Southern Banc (OTCMKTS:SRNN) vs. ServisFirst Bancshares (NYSE:SFBS) Head-To-Head Review

ServisFirst Bancshares (NYSE:SFBS) and Southern Banc (OTCMKTS:SRNN) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Risk & Volatility

ServisFirst Bancshares has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, Southern Banc has a beta of -0.09, meaning that its share price is 109% less volatile than the S&P 500.

Earnings and Valuation

This table compares ServisFirst Bancshares and Southern Banc”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ServisFirst Bancshares	$1.02 billion	4.59	$276.60 million	$5.06	16.91
Southern Banc	$12.13 million	0.71	$920,000.00	$1.21	8.78

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for ServisFirst Bancshares and Southern Banc, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ServisFirst Bancshares	0	1	2	2	3.20
Southern Banc	0	0	0	0	0.00

ServisFirst Bancshares presently has a consensus price target of $91.00, suggesting a potential upside of 6.35%. Given ServisFirst Bancshares’ stronger consensus rating and higher possible upside, research analysts clearly believe ServisFirst Bancshares is more favorable than Southern Banc.

Institutional & Insider Ownership

67.3% of ServisFirst Bancshares shares are owned by institutional investors. 6.7% of ServisFirst Bancshares shares are owned by company insiders. Comparatively, 22.0% of Southern Banc shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ServisFirst Bancshares	26.95%	16.36%	1.61%
Southern Banc	7.55%	5.65%	0.75%

Summary

ServisFirst Bancshares beats Southern Banc on 14 of the 15 factors compared between the two stocks.

About ServisFirst Bancshares

ServisFirst Bancshares, Inc. operates as the bank holding company for ServisFirst Bank that provides various banking services to individual and corporate customers. It accepts demand, time, savings, and other deposits; checking, money market, and IRA accounts; and certificates of deposit. The company's loan products include commercial lending products, including seasonal, bridge, and term loans for working capital, expansion of the business, acquisition of property, and plant and equipment, as well as commercial lines of credit; commercial real estate loans, construction and development loans, and residential real estate loans; and consumer loans, such as home equity loans, vehicle financing, loans secured by deposits, and secured and unsecured personal loans. It also offers other banking products and services comprising telephone and mobile banking, Internet banking, direct deposit, traveler's checks, safe deposit boxes, attorney trust accounts, automatic account transfers, automated teller machines, and debit and credit card systems; treasury and cash management services; wire transfer, night depository, banking-by-mail, and remote capture services; and correspondent banking services to other financial institutions. In addition, the company holds and manages participations in residential mortgages and commercial real estate loans originated by ServisFirst Bank in Alabama, Florida, Georgia, and Tennessee. The company was founded in 2005 and is headquartered in Birmingham, Alabama.

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.