Comparing Banner (NASDAQ:BANR) and Carver Bancorp (NASDAQ:CARV)

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

Volatility and Risk

Banner has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500. Comparatively, Carver Bancorp has a beta of 1.55, indicating that its stock price is 55% more volatile than the S&P 500.

Institutional and Insider Ownership

87.3% of Banner shares are held by institutional investors. Comparatively, 18.2% of Carver Bancorp shares are held by institutional investors. 1.7% of Banner shares are held by company insiders. Comparatively, 1.3% of Carver Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Banner and Carver Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banner	22.26%	10.46%	1.21%
Carver Bancorp	-34.89%	-171.55%	-1.82%

Earnings & Valuation

This table compares Banner and Carver Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banner	$877.77 million	2.49	$195.38 million	$5.64	11.45
Carver Bancorp	$22.74 million	0.38	-$13.74 million	($1.72)	-0.83

Banner has higher revenue and earnings than Carver Bancorp. Carver Bancorp 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 current recommendations for Banner and Carver Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banner	0	3	4	0	2.57
Carver Bancorp	1	0	0	0	1.00

Banner presently has a consensus target price of $70.00, suggesting a potential upside of 8.39%. Given Banner’s stronger consensus rating and higher probable upside, research analysts clearly believe Banner is more favorable than Carver Bancorp.

Summary

Banner beats Carver Bancorp on 13 of the 14 factors compared between the two stocks.

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.

About Carver Bancorp

Carver Bancorp, Inc. operates as the holding company for Carver Federal Savings Bank that provides consumer and commercial banking services for consumers, businesses, non-profit organizations, and governmental and quasi-governmental agencies primarily in New York. It accepts various deposit products, including demand, savings, and time deposits; passbook and statement accounts, and certificates of deposit; and individual retirement accounts. The company provides lending products, such as one-to-four family residential, multifamily real estate, and commercial real estate lending; and construction, business and small business administration, and consumer and other loans. In addition, it offers other consumer and commercial banking products and services, including debit cards, online account opening and banking, online bill pay, and telephone banking, as well as check cashing, wire transfer, bill payment, reloadable prepaid card, and money order services. Carver Bancorp, Inc. was founded in 1948 and is headquartered in New York, New York.