Southern Banc (OTCMKTS:SRNN) and Malvern Bancorp (NASDAQ:MLVF) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, earnings, profitability, institutional ownership, valuation and risk.

Risk & Volatility

Southern Banc has a beta of 0.26, meaning that its stock price is 74% less volatile than the S&P 500. Comparatively, Malvern Bancorp has a beta of 0.28, meaning that its stock price is 72% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Southern Banc and Malvern Bancorp, as reported by MarketBeat.

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

Malvern Bancorp has a consensus target price of $22.50, suggesting a potential upside of 13.29%. Given Malvern Bancorp’s higher probable upside, analysts clearly believe Malvern Bancorp is more favorable than Southern Banc.

Insider & Institutional Ownership

62.5% of Malvern Bancorp shares are held by institutional investors. 22.0% of Southern Banc shares are held by insiders. Comparatively, 3.8% of Malvern Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Southern Banc 7.38% 3.82% 0.44%
Malvern Bancorp 19.24% 7.21% 0.80%

Valuation & Earnings

This table compares Southern Banc and Malvern Bancorp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Southern Banc $5.53 million N/A -$560,000.00 N/A N/A
Malvern Bancorp $43.33 million 3.56 $7.30 million N/A N/A

Malvern Bancorp has higher revenue and earnings than Southern Banc.

Summary

Malvern Bancorp beats Southern Banc on 8 of the 9 factors compared between the two stocks.

Southern Banc Company Profile

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.

Malvern Bancorp Company Profile

Malvern Bancorp, Inc. operates as the bank holding company for Malvern Bank that provides various banking products and services to consumer and business customers in Pennsylvania. The company accepts checking accounts, retirement accounts, money market accounts, time and savings accounts, interest and non-interest bearing accounts, NOW accounts, and CDARS/ICS reciprocal deposits. Its loan products include residential mortgage loans, such as one class and one-to four-family first lien residential mortgage loans; residential and commercial construction loans, and land loans; commercial loans, such as commercial real estate loans, multi-family real estate loans, industrial loans, and commercial business loans; and consumer loans comprising home equity lines of credit, second mortgage loans, and unsecured consumer lines of credit. The company also offers credit cards; wealth management and advisory services, such as liquidity management, investment, 401k accounts and planning, custody, lending, wealth planning, trust and fiduciary, family wealth advisory, and philanthropic advisory services; insurance services; and wire transfer, automated teller, Internet banking, ACH origination, telephone and mobile banking, safe deposit box, remote deposit capture banking, and mobile remote deposit capture banking services. As of September 30, 2018, the company owns and maintains its headquarters and six full-service financial centers; leases financial centers in Glen Mills and Villanova, Pennsylvania; private banking offices in Morristown, New Jersey and Palm Beach, Florida; and leases representative office in Montchanin, Delaware. Malvern Bancorp, Inc. was founded in 1887 and is based in Paoli, Pennsylvania.

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