Head-To-Head Contrast: Southern Banc (OTCMKTS:SRNN) vs. West Bancorporation (NASDAQ:WTBA)

Southern Banc (OTCMKTS:SRNN) and West Bancorporation (NASDAQ:WTBA) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, valuation, institutional ownership, analyst recommendations, earnings and risk.

Earnings and Valuation

This table compares Southern Banc and West Bancorporation”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Southern Banc	$12.13 million	0.75	$920,000.00	$1.22	9.26
West Bancorporation	$202.45 million	2.11	$32.56 million	$1.91	13.22

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

Risk & Volatility

Southern Banc has a beta of -0.09, suggesting that its share price is 109% less volatile than the S&P 500. Comparatively, West Bancorporation has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500.

Insider and Institutional Ownership

44.3% of West Bancorporation shares are held by institutional investors. 22.0% of Southern Banc shares are held by insiders. Comparatively, 4.6% of West Bancorporation shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Southern Banc	7.47%	5.56%	0.74%
West Bancorporation	16.08%	14.59%	0.89%

Analyst Ratings

This is a summary of recent ratings for Southern Banc and West Bancorporation, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Southern Banc	0	0	0	0	0.00
West Bancorporation	0	1	1	1	3.00

West Bancorporation has a consensus price target of $24.00, indicating a potential downside of 4.95%. Given West Bancorporation’s stronger consensus rating and higher possible upside, analysts clearly believe West Bancorporation is more favorable than Southern Banc.

Summary

West Bancorporation beats Southern Banc on 14 of the 15 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 West Bancorporation

West Bancorporation, Inc. operates as the financial holding company provides community banking and trust services to individuals and small- to medium-sized businesses in the United States. It offers deposit services, including checking, savings, and money market accounts, as well as time certificates of deposit. The company also provides loan products comprising commercial real estate loans, construction and land development loans, commercial lines of credit, and commercial term loans; consumer loans, including loans extended to individuals for household, family, and other personal expenditures not secured by real estate; and 1-4 family residential mortgages and home equity loans. In addition, it offers online and mobile banking, treasury management services including cash management, client-generated automated clearing house transactions, remote deposit, and fraud protection services; merchant credit card processing and corporate credit cards; and administration of estates, conservatorships, personal trusts, and agency accounts. The company was founded in 1893 and is headquartered in West Des Moines, Iowa.