Spirit of Texas Bancshares (NASDAQ:STXB) and Old Line Bancshares, Inc. (MD) (NASDAQ:OLBK) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Profitability

This table compares Spirit of Texas Bancshares and Old Line Bancshares, Inc. (MD)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Spirit of Texas Bancshares 17.90% 8.46% 1.17%
Old Line Bancshares, Inc. (MD) 26.40% 9.56% 1.21%

Earnings and Valuation

This table compares Spirit of Texas Bancshares and Old Line Bancshares, Inc. (MD)’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Spirit of Texas Bancshares $67.83 million 5.31 $9.98 million $1.05 21.24
Old Line Bancshares, Inc. (MD) $123.25 million 3.98 $27.22 million $2.19 13.16

Old Line Bancshares, Inc. (MD) has higher revenue and earnings than Spirit of Texas Bancshares. Old Line Bancshares, Inc. (MD) is trading at a lower price-to-earnings ratio than Spirit of Texas Bancshares, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

43.4% of Spirit of Texas Bancshares shares are held by institutional investors. Comparatively, 50.5% of Old Line Bancshares, Inc. (MD) shares are held by institutional investors. 15.0% of Spirit of Texas Bancshares shares are held by company insiders. Comparatively, 12.4% of Old Line Bancshares, Inc. (MD) shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Spirit of Texas Bancshares has a beta of -0.13, indicating that its share price is 113% less volatile than the S&P 500. Comparatively, Old Line Bancshares, Inc. (MD) has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Spirit of Texas Bancshares and Old Line Bancshares, Inc. (MD), as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Spirit of Texas Bancshares 0 0 3 0 3.00
Old Line Bancshares, Inc. (MD) 0 2 2 0 2.50

Spirit of Texas Bancshares presently has a consensus price target of $24.27, suggesting a potential upside of 8.85%. Old Line Bancshares, Inc. (MD) has a consensus price target of $33.00, suggesting a potential upside of 14.46%. Given Old Line Bancshares, Inc. (MD)’s higher probable upside, analysts clearly believe Old Line Bancshares, Inc. (MD) is more favorable than Spirit of Texas Bancshares.

Summary

Old Line Bancshares, Inc. (MD) beats Spirit of Texas Bancshares on 9 of the 14 factors compared between the two stocks.

About Spirit of Texas Bancshares

Spirit of Texas Bancshares, Inc. operates as the holding company for Spirit of Texas Bank SSB that provides various commercial and retail banking services to small and medium-sized businesses and individuals. It offers checking accounts, money market accounts, savings accounts, certificates of deposit, and IRA accounts. The company also provides commercial and industrial loans; 1-4 single family residential real estate loans; construction, land, and development loans; commercial real estate loans, such as owner-occupied commercial real estate loans, other commercial real estate loans, and multifamily loans and farmland; consumer loans and leases; and municipal and other loans. In addition, it offers debit and credit cards, safe deposit boxes, wire transfer and treasury management services, and online banking services; and invests in U.S. Treasury bills and notes, as well as in securities of federally sponsored agencies, such as Federal Home Loan Bank bonds. The company operates through a network of 23 full-service branches located in the Houston, Dallas/Fort Worth, and Bryan/College Station metropolitan areas, as well as North Central Texas. Spirit of Texas Bancshares, Inc. was founded in 2008 and is headquartered in Conroe, Texas.

About Old Line Bancshares, Inc. (MD)

Old Line Bancshares, Inc. operates as the bank holding company for Old Line Bank that provides banking products and services to small and medium size businesses, entrepreneurs, professionals, consumers, and high net worth clients. The company accepts a range of deposit products, including demand, NOW, money market, and savings accounts, as well as certificates of deposit. It also offers commercial and industrial loans, such as lines of credit, revolving credit facilities, accounts receivable financing, term loans, equipment loans, small business administration loans, standby letters of credit, and unsecured loans; commercial real estate loans; funds for the construction of single family residences, financing to builders for the construction of pre-sold homes, and loans for multi-family housing, as well as home equity and home improvement loans; land acquisition and development loans; and consumer installment loans. In addition, the company provides safe deposit boxes, wire transfer services, automated teller machine services, and Internet and mobile banking services; debit, prepaid, and credit cards; commercial account services comprising direct deposit of payroll, overnight sweep, lockbox, and remote deposit capture; and investment services consisting of investment management, estate and succession planning, and brokerage services. As of December 31, 2018, it operated a total of 37 branches and 9 loan production offices in suburban Maryland counties of Anne Arundel, Calvert, Charles, Frederick, Harford, Howard, Prince George's, Montgomery, and St. Mary's; and Baltimore and Carroll. Old Line Bancshares, Inc. was founded in 1989 and is headquartered in Bowie, Maryland.

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