SmartFinancial (NASDAQ:SMBK) and Banc of California (NYSE:BANC) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, analyst recommendations, valuation and profitability.
This is a breakdown of current ratings and price targets for SmartFinancial and Banc of California, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Banc of California||0||4||0||0||2.00|
SmartFinancial presently has a consensus target price of $23.50, indicating a potential upside of 15.37%. Banc of California has a consensus target price of $17.00, indicating a potential upside of 24.09%. Given Banc of California’s higher probable upside, analysts plainly believe Banc of California is more favorable than SmartFinancial.
Valuation and Earnings
This table compares SmartFinancial and Banc of California’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|SmartFinancial||$98.76 million||2.88||$18.10 million||$1.55||13.14|
|Banc of California||$446.71 million||1.56||$45.47 million||$0.49||27.96|
Banc of California has higher revenue and earnings than SmartFinancial. SmartFinancial is trading at a lower price-to-earnings ratio than Banc of California, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
40.4% of SmartFinancial shares are owned by institutional investors. Comparatively, 98.8% of Banc of California shares are owned by institutional investors. 9.8% of SmartFinancial shares are owned by insiders. Comparatively, 11.1% of Banc of California shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Banc of California pays an annual dividend of $0.24 per share and has a dividend yield of 1.8%. SmartFinancial does not pay a dividend. Banc of California pays out 49.0% of its earnings in the form of a dividend.
This table compares SmartFinancial and Banc of California’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Banc of California||10.28%||7.94%||0.57%|
Volatility & Risk
SmartFinancial has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, Banc of California has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500.
Banc of California beats SmartFinancial on 9 of the 16 factors compared between the two stocks.
SmartFinancial Company Profile
SmartFinancial, Inc. operates as the bank holding company for SmartBank that provides various financial services to individuals and corporate customers in Tennessee, Alabama, Florida, and Georgia. The company offers various deposit products, including interest bearing and non-interest bearing checking accounts, savings accounts, money market accounts, individual retirement accounts, and certificates of deposit. It also provides commercial real estate loans, consumer real estate loans, and construction and land development loans; commercial and industrial loans, including commercial, financial, and agricultural loans; and consumer and other loans, such as direct consumer installment loans, overdrafts and other revolving credit loans, and educational loans. In addition, the company offers Internet and mobile banking services. As of December 31, 2018, it operated through 29 full-service branches located in Tennessee, Alabama, and Florida; and 2 loan production offices, 2 mortgage loan production offices, and 2 service centers. SmartFinancial, Inc. is headquartered in Knoxville, Tennessee.
Banc of California Company Profile
Banc of California, Inc. operates as the bank holding company for Banc of California, National Association that provides banking products and services in the United States. The company offers deposit products, including checking, savings, money market, retirement, and interest and noninterest-bearing demand accounts, as well as certificates of deposits. It also provides various commercial and consumer loan products, such as commercial and industrial loans; commercial real estate loans; multifamily loans; construction and renovation loans; single family residential mortgage loans; warehouse loans; asset, insurance, or security-backed loans; home equity lines of credit; consumer and business lines of credit; small business administration loans; and other consumer loans. In addition, the company offers automated bill payment, cash and treasury management, foreign exchange, card payment, remote and mobile deposit capture, automated clearing house origination, wire transfer, direct deposit, and Internet banking services; and master demand accounts, interest rate swaps, and safe deposit boxes. As of December 31, 2018, it operated 32 full service branches in San Diego, Orange, Santa Barbara, and Los Angeles counties in California. The company was formerly known as First PacTrust Bancorp, Inc. and changed its name to Banc of California, Inc. in July 2013. Banc of California, Inc. was founded in 1941 and is headquartered in Santa Ana, California.
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