Head-To-Head Review: Banner (NASDAQ:BANR) & Southern Banc (OTCMKTS:SRNN)

Southern Banc (OTCMKTS:SRNN) and Banner (NASDAQ:BANR) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.

Risk and Volatility

Southern Banc has a beta of -0.09, suggesting that its stock price is 109% less volatile than the S&P 500. Comparatively, Banner has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500.

Valuation and Earnings

This table compares Southern Banc and Banner”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Southern Banc	$12.13 million	0.67	$920,000.00	$1.21	8.31
Banner	$832.99 million	2.71	$168.90 million	$5.49	12.08

Banner has higher revenue and earnings than Southern Banc. Southern Banc is trading at a lower price-to-earnings ratio than Banner, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Southern Banc and Banner, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Southern Banc	0	0	0	0	0.00
Banner	0	4	3	0	2.43

Banner has a consensus target price of $71.17, suggesting a potential upside of 7.35%. Given Banner’s stronger consensus rating and higher possible upside, analysts clearly believe Banner is more favorable than Southern Banc.

Institutional & Insider Ownership

87.3% of Banner shares are owned by institutional investors. 22.0% of Southern Banc shares are owned by insiders. Comparatively, 1.6% of Banner shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Southern Banc and Banner’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Southern Banc	7.55%	5.65%	0.75%
Banner	21.80%	10.32%	1.17%

Summary

Banner beats Southern Banc on 13 of the 14 factors compared between the two stocks.

About Southern Banc

The Southern Banc Company, Inc. operates as the holding company for The Southern Bank company that provides various banking products and services in Alabama. The company’s personal banking products include checking accounts, home mortgage loans, home equity loans, auto loans, and personal loans. Its business banking products comprise business checking accounts, cash flow management, real estate lending, and equipment financing. The Southern Banc Company, Inc. was founded in 1936 and is based in Gadsden, Alabama.

About Banner

Banner Corporation operates as the bank holding company for Banner Bank that engages in the provision of commercial banking and financial products and services to individuals, businesses, and public sector entities in the United States. It accepts various deposit instruments, including interest-bearing and non-interest-bearing checking accounts, money market deposit accounts, regular savings accounts, and certificates of deposit, as well as treasury management services and retirement savings plans. The company also provides commercial real estate loans, including owner-occupied, investment properties, and multifamily residential real estate loans; construction, land, and land development loans; one- to four-family residential real estate lending; commercial business loans; agricultural loans; consumer and other loans, such as home equity lines of credit, automobile, and boat and recreational vehicle loans, as well as loans secured by deposit accounts; and small business administration loans. In addition, it provides electronic and digital banking services comprising debit cards and ATMs, internet banking, remote deposit, and mobile banking services. The company was founded in 1890 and is based in Walla Walla, Washington.