Allegiance Bancshares (NASDAQ:ABTX – Get Rating) and Surrey Bancorp (OTCMKTS:SRYB – Get Rating) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.
Allegiance Bancshares pays an annual dividend of $0.56 per share and has a dividend yield of 1.4%. Surrey Bancorp pays an annual dividend of $0.42 per share and has a dividend yield of 2.9%. Allegiance Bancshares pays out 13.9% of its earnings in the form of a dividend. Surrey Bancorp pays out 38.2% 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. Allegiance Bancshares has increased its dividend for 2 consecutive years.
This table compares Allegiance Bancshares and Surrey Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Allegiance Bancshares and Surrey Bancorp’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Allegiance Bancshares||$261.75 million||3.04||$81.55 million||$4.02||9.73|
|Surrey Bancorp||$16.20 million||3.64||$5.10 million||$1.10||13.11|
Allegiance Bancshares has higher revenue and earnings than Surrey Bancorp. Allegiance Bancshares is trading at a lower price-to-earnings ratio than Surrey Bancorp, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
54.6% of Allegiance Bancshares shares are held by institutional investors. Comparatively, 3.7% of Surrey Bancorp shares are held by institutional investors. 5.8% of Allegiance Bancshares shares are held by company insiders. Comparatively, 33.7% of Surrey Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Volatility and Risk
Allegiance Bancshares has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500. Comparatively, Surrey Bancorp has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500.
This is a breakdown of recent recommendations and price targets for Allegiance Bancshares and Surrey Bancorp, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Allegiance Bancshares beats Surrey Bancorp on 10 of the 14 factors compared between the two stocks.
Allegiance Bancshares Company Profile (Get Rating)
Allegiance Bancshares, Inc. operates as the bank holding company for Allegiance Bank that provides a range of commercial banking services primarily to small and medium-sized businesses, professionals, and individual customers. It accepts deposit products, including checking accounts, commercial accounts, money market accounts, savings accounts, and other time deposits; and certificates of deposit. The company's loan portfolio comprises commercial and industrial loans; commercial real estate loans, including multi-family residential loans; commercial real estate construction and land development loans; residential real estate loans, such as 1-4 family residential mortgage loans; residential construction loans; and consumer and other loans. In addition, it offers automated teller machine services, drive-through services, and depository facilities; mobile banking services; and telephone, mail, and Internet banking services. Further, the company provides safe deposit boxes, debit cards, cash management and wire transfer services, night depository services, direct deposits, cashier's checks, and letters of credit. As of December 31, 2021, it operated 27 full-service banking locations, including 26 bank offices in the Houston metropolitan area and one office in Beaumont. The company was founded in 2007 and is headquartered in Houston, Texas.
Surrey Bancorp Company Profile (Get Rating)
Surrey Bancorp operates as the bank holding company for Surrey Bank & Trust that provides various banking products and services for individuals and small to medium sized businesses in Surry County, North Carolina and Patrick County, and Virginia and the surrounding area. It offers checking and savings accounts, certificates of deposit, overdrafts, and individual retirement accounts. The company also provides mortgages; real estate, consumer, and personal loans; lines of credit; commercial credit products; government-guaranteed loans; and credit cards. In addition, it offers cash management, international, merchant card, and other business services; and electronic banking and safe deposit box services. The company was founded in 2003 and is based in Mount Airy, North Carolina.
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