Head-To-Head Survey: Alerus Financial (NASDAQ:ALRS) and SouthCrest Financial Group (OTCMKTS:SCSG)

SouthCrest Financial Group (OTCMKTS:SCSG) and Alerus Financial (NASDAQ:ALRS) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Institutional & Insider Ownership

51.3% of Alerus Financial shares are held by institutional investors. 5.6% of Alerus Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares SouthCrest Financial Group and Alerus Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SouthCrest Financial Group	N/A	N/A	N/A
Alerus Financial	2.39%	7.25%	0.64%

Earnings and Valuation

This table compares SouthCrest Financial Group and Alerus Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SouthCrest Financial Group	N/A	N/A	N/A	N/A	N/A
Alerus Financial	$167.96 million	2.63	$11.70 million	$0.49	45.53

Alerus Financial has higher revenue and earnings than SouthCrest Financial Group.

Analyst Ratings

This is a summary of recent ratings and recommmendations for SouthCrest Financial Group and Alerus Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SouthCrest Financial Group	0	0	0	0	N/A
Alerus Financial	0	3	2	0	2.40

Alerus Financial has a consensus price target of $23.40, suggesting a potential upside of 4.89%. Given Alerus Financial’s higher possible upside, analysts plainly believe Alerus Financial is more favorable than SouthCrest Financial Group.

Summary

Alerus Financial beats SouthCrest Financial Group on 8 of the 8 factors compared between the two stocks.

About SouthCrest Financial Group

SouthCrest Financial Group, Inc. operates as the bank holding company for SouthCrest Bank, N.A. that provides various banking products and services. It offers checking, savings, and money market accounts; and certificates of deposit. The company also provides personal loans for cars, boats, recreational vehicles, and other purchases; home equity lines of credit; loans on investment properties; owner occupied real estate, acquisition construction and development, professional practice acquisition, equipment and inventory, construction to permanent, and investment real estate loans; and working capital and lines of credit. In addition, it offers credit cards; remote deposit capture, positive pay, ACH, online wires, merchant, and reorder checks services; and online banking, online bill pay, mobile banking and deposit, and telephone banking services. The company serves retail, private, entrepreneurial, high-net-worth, and commercial customers. It operates through 9 branches in Georgia. SouthCrest Financial Group, Inc. was founded in 1910 and is headquartered in Atlanta, Georgia.

About Alerus Financial

Alerus Financial Corporation operates as the bank holding company for Alerus Financial, National Association that engages in the provision of various financial services to businesses and consumers. The company operates in four segments: Banking, Mortgage, Retirement and Benefit Services, and Wealth Management. It offers various deposit products, including demand deposits, interest-bearing transaction accounts, money market accounts, time and savings deposits, checking accounts, and certificates of deposit; and treasury management products, including electronic receivables management, remote deposit capture, cash vault services, merchant services, and other cash management services. The company also provides commercial loans, business term loans, lines of credit, and commercial real estate loans, as well as construction and land development loans; consumer lending products, including residential first mortgage loans; installment loans and lines of credit; and second mortgage loans. In addition, it offers retirement plan administration and investment advisory services, employee stock ownership plan, fiduciary services, payroll, health savings accounts, and other benefit services, as well as individual retirement accounts; and financial planning, investment management, personal and corporate trust, estate administration, and custody services. Further, the company provides debit and credit cards, online banking, mobile banking/wallet, payment, private banking, payroll accounts, flex spending accounts, administration, and government health insurance program services. It offers banking services in North Dakota, Minnesota, and Arizona; and retirement and benefit plans through offices located in Michigan, Minnesota, and Colorado. The company was formerly known as First National Bank North Dakota and changed its name to Alerus Financial Corporation in 2000. Alerus Financial Corporation was founded in 1879 and is headquartered in Grand Forks, North Dakota.