BY vs MBWM vs MGYR

For growth investors, Magyar Bancorp, Inc.

(MGYR) is the stronger pick with 12. 1% revenue growth year-over-year, versus 1. 3% for Byline Bancorp, Inc. (BY). Mercantile Bank Corporation (MBWM) offers the better valuation at 9. 5x trailing P/E (9. 5x forward), making it the more compelling value choice. Analysts rate Mercantile Bank Corporation (MBWM) a "Buy" — based on 7 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Mercantile Bank Corporation (MBWM) is the cheapest at 9.

5x versus Byline Bancorp, Inc. at 11. 6x. On forward P/E, Mercantile Bank Corporation is actually cheaper at 9. 5x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Byline Bancorp, Inc. wins at 0. 42x versus Mercantile Bank Corporation's 0. 63x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Mercantile Bank Corporation (MBWM) delivered a total return of +78.

4%, compared to +51. 1% for Byline Bancorp, Inc. (BY). Over 10 years, the gap is even starker: MBWM returned +178. 2% versus BY's +77. 3%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Magyar Bancorp, Inc.

(MGYR) is the lower-risk stock at 0. 28β versus Mercantile Bank Corporation's 0. 87β — meaning MBWM is approximately 211% more volatile than MGYR relative to the S&P 500. On balance sheet safety, Magyar Bancorp, Inc. (MGYR) carries a lower debt/equity ratio of 41% versus 114% for Mercantile Bank Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Magyar Bancorp, Inc.

(MGYR) is pulling ahead at 12. 1% versus 1. 3% for Byline Bancorp, Inc. (BY). On earnings-per-share growth, the picture is similar: Magyar Bancorp, Inc. grew EPS 26. 8% year-over-year, compared to 5. 1% for Byline Bancorp, Inc.. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Mercantile Bank Corporation (MBWM) is the more profitable company, earning 23.

9% net margin versus 16. 7% for Magyar Bancorp, Inc. — meaning it keeps 23. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: BY leads at 29. 1% versus 23. 6% for MGYR. At the gross margin level — before operating expenses — BY leads at 66. 1%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Byline Bancorp, Inc. (BY) is the more undervalued stock at a PEG of 0. 42x versus Mercantile Bank Corporation's 0. 63x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Mercantile Bank Corporation (MBWM) trades at 9. 5x forward P/E versus 10. 3x for Byline Bancorp, Inc. — 0. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for BY: 19. 8% to $40. 00.

All stocks in this comparison pay dividends.

Mercantile Bank Corporation (MBWM) offers the highest yield at 2. 8%, versus 1. 2% for Byline Bancorp, Inc. (BY).

For long-horizon retirement investors, Magyar Bancorp, Inc.

(MGYR) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 28), 1. 7% yield, +125. 8% 10Y return). Both have compounded well over 10 years (MGYR: +125. 8%, BY: +77. 3%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.