Head to Head Review: Randolph Bancorp (NASDAQ:RNDB) and Southern National Banc. of Virginia (NASDAQ:SONA)

Southern National Banc. of Virginia (NASDAQ:SONA) and Randolph Bancorp (NASDAQ:RNDB) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, dividends, profitability and risk.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Southern National Banc. of Virginia and Randolph Bancorp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Southern National Banc. of Virginia 0 1 0 0 2.00
Randolph Bancorp 0 0 1 0 3.00

Randolph Bancorp has a consensus price target of $12.00, indicating a potential upside of 21.83%. Given Randolph Bancorp’s stronger consensus rating and higher probable upside, analysts clearly believe Randolph Bancorp is more favorable than Southern National Banc. of Virginia.

Risk & Volatility

Southern National Banc. of Virginia has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500. Comparatively, Randolph Bancorp has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500.

Earnings and Valuation

This table compares Southern National Banc. of Virginia and Randolph Bancorp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Southern National Banc. of Virginia $133.11 million 1.72 $33.17 million $1.48 6.38
Randolph Bancorp $46.89 million 1.15 $3.43 million N/A N/A

Southern National Banc. of Virginia has higher revenue and earnings than Randolph Bancorp.

Profitability

This table compares Southern National Banc. of Virginia and Randolph Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Southern National Banc. of Virginia 20.74% 8.45% 1.15%
Randolph Bancorp 5.32% 5.58% 0.68%

Insider & Institutional Ownership

71.9% of Southern National Banc. of Virginia shares are held by institutional investors. Comparatively, 35.6% of Randolph Bancorp shares are held by institutional investors. 5.9% of Southern National Banc. of Virginia shares are held by company insiders. Comparatively, 8.3% of Randolph Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Southern National Banc. of Virginia beats Randolph Bancorp on 8 of the 13 factors compared between the two stocks.

About Southern National Banc. of Virginia

Southern National Bancorp of Virginia, Inc. operates as the bank holding company for Sonabank that provides commercial banking services to middle market corporate clients and retail clients in the United States. Its deposit products include noninterest-bearing and interest-bearing checking, commercial checking, money market, and savings accounts, as well as certificates of deposit. The company's loan portfolio comprises commercial mortgage and non-mortgage loans, including commercial real estate loans, construction to permanent loans, development and builder loans, accounts receivable financing, lines of credit, equipment and vehicle loans, leasing, and commercial overdraft protection; construction loans for commercial, multifamily, and other non-residential properties; commercial business loans, such as lines of credit, revolving credit facilities, demand loans, term loans, equipment loans, small business administration loans, stand-by letters of credit, and unsecured loans; residential mortgage lending; and secured and unsecured consumer loans. It also offers cash management services comprising investment/sweep, zero balance, and controlled disbursement accounts; and wire transfer, employer/payroll processing, night depository, lockbox, depository transfer, merchant, ACH origination, check 21 processing, asset based lending, and mobile banking application services. In addition, the company provides other consumer/retail products and services that include debit and credit cards, ATM services, travelers' checks, notary services, and online banking services. As of December 31, 2018, it had 38 full-service retail branches in Virginia and 7 full-service retail branches in Maryland. The company was founded in 2004 and is headquartered in McLean, Virginia.

About Randolph Bancorp

Randolph Bancorp, Inc. operates as the bank holding company for Envision Bank that provides financial services to individuals, families, and small to mid-size businesses in Massachusetts, Rhode Island, and southern New Hampshire. The company accepts checking, NOW, money market, and savings accounts, as well as certificate of deposits and IRAs. It also offers one- to four-family residential mortgage, commercial real estate, commercial and industrial, construction, and consumer loans; home equity loans and lines of credit; and investment securities. In addition, the company provides remote deposit capture products for business customers to meet their online banking needs. As of February 27, 2018, it operated six retail branch locations and loan operations centers in Andover and North Attleboro, Massachusetts; and five loan production offices in eastern Massachusetts. The company was founded in 1851 and is based in Stoughton, Massachusetts. Randolph Bancorp, Inc. is a subsidiary of Randolph Bancorp (MHC).

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