Guaranty Bancorp (NASDAQ: GBNK) and Fidelity Southern Corporation (NASDAQ:LION) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, risk and valuation.
Guaranty Bancorp pays an annual dividend of $0.50 per share and has a dividend yield of 1.9%. Fidelity Southern Corporation pays an annual dividend of $0.48 per share and has a dividend yield of 2.2%. Guaranty Bancorp pays out 41.0% of its earnings in the form of a dividend. Fidelity Southern Corporation pays out 27.0% 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. Fidelity Southern Corporation is clearly the better dividend stock, given its higher yield and lower payout ratio.
This is a breakdown of current ratings and recommmendations for Guaranty Bancorp and Fidelity Southern Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fidelity Southern Corporation||0||2||1||0||2.33|
Guaranty Bancorp presently has a consensus target price of $28.63, indicating a potential upside of 11.17%. Fidelity Southern Corporation has a consensus target price of $24.50, indicating a potential upside of 11.67%. Given Fidelity Southern Corporation’s higher possible upside, analysts plainly believe Fidelity Southern Corporation is more favorable than Guaranty Bancorp.
This table compares Guaranty Bancorp and Fidelity Southern Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Fidelity Southern Corporation||14.95%||12.87%||1.05%|
Valuation & Earnings
This table compares Guaranty Bancorp and Fidelity Southern Corporation’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Guaranty Bancorp||$131.60 million||5.46||$34.06 million||$1.22||21.11|
|Fidelity Southern Corporation||$269.22 million||2.18||$47.53 million||$1.78||12.33|
Fidelity Southern Corporation has higher revenue and earnings than Guaranty Bancorp. Fidelity Southern Corporation is trading at a lower price-to-earnings ratio than Guaranty Bancorp, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Guaranty Bancorp has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500. Comparatively, Fidelity Southern Corporation has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500.
Insider and Institutional Ownership
70.5% of Guaranty Bancorp shares are owned by institutional investors. Comparatively, 68.2% of Fidelity Southern Corporation shares are owned by institutional investors. 8.4% of Guaranty Bancorp shares are owned by insiders. Comparatively, 18.8% of Fidelity Southern Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Fidelity Southern Corporation beats Guaranty Bancorp on 9 of the 16 factors compared between the two stocks.
Guaranty Bancorp Company Profile
Guaranty Bancorp is a bank holding company. The Company’s bank subsidiary is Guaranty Bank and Trust Company (the Bank). As of December 31, 2016, the Company operated 32 branches and two investment management firms, Private Capital Management LLC (PCM) and Cherry Hills Investment Advisors Inc. (CHIA), in Colorado through the Bank. The Bank provides banking and other financial services, including commercial and industrial loans, real estate loans, construction loans, consumer loans and agriculture loans across its targeted Colorado markets to consumers and small to medium-sized businesses, including the owners and employees of those businesses. Along with loans and depository services, the Bank also provides wealth management solutions, including trust and investment management services. The Bank’s commercial and industrial loan portfolio consists of operating loans secured by business assets.
Fidelity Southern Corporation Company Profile
Fidelity Southern Corporation is a bank holding company. The Company conducts its operations through its subsidiary bank, Fidelity Bank, which is a state chartered bank (the Bank). The Company provides an array of financial products and services for business and retail customers in the metropolitan Atlanta and Jacksonville, Orlando and Sarasota-Bradenton, Florida markets. The Company provides mortgage loans, indirect automobile loans and Small Business Administration (SBA) loans throughout the South and parts of the Midwest. It delivers its products and services through a network of offices located in Southern states. As of December 31, 2016, it owned 55 and leased 10 retail bank branches and it leased 27 loan production offices. The Company is primarily engaged in attracting deposits from individuals and businesses and using these deposits and borrowed funds to originate commercial, residential mortgage, construction and installment loans.
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