Stock Yards Bancorp (NASDAQ: SYBT) and Guaranty Federal Bancshares (NASDAQ:GFED) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.
This is a breakdown of current recommendations for Stock Yards Bancorp and Guaranty Federal Bancshares, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Stock Yards Bancorp||0||1||1||0||2.50|
|Guaranty Federal Bancshares||0||0||1||0||3.00|
Stock Yards Bancorp currently has a consensus price target of $40.00, indicating a potential upside of 5.54%. Guaranty Federal Bancshares has a consensus price target of $25.00, indicating a potential upside of 0.20%. Given Stock Yards Bancorp’s higher probable upside, analysts clearly believe Stock Yards Bancorp is more favorable than Guaranty Federal Bancshares.
Risk & Volatility
Stock Yards Bancorp has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500. Comparatively, Guaranty Federal Bancshares has a beta of -0.01, indicating that its stock price is 101% less volatile than the S&P 500.
Stock Yards Bancorp pays an annual dividend of $0.92 per share and has a dividend yield of 2.4%. Guaranty Federal Bancshares pays an annual dividend of $0.48 per share and has a dividend yield of 1.9%. Stock Yards Bancorp pays out 48.2% of its earnings in the form of a dividend. Guaranty Federal Bancshares pays out 32.9% 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. Stock Yards Bancorp has raised its dividend for 6 consecutive years and Guaranty Federal Bancshares has raised its dividend for 3 consecutive years. Stock Yards Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional and Insider Ownership
47.7% of Stock Yards Bancorp shares are owned by institutional investors. Comparatively, 26.8% of Guaranty Federal Bancshares shares are owned by institutional investors. 6.2% of Stock Yards Bancorp shares are owned by insiders. Comparatively, 10.0% of Guaranty Federal Bancshares shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares Stock Yards Bancorp and Guaranty Federal Bancshares’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Stock Yards Bancorp||26.61%||14.66%||1.52%|
|Guaranty Federal Bancshares||8.51%||9.16%||0.87%|
Valuation and Earnings
This table compares Stock Yards Bancorp and Guaranty Federal Bancshares’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Stock Yards Bancorp||$155.97 million||5.53||$38.04 million||$1.91||19.84|
|Guaranty Federal Bancshares||$35.17 million||3.16||$5.15 million||$1.46||17.09|
Stock Yards Bancorp has higher revenue and earnings than Guaranty Federal Bancshares. Guaranty Federal Bancshares is trading at a lower price-to-earnings ratio than Stock Yards Bancorp, indicating that it is currently the more affordable of the two stocks.
Stock Yards Bancorp beats Guaranty Federal Bancshares on 13 of the 16 factors compared between the two stocks.
Stock Yards Bancorp Company Profile
Stock Yards Bancorp, Inc. operates as the holding company for Stock Yards Bank & Trust Company that provides commercial and personal banking services in Louisville, Indianapolis, and Cincinnati. Its deposit products include demand deposits, savings deposits, certificates of deposit, money market deposits, and time deposits. The company's loan portfolio comprises commercial and industrial, construction and development, undeveloped land, real estate mortgage, and consumer loans; and originates and sells single-family residential mortgages. In addition, it offers securities brokerage services through an arrangement with a third party broker-dealer; and investment management, trust, employee benefit plan, estate administration, and financial planning services. As of December 31, 2017, the company had 37 banking locations, including 28 full service banking locations in the Louisville metropolitan statistical area (MSA), 4 full service banking locations in the Indianapolis MSA, and 5 full service banking locations in the Cincinnati MSA. Stock Yards Bancorp, Inc. was founded in 1904 and is headquartered in Louisville, Kentucky.
Guaranty Federal Bancshares Company Profile
Guaranty Federal Bancshares, Inc. operates as the bank holding company for Guaranty Bank that provides banking products and services in the southwestern corner of Missouri. The company's deposit products include checking accounts, money market accounts, savings accounts, fixed-term certificates of deposit, and individual retirement accounts, as well as demand deposits and NOW accounts. Its loan portfolio comprises commercial real estate loans, one-to four-family mortgage loans, multi-family residential mortgage loans, and construction loans; and consumer and other loans, such as loans secured by certificates of deposit, automobile loans, boat loans, and home equity loans, as well as business loans. As of April 18, 2017, the company had nine full-service branches in Greene and Christian Counties; and loan production offices in Jasper and Webster Counties. It also provides access to approximately 24,000 ATMs. Guaranty Federal Bancshares, Inc. was founded in 1913 and is based in Springfield, Missouri.
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