Head-To-Head Survey: Wintrust Financial (NASDAQ:WTFC) & Surrey Bancorp (NASDAQ:SRYB)

Wintrust Financial (NASDAQ:WTFC) and Surrey Bancorp (OTCMKTS:SRYB) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, institutional ownership, earnings and profitability.

Institutional and Insider Ownership

88.6% of Wintrust Financial shares are held by institutional investors. Comparatively, 4.1% of Surrey Bancorp shares are held by institutional investors. 1.6% of Wintrust Financial shares are held by company insiders. Comparatively, 33.7% of Surrey Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Wintrust Financial has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, Surrey Bancorp has a beta of 0.17, meaning that its share price is 83% less volatile than the S&P 500.

Dividends

Wintrust Financial pays an annual dividend of $1.00 per share and has a dividend yield of 1.6%. Surrey Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 2.7%. Wintrust Financial pays out 17.1% of its earnings in the form of a dividend. Wintrust Financial has increased its dividend for 5 consecutive years.

Analyst Ratings

This is a summary of current ratings and price targets for Wintrust Financial and Surrey Bancorp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wintrust Financial 0 0 6 1 3.14
Surrey Bancorp 0 0 0 0 N/A

Wintrust Financial currently has a consensus price target of $89.33, indicating a potential upside of 44.79%. Given Wintrust Financial’s higher probable upside, analysts clearly believe Wintrust Financial is more favorable than Surrey Bancorp.

Earnings & Valuation

This table compares Wintrust Financial and Surrey Bancorp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Wintrust Financial $1.53 billion 2.29 $343.17 million $5.86 10.53
Surrey Bancorp $16.35 million 3.66 $5.10 million N/A N/A

Wintrust Financial has higher revenue and earnings than Surrey Bancorp.

Profitability

This table compares Wintrust Financial and Surrey Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wintrust Financial 20.60% 10.72% 1.07%
Surrey Bancorp 31.20% N/A N/A

Summary

Wintrust Financial beats Surrey Bancorp on 10 of the 16 factors compared between the two stocks.

Wintrust Financial Company Profile

Wintrust Financial Corporation operates as a financial holding company in the Chicago metropolitan area, southern Wisconsin, and northwest Indiana. It operates in three segments: Community Banking, Specialty Finance, and Wealth Management. The Community Banking segment offers non-interest bearing deposits, non-brokered interest-bearing transaction accounts, and savings and domestic time deposits; home equity, consumer, and real estate loans; safe deposit facilities; and automatic teller machine (ATM), Internet banking, and other services. It also engages in the origination and purchase of residential mortgages for sale into the secondary market; and provision of lending, deposits, and cash management services to condominium, homeowner, and community associations, as well as asset-based lending for middle-market companies. In addition, this segment offers loan and deposit services to mortgage brokerage companies; lending to restaurant franchisees; direct leasing; small business administration loans; commercial mortgages and construction loans; and financial solutions. It provides personal and commercial banking services primarily to individuals, small to mid-sized businesses, local governmental units, and institutional customers. The Specialty Finance segment offers commercial and life insurance premiums financing for businesses and individuals; accounts receivable financing, value-added, and out-sourced administrative services; and other specialty finance services, as well as data processing of payrolls, billing, and cash management services to temporary staffing industry. The Wealth Management segment provides trust and investment, asset management, tax-deferred exchange services, securities brokerage, and retirement plan services. As of December 31, 2018, the company had approximately 167 banking facilities and 222 ATMs. Wintrust Financial Corporation was founded in 1991 and is headquartered in Rosemont, Illinois.

Surrey Bancorp Company Profile

Surrey Bancorp operates as the bank holding company for Surrey Bank & Trust that provides banking services for individuals and small to medium sized businesses in Surry County, North Carolina and Patrick County, Virginia, and the surrounding area. Its deposit products include checking accounts, savings accounts, certificates of deposit, and individual retirement accounts. The company also offers mortgages, real estate loans, personal loans and lines of credit, commercial credit products, government-guaranteed loans, and credit cards. In addition, the company provides cash management services, electronic banking, other business services, international services, merchant card services, commercial and personal property and casualty insurance, and brokerage and investment services. The company was founded in 1996 and is based in Mount Airy, North Carolina.

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