Critical Survey: Lakeland Financial (NASDAQ:LKFN) and Equitable Financial (OTCMKTS:EQFN)

Equitable Financial (OTCMKTS:EQFN) and Lakeland Financial (NASDAQ:LKFN) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Institutional and Insider Ownership

7.2% of Equitable Financial shares are owned by institutional investors. Comparatively, 81.2% of Lakeland Financial shares are owned by institutional investors. 11.3% of Equitable Financial shares are owned by company insiders. Comparatively, 3.0% of Lakeland Financial shares are owned 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.

Risk & Volatility

Equitable Financial has a beta of 0.08, meaning that its share price is 92% less volatile than the S&P 500. Comparatively, Lakeland Financial has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500.

Profitability

This table compares Equitable Financial and Lakeland Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Equitable Financial	9.82%	10.12%	0.97%
Lakeland Financial	21.08%	12.71%	1.30%

Earnings & Valuation

This table compares Equitable Financial and Lakeland Financial”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Equitable Financial	$31.33 million	1.03	$2.71 million	N/A	N/A
Lakeland Financial	$430.00 million	3.90	$93.48 million	$3.50	18.74

Lakeland Financial has higher revenue and earnings than Equitable Financial.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Equitable Financial and Lakeland Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Equitable Financial	0	0	0	0	0.00
Lakeland Financial	0	1	1	0	2.50

Lakeland Financial has a consensus target price of $68.50, indicating a potential upside of 4.43%. Given Lakeland Financial’s stronger consensus rating and higher possible upside, analysts plainly believe Lakeland Financial is more favorable than Equitable Financial.

Summary

Lakeland Financial beats Equitable Financial on 11 of the 12 factors compared between the two stocks.

About Equitable Financial

Equitable Financial Corp. operates as the holding company for Equitable Bank that provides various banking products and services in Nebraska, the United States. The company offers checking and savings accounts; recorder checks; online and mobile banking; remote deposit capture; voice banking; credit card processing; debit and gift cards; and safe deposit boxes. It also provides home, home equity, auto, personal, real estate and construction, operating lines of credit, small business administration, and agricultural loans, as well as equipment financing. In addition, the company offers foreign currency and exchanges; financial planning; wealth management; investment advisory; and retirement services. It operates through branches located in Grand Island, North Platte, and Omaha. The company was founded in 1882 and is headquartered in Grand Island, Nebraska.

About Lakeland Financial

Lakeland Financial Corporation operates as the bank holding company for Lake City Bank that provides various banking products and services in the United States. The company accepts various deposit products, such as noninterest bearing, interest-bearing checking, savings, money market, NOW, and demand deposits. Its loan products include commercial and industrial, commercial real estate and multi-family residential, construction, agri-business and agricultural, consumer 1-4 family mortgage, and other commercial and consumer loans. The company also provides retail and merchant credit card services; corporate treasury management, wealth advisory, and trust services; retail brokerage services, including various financial and investment products, such as annuities and life insurance; and mobile business banking and on-line treasury management services. It serves commercial real estate, manufacturing, agriculture, construction, retail, wholesale, finance and insurance, accommodation and food services, and health care industries. The company was founded in 1872 and is headquartered in Warsaw, Indiana.