Lakeland Bancorp (NASDAQ: LBAI) and Select Bancorp (NASDAQ:SLCT) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, risk, profitability, valuation, dividends and earnings.
Risk and Volatility
Lakeland Bancorp has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500. Comparatively, Select Bancorp has a beta of 0.19, indicating that its stock price is 81% less volatile than the S&P 500.
This table compares Lakeland Bancorp and Select Bancorp’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Lakeland Bancorp||$215.64 million||4.48||$52.58 million||$1.10||18.55|
|Select Bancorp||$37.93 million||3.96||$6.75 million||$0.58||22.21|
Lakeland Bancorp has higher revenue and earnings than Select Bancorp. Lakeland Bancorp is trading at a lower price-to-earnings ratio than Select Bancorp, indicating that it is currently the more affordable of the two stocks.
Lakeland Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 2.0%. Select Bancorp does not pay a dividend. Lakeland Bancorp pays out 36.4% of its earnings in the form of a dividend.
This table compares Lakeland Bancorp and Select Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
53.0% of Lakeland Bancorp shares are held by institutional investors. Comparatively, 19.5% of Select Bancorp shares are held by institutional investors. 6.2% of Lakeland Bancorp shares are held by company insiders. Comparatively, 14.2% of Select Bancorp shares are held by company 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.
This is a summary of current ratings and recommmendations for Lakeland Bancorp and Select Bancorp, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Lakeland Bancorp presently has a consensus target price of $24.50, suggesting a potential upside of 20.10%. Select Bancorp has a consensus target price of $13.00, suggesting a potential upside of 0.93%. Given Lakeland Bancorp’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Lakeland Bancorp is more favorable than Select Bancorp.
Lakeland Bancorp beats Select Bancorp on 13 of the 16 factors compared between the two stocks.
About Lakeland Bancorp
Lakeland Bancorp, Inc. is the bank holding company for Lakeland Bank (Lakeland). Lakeland operates under a state bank charter and provides full banking services. Lakeland generates commercial, mortgage and consumer loans and receives deposits from customers located in Northern and Central New Jersey. Lakeland also provides non-deposit products, such as securities brokerage services, including mutual funds and variable annuities. Through Lakeland, the Company offers a range of lending, depository and related financial services to individuals and small to medium sized businesses located in northern and central New Jersey. Lakeland’s equipment financing division provides a solution to small and medium sized companies preferring to lease equipment over other financial alternatives. Lakeland’s asset based loan department provides commercial borrowers with another lending alternative. It also offers wire transfer, Internet banking, mobile banking and night depository services.
About Select Bancorp
Select Bancorp, Inc. is the bank holding company for Select Bank & Trust Company (the Bank). The Bank is a commercial bank. The Bank provides commercial and retail financial services to customers located in its market areas. The Bank offers a range of banking services, including checking and savings accounts, commercial, consumer, mortgage and personal loans, and other associated financial services. The Bank’s lending activities are oriented to the consumer/retail customer, as well as to the small-to-medium sized businesses located in central and eastern North Carolina. The Bank offers commercial, consumer and mortgage lending products. It originates construction loans for the purpose of acquisition, development and construction of both residential and commercial properties (ADC loans). The Bank’s deposits include savings, negotiable order of withdrawal (NOW) account and money market deposits, time deposits and non-interest-bearing deposits.
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