QCR (NASDAQ:QCRH) and Peoples Bancorp of North Carolina (NASDAQ:PEBK) Financial Comparison

Peoples Bancorp of North Carolina (NASDAQ:PEBK) and QCR (NASDAQ:QCRH) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Analyst Ratings

This is a summary of current ratings and price targets for Peoples Bancorp of North Carolina and QCR, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Peoples Bancorp of North Carolina	0	0	1	0	3.00
QCR	0	3	4	0	2.57

QCR has a consensus target price of $108.40, indicating a potential upside of 8.42%. Given QCR’s higher probable upside, analysts plainly believe QCR is more favorable than Peoples Bancorp of North Carolina.

Dividends

Peoples Bancorp of North Carolina pays an annual dividend of $0.84 per share and has a dividend yield of 1.9%. QCR pays an annual dividend of $0.40 per share and has a dividend yield of 0.4%. Peoples Bancorp of North Carolina pays out 23.1% of its earnings in the form of a dividend. QCR pays out 4.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Peoples Bancorp of North Carolina has increased its dividend for 1 consecutive years. Peoples Bancorp of North Carolina is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares Peoples Bancorp of North Carolina and QCR”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Peoples Bancorp of North Carolina	$114.60 million	2.10	$19.83 million	$3.64	12.09
QCR	$603.75 million	2.71	$127.19 million	$8.46	11.82

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

Profitability

This table compares Peoples Bancorp of North Carolina and QCR’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Peoples Bancorp of North Carolina	17.25%	12.75%	1.15%
QCR	22.86%	12.87%	1.50%

Risk and Volatility

Peoples Bancorp of North Carolina has a beta of 0.29, meaning that its share price is 71% less volatile than the S&P 500. Comparatively, QCR has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500.

Insider and Institutional Ownership

43.8% of Peoples Bancorp of North Carolina shares are owned by institutional investors. Comparatively, 70.0% of QCR shares are owned by institutional investors. 14.5% of Peoples Bancorp of North Carolina shares are owned by insiders. Comparatively, 3.2% of QCR 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

QCR beats Peoples Bancorp of North Carolina on 12 of the 17 factors compared between the two stocks.

About Peoples Bancorp of North Carolina

Peoples Bancorp of North Carolina, Inc. operates as the bank holding company for Peoples Bank that provides various banking products and services for individuals and small-to medium-sized businesses. It offers checking, savings, money market, and retirement accounts; certificates of deposits; and credit and debit cards. The company also originates commercial real estate loans, commercial loans, construction and land development loans, and residential mortgage loans; and individual taxpayer identification number mortgage loans, as well as agricultural loans. In addition, it provides investment counseling and non-deposit investment products, such as stocks, bonds, mutual funds, tax deferred annuities, and related brokerage services; and real estate appraisal and brokerage services. Further, the company operates as a clearing-house for the provision of appraisal services for community banks; and acquires, manages, and disposes real property, other collateral, and other assets obtained in the ordinary course of collecting debts. Peoples Bancorp of North Carolina, Inc. was founded in 1912 and is headquartered in Newton, North Carolina.

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.