National Bank (NYSE:NBHC – Get Free Report) and USCB Financial (NASDAQ:USCB – Get Free Report) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, profitability, institutional ownership, valuation, dividends, analyst recommendations and risk.
Analyst Recommendations
This is a breakdown of recent ratings for National Bank and USCB Financial, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| National Bank | 0 | 3 | 3 | 0 | 2.50 |
| USCB Financial | 0 | 1 | 3 | 1 | 3.00 |
National Bank currently has a consensus target price of $44.75, indicating a potential upside of 7.17%. USCB Financial has a consensus target price of $22.00, indicating a potential upside of 10.72%. Given USCB Financial’s stronger consensus rating and higher probable upside, analysts plainly believe USCB Financial is more favorable than National Bank.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| National Bank | $423.94 million | 3.73 | $109.57 million | $2.85 | 14.65 |
| USCB Financial | $159.60 million | 2.25 | $26.10 million | $1.30 | 15.28 |
National Bank has higher revenue and earnings than USCB Financial. National Bank is trading at a lower price-to-earnings ratio than USCB Financial, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
92.7% of National Bank shares are owned by institutional investors. Comparatively, 61.3% of USCB Financial shares are owned by institutional investors. 2.9% of National Bank shares are owned by company insiders. Comparatively, 49.5% of USCB Financial shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Dividends
National Bank pays an annual dividend of $1.28 per share and has a dividend yield of 3.1%. USCB Financial pays an annual dividend of $0.40 per share and has a dividend yield of 2.0%. National Bank pays out 44.9% of its earnings in the form of a dividend. USCB Financial pays out 30.8% 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. National Bank has increased its dividend for 10 consecutive years and USCB Financial has increased its dividend for 2 consecutive years. National Bank is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility and Risk
National Bank has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500. Comparatively, USCB Financial has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500.
Profitability
This table compares National Bank and USCB Financial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| National Bank | 18.66% | 8.65% | 1.17% |
| USCB Financial | 16.36% | 14.78% | 1.21% |
Summary
National Bank beats USCB Financial on 9 of the 17 factors compared between the two stocks.
About National Bank
National Bank Holdings Corporation operates as the bank holding company for NBH Bank that provides various banking products and financial services to commercial, business, and consumer clients in the United States. It offers deposit products, including checking, savings, money market, and other deposit accounts, including fixed-rate and fixed maturity time deposits. The company also provides commercial and industrial loans and leases, such as working capital loans, equipment loans, lender finance loans, food and agriculture loans, government and non-profit loans, owner occupied commercial real estate loans, and other commercial loans and leases; non-owner occupied commercial real estate loans consisting of loans on commercial properties, such as office buildings, warehouse/distribution buildings, multi-family, hospitality, and retail buildings; small business administration loans to support small businesses and entrepreneurs; term loans, line of credits, and real estate secured loans; residential real estate loans; and consumer loans. In addition, it offers treasury management solutions comprising online and mobile banking, commercial credit card, wire transfer, automated clearing house, electronic bill payment, lock box, remote deposit capture, merchant processing, cash vault, controlled disbursements, and fraud prevention services, as well as other auxiliary services, including account reconciliation, collections, repurchase accounts, zero balance accounts, and sweep accounts. The company operates through a network of banking centers located in Colorado, the greater Kansas City region, New Mexico, Utah, Wyoming, Idaho, and Texas. It also operates ATMs. The company was formerly known as NBH Holdings Corp. and changed its name to National Bank Holdings Corporation in March 2012. The company was incorporated in 2009 and is headquartered in Greenwood Village, Colorado.
About USCB Financial
USCB Financial Holdings, Inc. operates as the bank holding company for U.S. Century Bank that engages in the provision of various personal and business banking products and services in the United States. It accepts various deposit products, including commercial and consumer checking, money market deposit, savings, and time deposit accounts, as well as certificates of deposit. It also offers loan products, such as small business administration loans, yacht financing, residential and commercial real estate loans; commercial and industrial loans; foreign bank loans; and secured and unsecured consumer loans comprising personal loans, overdrafts, and deposit account collateralized loans. The company also offers lockbox, treasury, commercial payments, cash management, and online banking services, as well as provides title insurance policies for real estate transactions. USCB Financial Holdings, Inc. was founded in 2002 and is headquartered in Miami, Florida.
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