchants Bancorp (MBIN)

Merchants Bancorp (MBIN) is the holding company for an Indiana-based regional bank that provides commercial and consumer banking services, including lending, deposit accounts and wealth-management solutions. With a market capitalisation around $1.47 billion, MBIN is sized as a small regional bank where net interest margin, loan growth and credit quality typically drive results. Investors often watch sensitivity to interest-rate moves, deposit trends and local economic conditions in its primary markets. The company may benefit from steady business banking relationships and modest commercial real-estate exposure, while facing competition from larger banks and fintechs. Regulatory capital, asset quality and funding costs are key indicators to monitor. This summary is educational and not personalised advice; bank stocks can be volatile and past performance does not guarantee future returns. Consider your risk tolerance and investment horizon before acting, and consult a financial adviser for specific guidance.

Live Oak (LOB)

Live Oak Bancshares is the bank holding company for Live Oak Bank, a financial institution with a distinct focus. Rather than operating like a traditional high street bank, it specialises in providing loans and deposit services to small businesses throughout the United States. Its model is built on a national online platform, which allows it to reach customers efficiently without a large physical branch network. Beyond its core banking operations, the company holds several subsidiaries. These include Live Oak Ventures, which invests in financial technology companies, and Government Loan Solutions, which offers consultancy services for government-guaranteed lending. This structure positions Live Oak Bancshares as a modern, specialised player in the financial services industry. As with any investment, its value can go down as well as up, and past performance is not a guide to the future.

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Comparison Snapshot