Contrasting Solera National Bancorp (OTCMKTS:SLRK) and SmartFinancial (OTCMKTS:SMBK)

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

Profitability

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

Net Margins Return on Equity Return on Assets
SmartFinancial 21.46% 7.81% 0.98%
Solera National Bancorp 31.58% N/A N/A

Volatility & Risk

SmartFinancial has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500. Comparatively, Solera National Bancorp has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500.

Earnings and Valuation

This table compares SmartFinancial and Solera National Bancorp’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SmartFinancial $98.76 million 3.15 $18.10 million $1.55 14.36
Solera National Bancorp $9.05 million 5.28 $2.23 million N/A N/A

SmartFinancial has higher revenue and earnings than Solera National Bancorp.

Dividends

SmartFinancial pays an annual dividend of $0.20 per share and has a dividend yield of 0.9%. Solera National Bancorp does not pay a dividend. SmartFinancial pays out 12.9% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for SmartFinancial and Solera National Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SmartFinancial 0 2 3 0 2.60
Solera National Bancorp 0 0 0 0 N/A

SmartFinancial currently has a consensus price target of $24.00, suggesting a potential upside of 7.82%. Given SmartFinancial’s higher probable upside, analysts plainly believe SmartFinancial is more favorable than Solera National Bancorp.

Institutional and Insider Ownership

40.6% of SmartFinancial shares are held by institutional investors. Comparatively, 1.3% of Solera National Bancorp shares are held by institutional investors. 9.8% of SmartFinancial shares are held by insiders. Comparatively, 17.4% of Solera National Bancorp 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.

Summary

SmartFinancial beats Solera National Bancorp on 10 of the 14 factors compared between the two stocks.

About SmartFinancial

SmartFinancial, Inc. operates as the bank holding company for SmartBank that provides various financial services to individuals and corporate customers in Tennessee, Alabama, Florida, and Georgia. The company offers various deposit products, including interest bearing and non-interest bearing checking accounts, savings accounts, money market accounts, individual retirement accounts, and certificates of deposit. It also provides commercial real estate loans, consumer real estate loans, and construction and land development loans; commercial and industrial loans, including commercial, financial, and agricultural loans; and consumer and other loans, such as direct consumer installment loans, overdrafts and other revolving credit loans, and educational loans. In addition, the company offers Internet and mobile banking services. As of December 31, 2018, it operated through 29 full-service branches located in Tennessee, Alabama, and Florida; and 2 loan production offices, 2 mortgage loan production offices, and 2 service centers. SmartFinancial, Inc. is headquartered in Knoxville, Tennessee.

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 to small and medium-sized businesses, licensed professionals, and individuals in the United States. The company offers deposit products, including checking and savings accounts, and certificates of deposits; and business loan products, such as 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, fraud, business debit card, and cash management services. The company was founded in 2006 and is headquartered in Lakewood, Colorado.

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