Head-To-Head Comparison: Iowa First Bancshares (OTCMKTS:IOFB) versus Silvergate Capital (NYSE:SI)

Iowa First Bancshares (OTCMKTS:IOFBGet Rating) and Silvergate Capital (NYSE:SIGet Rating) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Iowa First Bancshares and Silvergate Capital, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Iowa First Bancshares 0 0 0 0 N/A
Silvergate Capital 0 1 7 0 2.88

Silvergate Capital has a consensus target price of $205.63, indicating a potential upside of 73.99%. Given Silvergate Capital’s higher possible upside, analysts clearly believe Silvergate Capital is more favorable than Iowa First Bancshares.

Profitability

This table compares Iowa First Bancshares and Silvergate Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Iowa First Bancshares N/A N/A N/A
Silvergate Capital 44.71% 7.36% 0.64%

Insider & Institutional Ownership

83.5% of Silvergate Capital shares are owned by institutional investors. 12.8% of Iowa First Bancshares shares are owned by insiders. Comparatively, 8.5% of Silvergate Capital shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Iowa First Bancshares has a beta of 0.16, meaning that its share price is 84% less volatile than the S&P 500. Comparatively, Silvergate Capital has a beta of 2.46, meaning that its share price is 146% more volatile than the S&P 500.

Earnings and Valuation

This table compares Iowa First Bancshares and Silvergate Capital’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Iowa First Bancshares N/A N/A $2.50 million $2.65 15.50
Silvergate Capital $175.65 million 21.27 $78.53 million $2.89 40.89

Silvergate Capital has higher revenue and earnings than Iowa First Bancshares. Iowa First Bancshares is trading at a lower price-to-earnings ratio than Silvergate Capital, indicating that it is currently the more affordable of the two stocks.

Summary

Silvergate Capital beats Iowa First Bancshares on 11 of the 12 factors compared between the two stocks.

About Iowa First Bancshares (Get Rating)

Iowa First Bancshares Corp. operates as the bank holding company for First National Bank of Muscatine and First National Bank in Fairfield that provide various banking products and services for individuals, businesses, and governmental organizations in Iowa. It offers checking, savings, money market, and time deposit accounts; and commercial and industrial, commercial real estate owner and non-owner occupied, agriculture, residential real estate, and consumer and other loans. The company also provides safe deposit, funds transmitting, trust, debit and credit card, Internet banking, automated teller machine, and other banking services. It operates through 4 locations in Muscatine and 2 locations in Fairfield, Iowa. The company was founded in 1870 and is headquartered in Muscatine, Iowa.

About Silvergate Capital (Get Rating)

Silvergate Capital Corporation operates as a bank holding company for Silvergate Bank that provides banking products and services to business and individual clients in the United States. The company accepts deposit products, including interest and noninterest bearing demand accounts, money market and savings accounts, and certificates of deposit accounts. Its loan products comprise one-to-four family real estate loans, multi-family real estate loans, commercial real estate loans, construction loans, commercial and industrial loans, mortgage warehouse loans, and reverse mortgage loans, as well as consumer loans and other loans secured by personal property. The company also provides cash management services for digital currency-related businesses. Silvergate Capital Corporation was founded in 1988 and is headquartered in La Jolla, California.

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