Southern Banc (OTCMKTS:SRNN – Get Free Report) and West Bancorporation (NASDAQ:WTBA – Get Free Report) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, risk, profitability, dividends and earnings.
Valuation & Earnings
This table compares Southern Banc and West Bancorporation”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Southern Banc | $12.13 million | 0.79 | $920,000.00 | $1.22 | 9.75 |
| West Bancorporation | $95.25 million | 4.36 | $32.56 million | $1.91 | 12.83 |
Analyst Recommendations
This is a summary of current ratings and recommmendations for Southern Banc and West Bancorporation, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Southern Banc | 0 | 0 | 0 | 0 | 0.00 |
| West Bancorporation | 0 | 1 | 1 | 1 | 3.00 |
West Bancorporation has a consensus price target of $24.00, indicating a potential downside of 2.04%. Given West Bancorporation’s stronger consensus rating and higher probable upside, analysts plainly believe West Bancorporation is more favorable than Southern Banc.
Profitability
This table compares Southern Banc and West Bancorporation’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Southern Banc | 7.47% | 5.56% | 0.74% |
| West Bancorporation | 16.08% | 14.59% | 0.89% |
Risk and Volatility
Southern Banc has a beta of -0.09, suggesting that its stock price is 109% less volatile than the S&P 500. Comparatively, West Bancorporation has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500.
Insider & Institutional Ownership
44.3% of West Bancorporation shares are owned by institutional investors. 22.0% of Southern Banc shares are owned by insiders. Comparatively, 4.6% of West Bancorporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Summary
West Bancorporation beats Southern Banc on 14 of the 15 factors compared between the two stocks.
About Southern Banc
The Southern Banc Company, Inc. operates as the holding company for The Southern Bank company that provides various banking products and services in Alabama. The company’s personal banking products include checking accounts, home mortgage loans, home equity loans, auto loans, and personal loans. Its business banking products comprise business checking accounts, cash flow management, real estate lending, and equipment financing. The Southern Banc Company, Inc. was founded in 1936 and is based in Gadsden, Alabama.
About West Bancorporation
West Bancorporation, Inc. operates as the financial holding company provides community banking and trust services to individuals and small- to medium-sized businesses in the United States. It offers deposit services, including checking, savings, and money market accounts, as well as time certificates of deposit. The company also provides loan products comprising commercial real estate loans, construction and land development loans, commercial lines of credit, and commercial term loans; consumer loans, including loans extended to individuals for household, family, and other personal expenditures not secured by real estate; and 1-4 family residential mortgages and home equity loans. In addition, it offers online and mobile banking, treasury management services including cash management, client-generated automated clearing house transactions, remote deposit, and fraud protection services; merchant credit card processing and corporate credit cards; and administration of estates, conservatorships, personal trusts, and agency accounts. The company was founded in 1893 and is headquartered in West Des Moines, Iowa.
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