Stock Yards Bancorp (NASDAQ: SYBT) and Anchor Bancorp (NASDAQ:ANCB) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.

Analyst Recommendations

This is a summary of current ratings and price targets for Stock Yards Bancorp and Anchor Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stock Yards Bancorp 0 1 0 0 2.00
Anchor Bancorp 0 0 0 0 N/A

Stock Yards Bancorp currently has a consensus price target of $38.00, indicating a potential upside of 0.00%. Given Stock Yards Bancorp’s higher possible upside, equities analysts clearly believe Stock Yards Bancorp is more favorable than Anchor Bancorp.

Profitability

This table compares Stock Yards Bancorp and Anchor Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stock Yards Bancorp 28.11% 13.36% 1.40%
Anchor Bancorp 9.58% 3.63% 0.52%

Dividends

Stock Yards Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 2.1%. Anchor Bancorp does not pay a dividend. Stock Yards Bancorp pays out 43.2% of its earnings in the form of a dividend.

Insider and Institutional Ownership

48.1% of Stock Yards Bancorp shares are held by institutional investors. Comparatively, 42.6% of Anchor Bancorp shares are held by institutional investors. 6.2% of Stock Yards Bancorp shares are held by company insiders. Comparatively, 6.5% of Anchor Bancorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Stock Yards Bancorp and Anchor Bancorp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Stock Yards Bancorp $138.14 million 6.23 $41.92 million $1.85 20.54
Anchor Bancorp $20.91 million 2.90 $2.38 million $0.97 25.52

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

Volatility & Risk

Stock Yards Bancorp has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500. Comparatively, Anchor Bancorp has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500.

Summary

Stock Yards Bancorp beats Anchor Bancorp on 10 of the 14 factors compared between the two stocks.

Stock Yards Bancorp Company Profile

Stock Yards Bancorp, Inc. is the holding company for Stock Yards Bank & Trust Company (the Bank). The Bank is a state chartered bank. The Company operates through two segments: commercial banking, and wealth management and trust. The commercial banking segment provides a full range of loan and deposit products to individual consumers and businesses, plus origination of consumer mortgages and securities brokerage activity. The wealth management and trust segment provides investment management, trust and estate administration, and retirement plan services. The Bank provides commercial and personal banking services in the Louisville, Kentucky, Indianapolis, Indiana and Cincinnati, Ohio metropolitan markets through 37 full service banking offices, as of December 31, 2016. The Bank also originates and sells single-family residential mortgages. Additionally, the Bank offers securities brokerage services via its branch network through an arrangement with a third party broker-dealer.

Anchor Bancorp Company Profile

Anchor Bancorp is the bank holding company of Anchor Bank (the Bank). The Bank is a community-based savings bank. As of June 30, 2016, the Bank primarily served Western Washington through its 10 full-service banking offices (including a Wal-Mart in-store location) located within Grays Harbor, Thurston, Lewis, Pierce and Mason counties, and a loan production office located in King County, Washington. It is in the business of attracting deposits from the public and utilizing those deposits to originate loans. The Bank offers a range of loan products. The Bank’s operations include commercial banking services, such as lending activities, deposit products and other cash management services. The Bank offers commercial real estate loans and multi-family loans primarily in Western Washington. The Bank offers various deposit instruments, including checking accounts, money market deposit accounts, savings accounts and certificates of deposit with a range of rates.

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