Guaranty Bancorp (NASDAQ: GBNK) and ConnectOne Bancorp (NASDAQ:CNOB) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.
This table compares Guaranty Bancorp and ConnectOne Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings and target prices for Guaranty Bancorp and ConnectOne Bancorp, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Guaranty Bancorp presently has a consensus target price of $29.63, indicating a potential upside of 3.40%. ConnectOne Bancorp has a consensus target price of $31.25, indicating a potential upside of 6.47%. Given ConnectOne Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe ConnectOne Bancorp is more favorable than Guaranty Bancorp.
Risk & Volatility
Guaranty Bancorp has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500. Comparatively, ConnectOne Bancorp has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500.
Institutional and Insider Ownership
70.2% of Guaranty Bancorp shares are owned by institutional investors. Comparatively, 68.6% of ConnectOne Bancorp shares are owned by institutional investors. 8.4% of Guaranty Bancorp shares are owned by company insiders. Comparatively, 7.6% of ConnectOne Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Guaranty Bancorp pays an annual dividend of $0.50 per share and has a dividend yield of 1.7%. ConnectOne Bancorp pays an annual dividend of $0.30 per share and has a dividend yield of 1.0%. Guaranty Bancorp pays out 36.5% of its earnings in the form of a dividend. ConnectOne Bancorp pays out 31.9% 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.
Earnings and Valuation
This table compares Guaranty Bancorp and ConnectOne Bancorp’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Guaranty Bancorp||$159.75 million||5.24||$38.62 million||$1.37||20.91|
|ConnectOne Bancorp||$189.53 million||4.96||$43.22 million||$0.94||31.22|
ConnectOne Bancorp has higher revenue and earnings than Guaranty Bancorp. Guaranty Bancorp is trading at a lower price-to-earnings ratio than ConnectOne Bancorp, indicating that it is currently the more affordable of the two stocks.
Guaranty Bancorp beats ConnectOne Bancorp on 8 of the 15 factors compared between the two stocks.
About Guaranty Bancorp
Guaranty Bancorp is a bank holding company. The Company’s bank subsidiary is Guaranty Bank and Trust Company (the Bank). As of December 31, 2016, the Company operated 32 branches and two investment management firms, Private Capital Management LLC (PCM) and Cherry Hills Investment Advisors Inc. (CHIA), in Colorado through the Bank. The Bank provides banking and other financial services, including commercial and industrial loans, real estate loans, construction loans, consumer loans and agriculture loans across its targeted Colorado markets to consumers and small to medium-sized businesses, including the owners and employees of those businesses. Along with loans and depository services, the Bank also provides wealth management solutions, including trust and investment management services. The Bank’s commercial and industrial loan portfolio consists of operating loans secured by business assets.
About ConnectOne Bancorp
ConnectOne Bancorp, Inc. is a bank holding company of ConnectOne Bank (the Bank). The Bank is a community-based, full-service New Jersey-chartered commercial bank. The Bank offers a range of deposit and loan products. In addition, to attract the business of consumer and business customers, it also provides an array of other banking services. Products and services provided include personal and business checking accounts, retirement accounts, money market accounts, time and savings accounts, credit cards, wire transfers, access to automated teller services, Internet banking, Treasury Direct, automated clearing house (ACH) origination, lockbox services and mobile banking by phone. In addition, it offers safe deposit boxes. The Bank also offers remote deposit capture banking for both retail and business customers. It offers a range of deposit and loan products and services to the general public and, in particular, to small and mid-sized businesses, local professionals and individuals.
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