QCR (NASDAQ:QCRH) and Solera National Bancorp (OTCMKTS:SLRK) Critical Survey

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Solera National Bancorp	27.46%	N/A	N/A
QCR	21.07%	12.30%	1.39%

Valuation and Earnings

This table compares Solera National Bancorp and QCR”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	$83.83 million	0.92	$23.02 million	$5.35	3.37
QCR	$603.75 million	2.41	$127.19 million	$7.51	11.52

QCR has higher revenue and earnings than Solera National Bancorp. Solera National Bancorp is trading at a lower price-to-earnings ratio than QCR, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

70.0% of QCR shares are held by institutional investors. 17.4% of Solera National Bancorp shares are held by insiders. Comparatively, 3.7% of QCR shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility and Risk

Solera National Bancorp has a beta of 0.4, meaning that its stock price is 60% less volatile than the S&P 500. Comparatively, QCR has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Solera National Bancorp and QCR, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solera National Bancorp	0	0	0	0	0.00
QCR	0	2	4	0	2.67

QCR has a consensus target price of $102.25, indicating a potential upside of 18.21%. Given QCR’s stronger consensus rating and higher probable upside, analysts clearly believe QCR is more favorable than Solera National Bancorp.

Summary

QCR beats Solera National Bancorp on 12 of the 14 factors compared between the two stocks.

About Solera National Bancorp

Solera National Bancorp, Inc. operates as the bank holding company for Solera National Bank that provides commercial and consumer banking services in the United States. The company offers checking and savings accounts, money market accounts, time and demand deposits, and individual retirement accounts (IRA), as well as certificates of deposit; and 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, business debit card, and cash management services. The company was incorporated in 2006 and is based in Lakewood, Colorado.

About QCR

QCR Holdings, Inc., a multi-bank holding company, provides commercial and consumer banking, and trust and asset management services. The company’s deposit products include noninterest-bearing demand, interest-bearing demand, time, and brokered deposits. It also provides various commercial and retail lending/leasing, and investment services to corporations, partnerships, individuals, and government agencies. The company’s loan portfolio comprises loans to small and mid-sized businesses; business loans, including lines of credit for working capital and operational purposes; term loans for the acquisition of facilities, equipment, and other purposes; commercial and residential real estate loans; and installment and other consumer loans, such as home improvement, home equity, motor vehicle, and signature loans, as well as small personal credit lines. In addition, it engages in leasing of machinery and equipment to commercial and industrial businesses under direct financing lease contracts; and issuance of trust preferred securities. QCR Holdings, Inc. was incorporated in 1993 and is headquartered in Moline, Illinois.