Contrasting QCR (NASDAQ:QCRH) & Washington Trust Bancorp (NASDAQ:WASH)

Washington Trust Bancorp (NASDAQ:WASH) and QCR (NASDAQ:QCRH) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, valuation, analyst recommendations, dividends and profitability.

Dividends

Washington Trust Bancorp pays an annual dividend of $2.24 per share and has a dividend yield of 7.8%. QCR pays an annual dividend of $0.24 per share and has a dividend yield of 0.4%. Washington Trust Bancorp pays out -143.6% of its earnings in the form of a dividend. QCR pays out 3.6% 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. Washington Trust Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk and Volatility

Washington Trust Bancorp has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500. Comparatively, QCR has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings for Washington Trust Bancorp and QCR, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Washington Trust Bancorp	0	2	0	1	2.67
QCR	0	0	3	0	3.00

Washington Trust Bancorp currently has a consensus target price of $32.50, suggesting a potential upside of 13.56%. QCR has a consensus target price of $85.33, suggesting a potential upside of 28.57%. Given QCR’s stronger consensus rating and higher probable upside, analysts clearly believe QCR is more favorable than Washington Trust Bancorp.

Institutional & Insider Ownership

65.8% of Washington Trust Bancorp shares are owned by institutional investors. Comparatively, 70.0% of QCR shares are owned by institutional investors. 1.1% of Washington Trust Bancorp shares are owned by company insiders. Comparatively, 3.7% of QCR shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Washington Trust Bancorp and QCR’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Washington Trust Bancorp	-6.90%	8.99%	0.60%
QCR	19.06%	12.68%	1.35%

Valuation and Earnings

This table compares Washington Trust Bancorp and QCR”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Washington Trust Bancorp	$103.89 million	5.31	-$28.06 million	($1.56)	-18.35
QCR	$332.65 million	3.38	$113.85 million	$6.65	9.98

QCR has higher revenue and earnings than Washington Trust Bancorp. Washington Trust Bancorp is trading at a lower price-to-earnings ratio than QCR, indicating that it is currently the more affordable of the two stocks.

Summary

QCR beats Washington Trust Bancorp on 12 of the 17 factors compared between the two stocks.

About Washington Trust Bancorp

Washington Trust Bancorp, Inc. operates as the bank holding company for The Washington Trust Company, of Westerly that provides various banking and financial services to individuals and businesses. The company operates in two segments, Commercial Banking and Wealth Management Services. The Commercial Banking segment offers deposit accounts, including interest-bearing and noninterest-bearing demand deposits, NOW and savings accounts, money market and retirement deposit accounts, and time deposits; various commercial and retail lending products, such as commercial real estate loans, including commercial mortgages, and construction and development loans; commercial and industrial loans comprising working capital, equipment financing, and financing for other business-related purposes; residential real estate loans that consist of mortgage and homeowner construction loans; and consumer loans comprising home equity loans and lines of credit, personal installment loans, and loans to individuals secured by general aviation aircraft. This segment also provides debit cards; automated teller machines (ATMs); telephone banking, internet banking, mobile banking, remote deposit capture, and other cash management services; and investment portfolio and wholesale funding services. The Wealth Management Services segment offers investment management; financial planning; personal trust and estate services, such as trustee, personal representative, custodian, and guardian; and settlement of decedents’ estates, as well as institutional trust services comprising custody and fiduciary services for personal and institutional clients. Washington Trust Bancorp, Inc. was founded in 1800 and is headquartered in Westerly, Rhode Island.

About QCR

QCR Holdings, Inc., a multi-bank holding company, provides commercial and consumer banking, and trust and asset management services. The company’s deposit products include noninterest-bearing demand, interest-bearing demand, time, and brokered deposits. It also provides various commercial and retail lending/leasing, and investment services to corporations, partnerships, individuals, and government agencies. The company’s loan portfolio comprises loans to small and mid-sized businesses; business loans, including lines of credit for working capital and operational purposes; term loans for the acquisition of facilities, equipment, and other purposes; commercial and residential real estate loans; and installment and other consumer loans, such as home improvement, home equity, motor vehicle, and signature loans, as well as small personal credit lines. In addition, it engages in leasing of machinery and equipment to commercial and industrial businesses under direct financing lease contracts; and issuance of trust preferred securities. QCR Holdings, Inc. was incorporated in 1993 and is headquartered in Moline, Illinois.