Coastal Financial (NASDAQ:CCB – Get Rating) and Stock Yards Bancorp (NASDAQ:SYBT – Get Rating) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, analyst recommendations, earnings, valuation, dividends and institutional ownership.
This table compares Coastal Financial and Stock Yards Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Stock Yards Bancorp||30.73%||15.65%||1.61%|
56.3% of Coastal Financial shares are held by institutional investors. Comparatively, 50.6% of Stock Yards Bancorp shares are held by institutional investors. 21.4% of Coastal Financial shares are held by company insiders. Comparatively, 4.2% of Stock Yards Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Volatility and Risk
Coastal Financial has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500. Comparatively, Stock Yards Bancorp has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500.
Valuation and Earnings
This table compares Coastal Financial and Stock Yards Bancorp’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Coastal Financial||$111.20 million||5.06||$27.00 million||$2.16||20.16|
|Stock Yards Bancorp||$242.93 million||5.72||$74.64 million||$2.94||17.74|
Stock Yards Bancorp has higher revenue and earnings than Coastal Financial. Stock Yards Bancorp is trading at a lower price-to-earnings ratio than Coastal Financial, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and target prices for Coastal Financial and Stock Yards Bancorp, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Stock Yards Bancorp||0||1||0||0||2.00|
Coastal Financial currently has a consensus target price of $58.33, suggesting a potential upside of 33.95%. Stock Yards Bancorp has a consensus target price of $67.00, suggesting a potential upside of 28.45%. Given Coastal Financial’s stronger consensus rating and higher possible upside, equities analysts plainly believe Coastal Financial is more favorable than Stock Yards Bancorp.
Coastal Financial beats Stock Yards Bancorp on 9 of the 15 factors compared between the two stocks.
Coastal Financial Company Profile (Get Rating)
Coastal Financial Corporation operates as the bank holding company for Coastal Community Bank that provides various banking products and services to small to medium-sized businesses, professionals, and individuals in the Puget Sound region in Washington. It accepts a range of deposit products, including demand and savings accounts, time deposits, and money market accounts. The company offers commercial and industrial loans, including term loans, small business administration loans, commercial lines of credit, working capital loans, equipment financing, borrowing base loans, and other loan products; owner-occupied and non-owner-occupied real estate loans, and multi-family residential loans; construction and land development loans; residential real estate loans; and consumer and other loans, including automobile, boat and recreational vehicle, and secured term loans, as well as overdraft protection. It also provides remote deposit capture, online and mobile banking, and direct and reciprocal deposit services, as well as debit cards. In addition, the company offers business accounts and cash management services, including business checking and savings accounts, and treasury services, as well as banking as a service (BaaS), a platform that allows broker dealers and digital financial service providers to offer their clients banking services. It operates 14 full-service banking locations. Coastal Financial Corporation was founded in 1997 and is headquartered in Everett, Washington.
Stock Yards Bancorp Company Profile (Get Rating)
Stock Yards Bancorp, Inc. operates as a holding company for Stock Yards Bank & Trust Company and SYB Insurance Company, Inc. that provides various banking products and services in Louisville, Indianapolis, Indiana, and Ohio. It operates in two segments, Commercial Banking and WM&T. The Commercial Banking segment provides mortgage banking and deposit services; retail, commercial, and commercial real estate lending services; and leasing, treasury management, merchant, international banking, correspondent banking, and other banking services. This segment also provides securities brokerage services through an arrangement with a third party broker-dealer; and online, mobile, and private banking services to individual consumers and businesses. The WM&T segment provides investment management, financial and retirement planning, and trust and estate services, as well as retirement plan management for businesses and corporations. As of December 31, 2021, the company operated 63 full service banking locations, including 33 in the Louisville, 19 in Central Kentucky, 6 in Cincinnati, and 5 in Indianapolis. Stock Yards Bancorp, Inc. was founded in 1904 and is headquartered in Louisville, Kentucky.
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