Head to Head Analysis: Eagle Bancorp Montana (EBMT) and Fidelity Southern (NASDAQ:LION)

Fidelity Southern (NASDAQ: LION) and Eagle Bancorp Montana (NASDAQ:EBMT) are both small-cap financials companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, valuation, risk, earnings, dividends, analyst recommendations and institutional ownership.

Valuation and Earnings

This table compares Fidelity Southern and Eagle Bancorp Montana’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fidelity Southern $290.61 million 2.14 $38.76 million $1.60 14.49
Eagle Bancorp Montana $39.90 million 2.67 $6.45 million $1.29 16.51

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

Analyst Recommendations

This is a summary of current ratings and target prices for Fidelity Southern and Eagle Bancorp Montana, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fidelity Southern 0 2 1 0 2.33
Eagle Bancorp Montana 0 0 0 0 N/A

Fidelity Southern currently has a consensus target price of $24.50, indicating a potential upside of 5.65%. Given Fidelity Southern’s higher probable upside, equities research analysts clearly believe Fidelity Southern is more favorable than Eagle Bancorp Montana.

Dividends

Fidelity Southern pays an annual dividend of $0.48 per share and has a dividend yield of 2.1%. Eagle Bancorp Montana pays an annual dividend of $0.36 per share and has a dividend yield of 1.7%. Fidelity Southern pays out 30.0% of its earnings in the form of a dividend. Eagle Bancorp Montana pays out 27.9% 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.

Profitability

This table compares Fidelity Southern and Eagle Bancorp Montana’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fidelity Southern 13.78% 11.30% 0.94%
Eagle Bancorp Montana 11.85% 8.46% 0.75%

Institutional and Insider Ownership

69.4% of Fidelity Southern shares are held by institutional investors. Comparatively, 26.6% of Eagle Bancorp Montana shares are held by institutional investors. 18.8% of Fidelity Southern shares are held by company insiders. Comparatively, 9.9% of Eagle Bancorp Montana shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Fidelity Southern has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500. Comparatively, Eagle Bancorp Montana has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500.

Summary

Fidelity Southern beats Eagle Bancorp Montana on 12 of the 15 factors compared between the two stocks.

Fidelity Southern 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.

Eagle Bancorp Montana Company Profile

Eagle Bancorp Montana, Inc. is the bank holding company for Opportunity Bank of Montana (the Bank). The Bank is a Montana-chartered commercial bank. The Bank has equity investments in Certified Development Entities, which have received allocations of New Markets Tax Credits (NMTC). The Company offers wealth management services at its locations through financial advisors employed by the Bank. The Bank originates residential mortgages (one- to four-family) and commercial real estate loans, real estate construction loans, home equity loans, consumer loans and commercial loans. The Bank offers a range of deposit accounts, which include certificates of deposit accounts ranging in terms from 90 days to 5 years, as well as, checking, savings and money market accounts. Individual retirement accounts (IRAs) are included in certificates of deposit.

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