QCR (NASDAQ: QCRH) and Central Valley Community Bancorp (NASDAQ:CVCY) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, earnings, institutional ownership, valuation and risk.

Volatility and Risk

QCR has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500. Comparatively, Central Valley Community Bancorp has a beta of 0.24, indicating that its stock price is 76% less volatile than the S&P 500.

Profitability

This table compares QCR and Central Valley Community Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
QCR 21.78% 11.78% 1.02%
Central Valley Community Bancorp 24.80% 9.41% 1.13%

Dividends

QCR pays an annual dividend of $0.20 per share and has a dividend yield of 0.5%. Central Valley Community Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 1.2%. QCR pays out 7.8% of its earnings in the form of a dividend. Central Valley Community Bancorp pays out 18.2% 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.

Institutional and Insider Ownership

59.7% of QCR shares are owned by institutional investors. Comparatively, 40.7% of Central Valley Community Bancorp shares are owned by institutional investors. 8.8% of QCR shares are owned by insiders. Comparatively, 21.6% of Central Valley Community Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares QCR and Central Valley Community Bancorp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
QCR $137.51 million 4.46 $27.68 million $2.55 17.31
Central Valley Community Bancorp $56.27 million 4.67 $15.18 million $1.32 14.67

QCR has higher revenue and earnings than Central Valley Community Bancorp. Central Valley Community Bancorp is trading at a lower price-to-earnings ratio than QCR, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and price targets for QCR and Central Valley Community Bancorp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
QCR 0 0 3 0 3.00
Central Valley Community Bancorp 0 1 0 0 2.00

QCR currently has a consensus target price of $52.67, suggesting a potential upside of 19.29%. Central Valley Community Bancorp has a consensus target price of $24.00, suggesting a potential upside of 23.97%. Given Central Valley Community Bancorp’s higher possible upside, analysts plainly believe Central Valley Community Bancorp is more favorable than QCR.

Summary

QCR beats Central Valley Community Bancorp on 10 of the 16 factors compared between the two stocks.

About QCR

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), Rockford Bank and Trust Company (RB&T), and Guaranty Bank and Trust Company, 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.

About Central Valley Community Bancorp

Central Valley Community Bancorp is a bank holding company, which operates through its subsidiary, Central Valley Community Bank (the Bank). The Company’s principal business is to provide, through its banking subsidiary, financial services in its primary market area in California. It serves over seven contiguous counties in California’s central valley, including Fresno County, Madera County, Merced County, Sacramento County, San Joaquin County, Stanislaus County, and Tulare County, and surrounding areas through the Bank. The Bank conducts a commercial banking business, which includes accepting demand, savings and time deposits and making commercial, real estate and consumer loans. It operates 24 full-service banking offices in Clovis, Exeter, Fresno, Kerman, Lodi, Madera, Merced, Modesto, Oakhurst, Prather, Sacramento, Stockton, Tracy and Visalia. Its subsidiary also includes the Folsom Lake Bank.

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