Contrasting Blackhawk Bancorp (OTCMKTS:BHWB) and ServisFirst Bancshares (NYSE:SFBS)

ServisFirst Bancshares (NYSE:SFBS) and Blackhawk Bancorp (OTCMKTS:BHWB) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, profitability, valuation and risk.

Profitability

This table compares ServisFirst Bancshares and Blackhawk Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ServisFirst Bancshares	25.24%	15.67%	1.50%
Blackhawk Bancorp	N/A	N/A	N/A

Insider & Institutional Ownership

67.3% of ServisFirst Bancshares shares are owned by institutional investors. 6.7% of ServisFirst Bancshares shares are owned by insiders. Comparatively, 26.8% of Blackhawk Bancorp shares are owned 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.

Earnings and Valuation

This table compares ServisFirst Bancshares and Blackhawk Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ServisFirst Bancshares	$981.18 million	4.22	$227.24 million	$4.67	16.23
Blackhawk Bancorp	N/A	N/A	N/A	N/A	N/A

ServisFirst Bancshares has higher revenue and earnings than Blackhawk Bancorp.

Analyst Ratings

This is a summary of recent ratings and price targets for ServisFirst Bancshares and Blackhawk Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ServisFirst Bancshares	0	3	2	0	2.40
Blackhawk Bancorp	0	0	0	0	0.00

ServisFirst Bancshares currently has a consensus target price of $88.00, suggesting a potential upside of 16.07%. Given ServisFirst Bancshares’ stronger consensus rating and higher possible upside, equities research analysts plainly believe ServisFirst Bancshares is more favorable than Blackhawk Bancorp.

Summary

ServisFirst Bancshares beats Blackhawk Bancorp on 8 of the 9 factors compared between the two stocks.

About ServisFirst Bancshares

ServisFirst Bancshares, Inc. operates as the bank holding company for ServisFirst Bank that provides various banking services to individual and corporate customers. It accepts demand, time, savings, and other deposits; checking, money market, and IRA accounts; and certificates of deposit. The company's loan products include commercial lending products, including seasonal, bridge, and term loans for working capital, expansion of the business, acquisition of property, and plant and equipment, as well as commercial lines of credit; commercial real estate loans, construction and development loans, and residential real estate loans; and consumer loans, such as home equity loans, vehicle financing, loans secured by deposits, and secured and unsecured personal loans. It also offers other banking products and services comprising telephone and mobile banking, Internet banking, direct deposit, traveler's checks, safe deposit boxes, attorney trust accounts, automatic account transfers, automated teller machines, and debit and credit card systems; treasury and cash management services; wire transfer, night depository, banking-by-mail, and remote capture services; and correspondent banking services to other financial institutions. In addition, the company holds and manages participations in residential mortgages and commercial real estate loans originated by ServisFirst Bank in Alabama, Florida, Georgia, and Tennessee. The company was founded in 2005 and is headquartered in Birmingham, Alabama.

About Blackhawk Bancorp

Blackhawk Bancorp, Inc., a financial holding company, provides various banking products and services in the United States. The company offers personal banking products and services, including checking, savings, health savings, and money market accounts, as well as certificates of deposit; personal, auto, student, and home improvement and equity loans; and lines of credit and credit cards. It also provides business banking products and services, such as business checking, business interest checking, business sweep, small business checking, business NOW, health savings, and money market accounts; commercial, development, term, equipment/fixed asset, and small business administration loans; lines and letters of credit; receivables financing; and corporate credit cards, as well as treasury management solutions. In addition, the company offers payments and transfer, mortgages lending, financial planning, wealth management, security brokerage, investment management, commercial banking, and online and mobile banking services, as well as installment loans. It serves individual, corporate, institutional, and governmental customers through its 11 full-services banking centers in northern Illinois and southern Wisconsin. The company was founded in 1881 and is headquartered in Beloit, Wisconsin.