Solera National Bancorp (OTCMKTS:SLRK) versus SmartFinancial (OTCMKTS:SMBK) Critical Contrast

Solera National Bancorp (OTCMKTS:SLRK) and SmartFinancial (NASDAQ:SMBK) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.

Dividends

SmartFinancial pays an annual dividend of $0.20 per share and has a dividend yield of 0.9%. Solera National Bancorp does not pay a dividend. SmartFinancial pays out 12.9% of its earnings in the form of a dividend.

Insider and Institutional Ownership

1.3% of Solera National Bancorp shares are owned by institutional investors. Comparatively, 40.6% of SmartFinancial shares are owned by institutional investors. 17.4% of Solera National Bancorp shares are owned by company insiders. Comparatively, 9.8% of SmartFinancial shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Solera National Bancorp and SmartFinancial’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Solera National Bancorp $9.05 million 5.29 $2.23 million N/A N/A
SmartFinancial $98.76 million 3.22 $18.10 million $1.55 14.71

SmartFinancial has higher revenue and earnings than Solera National Bancorp.

Risk and Volatility

Solera National Bancorp has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500. Comparatively, SmartFinancial has a beta of 0.71, meaning that its share price is 29% less volatile than the S&P 500.

Profitability

This table compares Solera National Bancorp and SmartFinancial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Solera National Bancorp 31.58% N/A N/A
SmartFinancial 21.46% 7.81% 0.98%

Analyst Recommendations

This is a summary of recent recommendations for Solera National Bancorp and SmartFinancial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Solera National Bancorp 0 0 0 0 N/A
SmartFinancial 0 2 3 0 2.60

SmartFinancial has a consensus price target of $24.00, suggesting a potential upside of 5.26%. Given SmartFinancial’s higher probable upside, analysts plainly believe SmartFinancial is more favorable than Solera National Bancorp.

Summary

SmartFinancial beats Solera National Bancorp on 10 of the 14 factors compared between the two stocks.

Solera National Bancorp Company Profile

Solera National Bancorp, Inc. operates as the bank holding company for Solera National Bank that provides commercial and consumer banking services to small and medium-sized businesses, licensed professionals, and individuals in the United States. The company offers deposit products, including checking and savings accounts, and certificates of deposits; and business loan products, such as real estate secured loans, construction loans, small business administration loans, business lines of credit, and equipment financing. It also provides online banking, account analysis, combined account analysis, commercial sweep, remote deposit, ACH origination, payroll direct deposit, merchant, fraud, business debit card, and cash management services. The company was founded in 2006 and is headquartered in Lakewood, Colorado.

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.

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