Square 1 Financial (NASDAQ: SQBK) and IBERIABANK Corporation (NASDAQ:IBKC) are both financials companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, risk, dividends, valuation and earnings.

Profitability

This table compares Square 1 Financial and IBERIABANK Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Square 1 Financial 25.41% 12.33% 1.10%
IBERIABANK Corporation 17.14% 6.79% 0.99%

Dividends

IBERIABANK Corporation pays an annual dividend of $1.48 per share and has a dividend yield of 2.0%. Square 1 Financial does not pay a dividend. IBERIABANK Corporation pays out 42.0% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Square 1 Financial and IBERIABANK Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Square 1 Financial 0 0 1 0 3.00
IBERIABANK Corporation 0 4 7 2 2.85

IBERIABANK Corporation has a consensus target price of $88.60, indicating a potential upside of 20.46%. Given IBERIABANK Corporation’s higher probable upside, analysts plainly believe IBERIABANK Corporation is more favorable than Square 1 Financial.

Institutional and Insider Ownership

80.9% of IBERIABANK Corporation shares are owned by institutional investors. 2.5% of IBERIABANK Corporation shares are owned 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.

Earnings and Valuation

This table compares Square 1 Financial and IBERIABANK Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Square 1 Financial N/A N/A N/A N/A N/A
IBERIABANK Corporation $861.72 million 4.58 $188.77 million $3.52 20.89

IBERIABANK Corporation has higher revenue and earnings than Square 1 Financial.

Summary

IBERIABANK Corporation beats Square 1 Financial on 7 of the 12 factors compared between the two stocks.

About Square 1 Financial

Square 1 Financial, Inc. is a financial services company. The Company is a bank holding company for Square 1 Bank. Through Square 1 Bank, the Company offers a range of banking and financial products and services throughout the United States, focused on the entrepreneurial community and venture capital and private equity firms. Its primary focus is on venture-backed technology and life sciences companies located throughout the United States. It also focuses on venture firms. The Company is also involved in networking activities in the startup communities in several of its markets. It maintains a presence in these communities through participation in events sponsored by incubators or accelerators, which are informal associations engaged in a range of activities designed to promote and encourage the startup and development of new companies.

About IBERIABANK Corporation

IBERIABANK Corporation is a financial holding company. The Company is a holding company for IBERIABANK, a Louisiana state chartered banking corporation; Lenders Title Company, an Arkansas-chartered title insurance and closing services agency (Lenders Title); IBERIA Capital Partners LLC (ICP), a corporate finance services firm; 1887 Leasing, LLC, a holding company for its aircraft; IBERIA Asset Management, Inc. (IAM), which provides wealth management and trust advisory services to high net worth individuals, pension funds, corporations and trusts; 840 Denning, LLC, which invests in a commercial rental property, and IBERIA CDE, LLC (CDE), which invests in purchased tax credits. IBERIABANK offers commercial and retail banking products and services. These products and services include an array of commercial, consumer, mortgage, and private banking products and services, trust advisory services, cash management, deposit and annuity products.

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