Analyzing IA 1ST BANCSHAR/SH (OTCMKTS:IOFB) and Live Oak Bancshares (OTCMKTS:LOB)

Live Oak Bancshares (NASDAQ:LOB) and IA 1ST BANCSHAR/SH (OTCMKTS:IOFB) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, institutional ownership, valuation and risk.

Dividends

Live Oak Bancshares pays an annual dividend of $0.12 per share and has a dividend yield of 0.9%. IA 1ST BANCSHAR/SH pays an annual dividend of $1.16 per share and has a dividend yield of 3.9%. Live Oak Bancshares pays out 27.3% of its earnings in the form of a dividend. Live Oak Bancshares has increased its dividend for 3 consecutive years.

Analyst Recommendations

This is a breakdown of current ratings for Live Oak Bancshares and IA 1ST BANCSHAR/SH, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Live Oak Bancshares 0 1 1 0 2.50
IA 1ST BANCSHAR/SH 0 0 0 0 N/A

Live Oak Bancshares presently has a consensus target price of $17.00, indicating a potential upside of 20.61%. Given Live Oak Bancshares’ higher probable upside, equities research analysts plainly believe Live Oak Bancshares is more favorable than IA 1ST BANCSHAR/SH.

Volatility & Risk

Live Oak Bancshares has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500. Comparatively, IA 1ST BANCSHAR/SH has a beta of 0.14, meaning that its stock price is 86% less volatile than the S&P 500.

Profitability

This table compares Live Oak Bancshares and IA 1ST BANCSHAR/SH’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Live Oak Bancshares 2.67% 1.72% 0.19%
IA 1ST BANCSHAR/SH N/A N/A N/A

Institutional and Insider Ownership

43.0% of Live Oak Bancshares shares are owned by institutional investors. Comparatively, 6.1% of IA 1ST BANCSHAR/SH shares are owned by institutional investors. 25.1% of Live Oak Bancshares shares are owned by company insiders. Comparatively, 12.8% of IA 1ST BANCSHAR/SH shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Live Oak Bancshares and IA 1ST BANCSHAR/SH’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Live Oak Bancshares $295.86 million 1.93 $18.03 million $0.44 32.03
IA 1ST BANCSHAR/SH N/A N/A $3.48 million N/A N/A

Live Oak Bancshares has higher revenue and earnings than IA 1ST BANCSHAR/SH.

Summary

Live Oak Bancshares beats IA 1ST BANCSHAR/SH on 12 of the 14 factors compared between the two stocks.

Live Oak Bancshares Company Profile

Live Oak Bancshares, Inc. operates as the bank holding company for Live Oak Banking Company that provides various commercial banking products and services to individuals, small businesses, and professionals in North Carolina, the United States. The company accepts various deposit products, including noninterest-bearing demand, interest-bearing checking, money market, savings, and time deposits. It also offers commercial and industrial loans; construction and development loans; owner occupied and non-owner occupied collateral commercial real estate loans; and commercial land loans. In addition, the company provides settlement, accounting, and securitization services for government guaranteed loans; and wealth and investment management services to high-net-worth individuals and families. Live Oak Bancshares, Inc. was founded in 2008 and is headquartered in Wilmington, North Carolina.

IA 1ST BANCSHAR/SH Company Profile

Iowa First Bancshares Corp. operates as the bank holding company for First National Bank of Muscatine and First National Bank in Fairfield that provide various banking products and services for individuals and businesses in Iowa. It offers checking, savings, money market, and time deposit accounts; and commercial and industrial, commercial real estate owner and nonowner occupied, agriculture, residential real estate, and consumer and other loans. The company also provides safe deposit, funds transmitting, trust, debit and credit card, Internet banking, automated teller machine, and other banking services. It operates through four locations in Muscatine and two locations in Fairfield, Iowa. The company was founded in 1984 and is headquartered in Muscatine, Iowa.

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