QCR (NASDAQ: QCRH) and Capstar Financial (NASDAQ:CSTR) are both small-cap financials companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, profitability, earnings, dividends, institutional ownership, analyst recommendations and risk.
Insider and Institutional Ownership
59.7% of QCR shares are owned by institutional investors. Comparatively, 35.6% of Capstar Financial shares are owned by institutional investors. 8.8% of QCR shares are owned by insiders. Comparatively, 19.3% of Capstar Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
QCR pays an annual dividend of $0.20 per share and has a dividend yield of 0.5%. Capstar Financial does not pay a dividend. QCR pays out 7.8% of its earnings in the form of a dividend.
This is a breakdown of current ratings and target prices for QCR and Capstar Financial, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
QCR currently has a consensus target price of $54.00, indicating a potential upside of 23.15%. Capstar Financial has a consensus target price of $18.00, indicating a potential downside of 17.24%. Given QCR’s stronger consensus rating and higher probable upside, equities research analysts clearly believe QCR is more favorable than Capstar Financial.
This table compares QCR and Capstar Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares QCR and Capstar Financial’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|QCR||$137.51 million||4.43||$27.68 million||$2.55||17.20|
|Capstar Financial||$56.48 million||4.37||$9.09 million||$0.31||70.16|
QCR has higher revenue and earnings than Capstar Financial. QCR is trading at a lower price-to-earnings ratio than Capstar Financial, indicating that it is currently the more affordable of the two stocks.
QCR beats Capstar Financial on 12 of the 15 factors compared between the two stocks.
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 Capstar Financial
CapStar Financial Holdings, Inc. is a bank holding company. The Company operates primarily through its subsidiary, CapStar Bank. CapStar Bank is a commercial bank. The Company’s lines of business include commercial and industrial, commercial real estate, healthcare, correspondent banking, personal and private banking and wealth management, and mortgage banking. Its products and services include commercial and industrial loans to small and medium sized businesses, with a particular focus on businesses operating in the healthcare industry; commercial real estate loans; private banking and wealth management services for the owners and operators of business clients and other high net worth individuals, and correspondent banking services. As of June 30, 2016, the Company had seven locations, five of which are retail bank branches and two of which are mortgage origination offices.
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