ChoiceOne Financial Services (NASDAQ:COFS) vs. South Plains Financial (NASDAQ:SPFI) Head-To-Head Comparison

ChoiceOne Financial Services (NASDAQ:COFSGet Free Report) and South Plains Financial (NASDAQ:SPFIGet Free Report) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, earnings, risk, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares ChoiceOne Financial Services and South Plains Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ChoiceOne Financial Services 17.53% 11.15% 0.83%
South Plains Financial 21.23% 11.19% 1.05%

Dividends

ChoiceOne Financial Services pays an annual dividend of $1.08 per share and has a dividend yield of 4.3%. South Plains Financial pays an annual dividend of $0.56 per share and has a dividend yield of 2.1%. ChoiceOne Financial Services pays out 38.4% of its earnings in the form of a dividend. South Plains Financial pays out 15.0% 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. ChoiceOne Financial Services has increased its dividend for 12 consecutive years. ChoiceOne Financial Services is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares ChoiceOne Financial Services and South Plains Financial’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ChoiceOne Financial Services $113.89 million 1.67 $21.26 million $2.81 8.94
South Plains Financial $291.26 million 1.49 $62.74 million $3.74 7.08

South Plains Financial has higher revenue and earnings than ChoiceOne Financial Services. South Plains Financial is trading at a lower price-to-earnings ratio than ChoiceOne Financial Services, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and price targets for ChoiceOne Financial Services and South Plains Financial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ChoiceOne Financial Services 0 1 0 0 2.00
South Plains Financial 0 0 2 0 3.00

ChoiceOne Financial Services presently has a consensus price target of $24.00, indicating a potential downside of 4.46%. South Plains Financial has a consensus price target of $31.00, indicating a potential upside of 17.11%. Given South Plains Financial’s stronger consensus rating and higher possible upside, analysts clearly believe South Plains Financial is more favorable than ChoiceOne Financial Services.

Risk & Volatility

ChoiceOne Financial Services has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500. Comparatively, South Plains Financial has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500.

Institutional & Insider Ownership

19.9% of ChoiceOne Financial Services shares are owned by institutional investors. Comparatively, 55.0% of South Plains Financial shares are owned by institutional investors. 7.9% of ChoiceOne Financial Services shares are owned by insiders. Comparatively, 25.4% of South Plains Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

South Plains Financial beats ChoiceOne Financial Services on 12 of the 17 factors compared between the two stocks.

About ChoiceOne Financial Services

(Get Free Report)

ChoiceOne Financial Services, Inc. operates as the bank holding company for ChoiceOne Bank that provides banking services to corporations, partnerships, and individuals in Michigan. The company offers various deposit products, including time, savings, and demand deposits, safe deposit, and automated transaction machine services. It also provides commercial lending products, such as business, industry, agricultural, construction, inventory, and real estate loans; and consumer loans comprising direct and indirect loans to consumers and purchasers of residential and real properties. In addition, the company offers alternative investment products, which include annuities and mutual funds; and sells insurance policies, such as life and health for commercial and consumer clients. Further, it provides trust and wealth management services. ChoiceOne Financial Services, Inc. was founded in 1898 and is headquartered in Sparta, Michigan.

About South Plains Financial

(Get Free Report)

South Plains Financial, Inc. operates as a bank holding company for City Bank that provides commercial and consumer financial services to small and medium-sized businesses and individuals. The company operates through two segments, Banking and Insurance. It offers deposit products, including demand deposit accounts, interest-bearing products, savings accounts, and certificate of deposits. The company also provides commercial real estate loans; general and specialized commercial loans, including agricultural production and real estate, energy, finance, investment, and insurance loans, as well as loans to goods, services, restaurant and retail, construction, and other industries; residential construction loans; and 1-4 family residential loans, auto loans, and other loans for recreational vehicles or other purposes. In addition, it offers crop insurance products; trust products and services; investment services; mortgage banking services; online and mobile banking services; and debit and credit cards. The company was founded in 1941 and is headquartered in Lubbock, Texas.

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