West Coast Community Bancorp (OTCMKTS:SCZC – Get Free Report) and QCR (NASDAQ:QCRH – Get Free Report) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, institutional ownership, valuation and risk.
Dividends
West Coast Community Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 1.9%. QCR pays an annual dividend of $0.24 per share and has a dividend yield of 0.3%. West Coast Community Bancorp pays out 23.6% 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.
Profitability
This table compares West Coast Community Bancorp and QCR’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
West Coast Community Bancorp | 23.91% | N/A | N/A |
QCR | 19.06% | 12.68% | 1.35% |
Valuation and Earnings
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
West Coast Community Bancorp | $123.69 million | 3.55 | $29.58 million | $3.39 | 12.22 |
QCR | $332.65 million | 3.60 | $113.85 million | $6.65 | 10.65 |
QCR has higher revenue and earnings than West Coast Community Bancorp. QCR is trading at a lower price-to-earnings ratio than West Coast Community Bancorp, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
9.7% of West Coast Community Bancorp shares are owned by institutional investors. Comparatively, 70.0% of QCR shares are owned by institutional investors. 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 will outperform the market over the long term.
Volatility & Risk
West Coast Community Bancorp has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500. Comparatively, QCR has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings for West Coast Community Bancorp and QCR, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
West Coast Community Bancorp | 0 | 0 | 0 | 0 | 0.00 |
QCR | 0 | 0 | 3 | 0 | 3.00 |
QCR has a consensus target price of $85.33, indicating a potential upside of 20.53%. Given QCR’s stronger consensus rating and higher probable upside, analysts plainly believe QCR is more favorable than West Coast Community Bancorp.
Summary
QCR beats West Coast Community Bancorp on 13 of the 16 factors compared between the two stocks.
About West Coast Community Bancorp
West Coast Community Bancorp operates as the bank holding company for Santa Cruz County Bank that provides a range of commercial and personal banking services to residents and businesses in the United States. It offers checking, savings, money market, certificate of deposits, and health savings accounts; and individual retirement account and retirement plans. The company also provides lending products, including real estate commercial property, construction, asset-based, lines of credit, SBA loans, 504 loan program, business and industry, farm services agency, agricultural, and wine industry lending. In addition, it provides debit and credit cards, merchant services, online and mobile banking, remote deposit services, wire and ACH manager, treasury management, payment, and cash management services. West Coast Community Bancorp was founded in 2004 and is headquartered in Santa Cruz, California.
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.
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