QCR Holdings (NASDAQ: QCRH) and Guaranty Bancshares (NASDAQ:GNTY) 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, risk, institutional ownership, earnings, dividends, analyst recommendations and valuation.

Institutional and Insider Ownership

62.2% of QCR Holdings shares are held by institutional investors. Comparatively, 19.4% of Guaranty Bancshares shares are held by institutional investors. 8.8% of QCR Holdings shares are held by insiders. Comparatively, 34.1% of Guaranty Bancshares shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares QCR Holdings and Guaranty Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
QCR Holdings 21.11% 11.17% 0.97%
Guaranty Bancshares N/A N/A N/A

Analyst Ratings

This is a summary of current recommendations and price targets for QCR Holdings and Guaranty Bancshares, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
QCR Holdings 0 0 3 0 3.00
Guaranty Bancshares 0 2 0 0 2.00

QCR Holdings currently has a consensus target price of $53.33, suggesting a potential upside of 8.95%. Guaranty Bancshares has a consensus target price of $34.00, suggesting a potential upside of 15.10%. Given Guaranty Bancshares’ higher possible upside, analysts clearly believe Guaranty Bancshares is more favorable than QCR Holdings.

Volatility and Risk

QCR Holdings has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500. Comparatively, Guaranty Bancshares has a beta of 0.03, meaning that its share price is 97% less volatile than the S&P 500.

Valuation and Earnings

This table compares QCR Holdings and Guaranty Bancshares’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
QCR Holdings $131.81 million 4.90 $32.03 million $2.43 20.14
Guaranty Bancshares $67.66 million 4.81 N/A N/A N/A

QCR Holdings has higher revenue and earnings than Guaranty Bancshares.

Dividends

QCR Holdings pays an annual dividend of $0.20 per share and has a dividend yield of 0.4%. Guaranty Bancshares pays an annual dividend of $0.52 per share and has a dividend yield of 1.8%. QCR Holdings pays out 8.2% of its earnings in the form of a dividend.

Summary

QCR Holdings beats Guaranty Bancshares on 10 of the 14 factors compared between the two stocks.

QCR Holdings Company Profile

QCR Holdings, Inc. is a multi-bank holding company. The Company serves the Quad Cities, Cedar Rapids, Waterloo/Cedar Falls, Des Moines/Ankeny and Rockford communities through its banking subsidiaries, Quad City Bank and Trust Company (QCBT), Cedar Rapids Bank and Trust Company (CRBT), Community State Bank (CSB), and Rockford Bank and Trust Company (RB&T), which provide full-service commercial and consumer banking and trust and asset management services. It is also engaged in direct financing lease contracts through m2 Lease Funds, LLC (m2), a subsidiary of QCBT. Its principal business consists of attracting deposits and investing those deposits in loans/leases and securities. The Company and its subsidiaries provide a range of commercial and retail lending/leasing, and investment services to corporations, partnerships, individuals and government agencies. It offers a range of loans, including one- to four-family residential loans and multi-family loans.

Guaranty Bancshares Company Profile

Guaranty Bancshares, Inc. is the holding company for Guaranty Bank & Trust (Guaranty). Guaranty offers various solutions, such as personal banking, business banking, mortgage and wealth management. Its personal banking solutions include checking accounts, which include compare accounts, green checking, student checking, choice checking, guaranty interest checking, order checks and debit cards; savings accounts, which include regular savings, premier money market, certificate of deposit, individual retirement account (IRA) options and health savings account, and online banking, which includes money desktop and e-statements. Guaranty offers various loans, including line of credit, small business administration loans and real estate loans. Guaranty also offers mobile banking solutions, mortgage warehouse lending solutions and treasury management solutions. It has approximately 30 bank locations in over 20 Texas communities.

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