Solera National Bancorp (OTCMKTS:SLRK) & QCR (NASDAQ:QCRH) Head to Head Survey

QCR (NASDAQ:QCRH) and Solera National Bancorp (OTCMKTS:SLRK) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.

Valuation & Earnings

This table compares QCR and Solera National Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QCR	$603.75 million	2.45	$127.19 million	$7.51	11.72
Solera National Bancorp	$83.83 million	0.93	$23.02 million	$5.35	3.38

QCR has higher revenue and earnings than Solera National Bancorp. Solera National Bancorp is trading at a lower price-to-earnings ratio than QCR, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

70.0% of QCR shares are held by institutional investors. 3.7% of QCR shares are held by company insiders. Comparatively, 17.4% of Solera National Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and price targets for QCR and Solera National Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QCR	0	2	4	0	2.67
Solera National Bancorp	0	0	0	0	0.00

QCR currently has a consensus target price of $102.25, suggesting a potential upside of 16.21%. Given QCR’s stronger consensus rating and higher probable upside, analysts clearly believe QCR is more favorable than Solera National Bancorp.

Volatility and Risk

QCR has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500. Comparatively, Solera National Bancorp has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500.

Profitability

This table compares QCR and Solera National Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
QCR	21.07%	12.30%	1.39%
Solera National Bancorp	27.46%	N/A	N/A

Summary

QCR beats Solera National Bancorp on 12 of the 14 factors compared between the two stocks.

About QCR

QCR Holdings, Inc., a multi-bank holding company, provides commercial and consumer banking, and trust and asset management services. The company’s deposit products include noninterest-bearing demand, interest-bearing demand, time, and brokered deposits. It also provides various commercial and retail lending/leasing, and investment services to corporations, partnerships, individuals, and government agencies. The company’s loan portfolio comprises loans to small and mid-sized businesses; business loans, including lines of credit for working capital and operational purposes; term loans for the acquisition of facilities, equipment, and other purposes; commercial and residential real estate loans; and installment and other consumer loans, such as home improvement, home equity, motor vehicle, and signature loans, as well as small personal credit lines. In addition, it engages in leasing of machinery and equipment to commercial and industrial businesses under direct financing lease contracts; and issuance of trust preferred securities. QCR Holdings, Inc. was incorporated in 1993 and is headquartered in Moline, Illinois.

About Solera National Bancorp

Solera National Bancorp, Inc. operates as the bank holding company for Solera National Bank that provides commercial and consumer banking services in the United States. The company offers checking and savings accounts, money market accounts, time and demand deposits, and individual retirement accounts (IRA), as well as certificates of deposit; and real estate secured loans, construction loans, small business administration loans, business lines of credit, and equipment financing. It also provides online banking, account analysis, combined account analysis, commercial sweep, remote deposit, ACH origination, payroll direct deposit, merchant, business debit card, and cash management services. The company was incorporated in 2006 and is based in Lakewood, Colorado.