Analyzing SVB Financial Group (OTCMKTS:SIVBQ) & Equity Bancshares (NASDAQ:EQBK)

Equity Bancshares (NASDAQ:EQBK) and SVB Financial Group (OTCMKTS:SIVBQ) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.

Institutional & Insider Ownership

71.8% of Equity Bancshares shares are owned by institutional investors. Comparatively, 8.7% of SVB Financial Group shares are owned by institutional investors. 6.6% of Equity Bancshares shares are owned by company insiders. Comparatively, 0.6% of SVB Financial Group 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 Equity Bancshares and SVB Financial Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Equity Bancshares	18.66%	14.64%	1.31%
SVB Financial Group	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current ratings and target prices for Equity Bancshares and SVB Financial Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Equity Bancshares	0	3	3	0	2.50
SVB Financial Group	0	0	0	0	0.00

Equity Bancshares currently has a consensus target price of $50.40, suggesting a potential upside of 24.34%. Given Equity Bancshares’ stronger consensus rating and higher probable upside, equities analysts clearly believe Equity Bancshares is more favorable than SVB Financial Group.

Risk and Volatility

Equity Bancshares has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, SVB Financial Group has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500.

Valuation and Earnings

This table compares Equity Bancshares and SVB Financial Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Equity Bancshares	$192.21 million	4.05	$62.62 million	$1.20	33.78
SVB Financial Group	$7.40 billion	0.00	$1.67 billion	N/A	N/A

SVB Financial Group has higher revenue and earnings than Equity Bancshares.

Summary

Equity Bancshares beats SVB Financial Group on 9 of the 12 factors compared between the two stocks.

About Equity Bancshares

Equity Bancshares, Inc. operates as the bank holding company for Equity Bank that provides a range of banking, mortgage banking, and financial services to individual and corporate customers. The company accepts various demand, savings, money market, and time deposits. Its loan products include commercial and industrial, commercial real estate, commercial lines of credit, working capital, term, equipment and aircraft financing, acquisition, expansion and development, borrowing base, real estate construction, homebuilder, agricultural, government guaranteed, and other loan products. The company's loan products also comprise 1 4 family residential mortgages, agriculture, consumer, residential real estate mortgage, and agricultural real estate and production loans. It also provides debit and credit cards; insurance brokerage; trust and wealth management; online banking solutions, such as access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; mobile banking solutions comprising remote check deposits with mobile bill pay; ATMs; and treasury management, wire transfer, automated clearing house, and stop payment services. In addition, the company offers cash management deposit products, such as lockbox, remote deposit capture, positive pay, reverse positive pay, account reconciliation services, zero balance accounts, and sweep accounts, as well as banking services through telephone, mail, and personal appointments. It operates a network of branches in Arkansas, Kansas, Missouri, and Oklahoma. Equity Bancshares, Inc. was incorporated in 2002 and is headquartered in Wichita, Kansas.

About SVB Financial Group

SVB Financial Group, a diversified financial services company, offers various banking and financial products and services. It operates through four segments: Silicon Valley Bank, SVB Private, SVB Capital, and SVB Securities. The Silicon Valley Bank segment provides commercial banking products and services, including credit, treasury management, foreign exchange, trade finance, and other financial products and services. This segment also offers traditional term, growth capital term, and equipment loans, asset-based loans, revolving lines of credit, warehouse facilities, recurring revenue and acquisition finance facilities, mezzanine lending, corporate working capital facilities, and credit card programs; treasury management products and services; business and analysis checking, money market, multi-currency, in-country bank, and sweep accounts; receivables services, which include merchant services, remote capture, lockbox, and fraud control services; wire transfer and automated clearing house payment services; business bill pay, credit and debit cards, account analysis, and disbursement services. In addition, it offers foreign exchange and trade finance products and services; letters of credit; and investment services and solutions. The SVB Private segment offers mortgages, home equity lines of credit, restricted and private stock loans, capital call lines of credit, and other secured and unsecured lending products; planning-based financial strategies, wealth management, family office, financial planning, tax planning, and trust services; and real estate secured loans. The SVB Capital segment provides venture capital investment services. The SVB Securities segment provides investment banking services; products and services, including capital raising, merger and acquisition advisory, equity research, and sales and trading. The company was founded in 1983 and is headquartered in Santa Clara, California. On March 17, 2023, SVB Financial Group, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of New York.