Contrasting Synovus Financial (NYSE:SNV) and Benchmark Bankshares (OTCMKTS:BMBN)

Synovus Financial (NYSE:SNV) and Benchmark Bankshares (OTCMKTS:BMBN) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.

Earnings and Valuation

This table compares Synovus Financial and Benchmark Bankshares”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Synovus Financial	$3.43 billion	1.95	$482.46 million	$5.21	9.24
Benchmark Bankshares	$73.53 million	1.98	$15.85 million	N/A	N/A

Synovus Financial has higher revenue and earnings than Benchmark Bankshares.

Risk and Volatility

Synovus Financial has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500. Comparatively, Benchmark Bankshares has a beta of 0.13, indicating that its stock price is 87% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Synovus Financial and Benchmark Bankshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Synovus Financial	0	9	9	0	2.50
Benchmark Bankshares	0	0	0	0	0.00

Synovus Financial currently has a consensus target price of $58.50, suggesting a potential upside of 21.53%. Given Synovus Financial’s stronger consensus rating and higher possible upside, equities analysts plainly believe Synovus Financial is more favorable than Benchmark Bankshares.

Institutional and Insider Ownership

83.9% of Synovus Financial shares are held by institutional investors. Comparatively, 3.2% of Benchmark Bankshares shares are held by institutional investors. 1.0% of Synovus Financial shares are held by insiders. Comparatively, 14.0% of Benchmark Bankshares shares are held by 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.

Profitability

This table compares Synovus Financial and Benchmark Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Synovus Financial	21.52%	16.20%	1.31%
Benchmark Bankshares	N/A	N/A	N/A

Dividends

Synovus Financial pays an annual dividend of $1.56 per share and has a dividend yield of 3.2%. Benchmark Bankshares pays an annual dividend of $0.88 per share and has a dividend yield of 2.7%. Synovus Financial pays out 29.9% of its earnings in the form of a dividend. Synovus Financial has raised its dividend for 1 consecutive years. Synovus Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Synovus Financial beats Benchmark Bankshares on 12 of the 15 factors compared between the two stocks.

About Synovus Financial

Synovus Financial Corp. operates as the bank holding company for Synovus Bank that provides commercial and consumer banking products and services. It operates through four segments: Community Banking, Wholesale Banking, Consumer Banking, and Financial Management Services. The company's commercial banking services include treasury and asset management, capital market, and institutional trust services, as well as commercial, financial, and real estate lending services. Its consumer banking services comprise accepting customary types of demand and savings deposits accounts; mortgage, installment, and other consumer loans; investment and brokerage services; safe deposit services; automated banking services; automated fund transfers; internet-based banking services; and bank credit and debit card services, including Visa and MasterCard services. The company also offers various other financial services, including portfolio management for fixed-income securities, investment banking, execution of securities transactions as a broker/dealer, trust management, and financial planning services, as well as provides individual investment advice on equity and other securities. The company was founded in 1888 and is headquartered in Columbus, Georgia.

About Benchmark Bankshares

Benchmark Bankshares, Inc. operates as the holding company for Benchmark Community Bank that provides various banking products and services in the United States. The company accepts various deposits, such as checking, saving, commercial services, and youth accounts. Its loan products include personal, mortgage, other real estate, business, auto, and student loans. The company also offers credit and debit cards; wealth management services comprising financial solutions, financial and retirement planning, and portfolio management, as well as estate, charitable giving, and trust services; and reorder checks, safe deposit boxes, wire transfers, bill pay, and internet and mobile banking services. The company was founded in 1971 and is based in Kenbridge, Virginia.