Bank7 (NASDAQ:BSVN – Get Rating) and Veritex (NASDAQ:VBTX – 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, earnings, risk, profitability, analyst recommendations, dividends and valuation.
Bank7 pays an annual dividend of $0.48 per share and has a dividend yield of 2.0%. Veritex pays an annual dividend of $0.80 per share and has a dividend yield of 2.4%. Bank7 pays out 18.0% of its earnings in the form of a dividend. Veritex pays out 28.7% 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. Bank7 has increased its dividend for 2 consecutive years and Veritex has increased its dividend for 2 consecutive years.
This table compares Bank7 and Veritex’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Bank7||$58.54 million||3.78||$23.16 million||$2.66||9.14|
|Veritex||$374.89 million||4.74||$139.58 million||$2.79||11.81|
Veritex has higher revenue and earnings than Bank7. Bank7 is trading at a lower price-to-earnings ratio than Veritex, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and target prices for Bank7 and Veritex, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Veritex has a consensus price target of $46.33, suggesting a potential upside of 40.66%. Given Veritex’s higher possible upside, analysts plainly believe Veritex is more favorable than Bank7.
This table compares Bank7 and Veritex’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
Bank7 has a beta of 1.88, suggesting that its share price is 88% more volatile than the S&P 500. Comparatively, Veritex has a beta of 1.49, suggesting that its share price is 49% more volatile than the S&P 500.
Insider and Institutional Ownership
47.8% of Bank7 shares are owned by institutional investors. Comparatively, 77.5% of Veritex shares are owned by institutional investors. 43.9% of Bank7 shares are owned by company insiders. Comparatively, 4.7% of Veritex shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Veritex beats Bank7 on 10 of the 16 factors compared between the two stocks.
About Bank7 (Get Rating)
Bank7 Corp. operates as a bank holding company for Bank7 that provides banking and financial services to individual and corporate customers. It offers commercial deposit services, including commercial checking, money market, and other deposit accounts; and retail deposit services, such as certificates of deposit, money market accounts, checking accounts, negotiable order of withdrawal accounts, savings accounts, and automated teller machine access. The company also provides commercial real estate, hospitality, energy, and commercial and industrial lending services; consumer lending services to individuals for personal and household purposes comprising secured and unsecured term loans, and home improvement loans. As of March 8, 2022, it operated through a network of twelve full-service branches in Oklahoma, the Dallas/Fort Worth, Texas metropolitan area, and Kansas. The company was formerly known as Haines Financial Corp.Bank7 Corp. was founded in 1901 and is headquartered in Oklahoma City, Oklahoma.
About Veritex (Get Rating)
Veritex Holdings, Inc. operates as the bank holding company for Veritex Community Bank that provides various commercial banking products and services to small and medium-sized businesses, and professionals. The company accepts deposit products include demand, savings, money market, and time accounts. Its loan products include commercial real estate and general commercial, mortgage warehouse loans, residential real estate, construction and land, farmland, consumer, paycheck protection program, 1-4 family residential, agricultural, multi-family residential, and consumer loans, as well as purchased receivables financing. The company also provides interest rate swap services; and a range of online banking solutions, such as access to account balances, online transfers, online bill payment and electronic delivery of customer statements, and ATMs, as well as mobile banking, mail, and personal appointment. In addition, it offers debit cards, night depository services, direct deposits, cashier's checks, and letters of credit; treasury management services, including balance reporting, transfers between accounts, wire transfer initiation, automated clearinghouse origination, and stop payments; and cash management deposit products and services consisting of lockbox, remote deposit capture, positive pay, reverse positive pay, account reconciliation services, zero balance accounts, and sweep accounts. As of December 31, 2021, the company operated 18 full-service branches located in the Dallas-Fort Worth metroplex, and 10 full-service branches in the Houston metropolitan area. Veritex Holdings, Inc. was incorporated in 2009 and is headquartered in Dallas, Texas.
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