Territorial Bancorp (NASDAQ:TBNK) and Southern Banc (OTCMKTS:SRNN) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, risk, dividends, earnings and valuation.

Dividends

Territorial Bancorp pays an annual dividend of $0.88 per share and has a dividend yield of 3.3%. Southern Banc does not pay a dividend. Territorial Bancorp pays out 49.4% of its earnings in the form of a dividend. Territorial Bancorp has raised its dividend for 6 consecutive years.

Earnings and Valuation

This table compares Territorial Bancorp and Southern Banc’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Territorial Bancorp $72.18 million 3.60 $14.96 million $1.78 15.11
Southern Banc $5.53 million 1.28 -$560,000.00 N/A N/A

Territorial Bancorp has higher revenue and earnings than Southern Banc.

Analyst Ratings

This is a summary of current ratings and target prices for Territorial Bancorp and Southern Banc, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Territorial Bancorp 0 2 0 0 2.00
Southern Banc 0 0 0 0 N/A

Territorial Bancorp currently has a consensus price target of $32.00, indicating a potential upside of 18.96%. Given Territorial Bancorp’s higher probable upside, equities research analysts clearly believe Territorial Bancorp is more favorable than Southern Banc.

Insider & Institutional Ownership

43.4% of Territorial Bancorp shares are held by institutional investors. 11.7% of Territorial Bancorp shares are held by insiders. Comparatively, 22.0% of Southern Banc shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Territorial Bancorp and Southern Banc’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Territorial Bancorp 22.17% 8.01% 0.93%
Southern Banc -4.69% 3.14% 0.36%

Risk and Volatility

Territorial Bancorp has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500. Comparatively, Southern Banc has a beta of 0.14, suggesting that its stock price is 86% less volatile than the S&P 500.

Summary

Territorial Bancorp beats Southern Banc on 11 of the 13 factors compared between the two stocks.

About Territorial Bancorp

Territorial Bancorp Inc. operates as the holding company for Territorial Savings Bank that provides various financial services to individuals, families, and businesses. The company offers a range of deposit accounts, including passbook and statement savings accounts, certificates of deposit, money market accounts, commercial and regular checking accounts, and NOW accounts. It also provides various loan products comprising one- to four-family residential mortgage loans; home equity loans and lines of credit; construction, commercial, and other non-residential real estate loans; consumer loans; multi-family mortgage loans; commercial business loans; and other loans, as well as offers investment securities. In addition, the company, through its subsidiary, Territorial Financial Services, Inc. engages in insurance agency activities. Further, it provides various non-deposit investments, including annuities and mutual funds through a third-party broker-dealer. The company operates through a network of 29 full-service branches located in the State of Hawaii. Territorial Bancorp Inc. was founded in 1921 and is based in Honolulu, Hawaii.

About Southern Banc

The Southern Banc Company, Inc. operates as the holding company for The Southern Bank Company that provides various banking products and services in Alabama. Its personal banking products include checking accounts, home mortgage loans, home equity loans, auto loans, and personal loans. The company's business banking products comprise business checking accounts, cash flow management, real estate lending, and equipment financing. It also offers commercial accounts, accounts receivable management, factoring services, and online banking and ATM services. The company operates through four full service banking offices located in Gadsden, Albertville, Guntersville, and Centre, as well as through one commercial finance office located in Birmingham. The Southern Banc Company, Inc. was founded in 1936 and is based in Gadsden, Alabama.

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