Critical Analysis: Thomasville Bancshares (OTCMKTS:THVB) versus Republic Bancorp (NASDAQ:RBCAA)

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

Dividends

Republic Bancorp pays an annual dividend of $1.98 per share and has a dividend yield of 3.0%. Thomasville Bancshares pays an annual dividend of $2.90 per share and has a dividend yield of 3.1%. Republic Bancorp pays out 29.5% of its earnings in the form of a dividend. Thomasville Bancshares pays out 42.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Republic Bancorp has increased its dividend for 27 consecutive years.

Institutional & Insider Ownership

24.4% of Republic Bancorp shares are held by institutional investors. 55.9% of Republic Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Republic Bancorp and Thomasville Bancshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Republic Bancorp	0	2	1	0	2.33
Thomasville Bancshares	0	0	0	0	0.00

Republic Bancorp currently has a consensus target price of $69.00, indicating a potential upside of 3.28%. Given Republic Bancorp’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Republic Bancorp is more favorable than Thomasville Bancshares.

Profitability

This table compares Republic Bancorp and Thomasville Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Republic Bancorp	25.19%	12.27%	1.87%
Thomasville Bancshares	N/A	N/A	N/A

Risk and Volatility

Republic Bancorp has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500. Comparatively, Thomasville Bancshares has a beta of 0.2, suggesting that its share price is 80% less volatile than the S&P 500.

Earnings & Valuation

This table compares Republic Bancorp and Thomasville Bancshares”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Republic Bancorp	$521.34 million	2.51	$131.32 million	$6.72	9.94
Thomasville Bancshares	$137.59 million	4.26	$44.71 million	$6.85	13.50

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

Summary

Republic Bancorp beats Thomasville Bancshares on 13 of the 17 factors compared between the two stocks.

About Republic Bancorp

Republic Bancorp, Inc. operates as a bank holding company for Republic Bank & Trust Company that provides various banking products and services in the United States. It operates in six segments: Traditional Banking, Warehouse, Mortgage Banking, Tax Refund Solutions, Republic Payment Solutions, and Republic Credit Solutions. The company offers demand, money market accounts, savings, individual retirement accounts, time, brokered, and other certificates of deposit; and retail and commercial mortgage, construction and land development, consumer, aircraft, and marine loans. It also provides credit cards; title insurance and other financial products and services; and private banking, lockbox processing, remote deposit capture, business online banking, account reconciliation, automated clearing house processing, and internet and mobile banking services. In addition, it offers short-term and revolving credit facilities to mortgage bankers through mortgage warehouse lines of credit; mortgage banking; tax refund solutions, which facilitate the receipt and payment of federal and state tax refund products through third-party tax preparers and tax-preparation software providers; payments-related products and services to consumers through third party service providers; and consumer credit products. The company offers its services through full-services banking centers in Kentucky, Indiana, Florida, Ohio, and Tennessee. Republic Bancorp, Inc. was incorporated in 1974 and is headquartered in Louisville, Kentucky.

About Thomasville Bancshares

Thomasville Bancshares, Inc. operates as the bank holding company for Thomasville National Bank that provides a range of banking services to individual and corporate customers primarily in Thomas and Glynn counties, Georgia, Leon County, Florida, and the surrounding counties. The company offers checking and savings accounts; money market accounts; and certificates of deposits. It also provides commercial real estate mortgage loans, such as non-farm and non-residential commercial real estate loans, construction loans for commercial businesses, multifamily loans secured by income producing properties, and farmland; and 1-4 family residential loans, including first mortgage liens, junior liens, and home equity lines. In addition, the company offers commercial, financial, and agricultural loans; consumer loans comprising direct consumer instalment loans, overdrafts, and other revolving credit loans and educational loans; and loans to municipalities and development authorities. Further, it provides trust and money management services. The company was incorporated in 1995 and is based in Thomasville, Georgia.