Fidelity Southern (NASDAQ: LION) and Atlantic Capital Bancshares (NASDAQ:ACBI) are both small-cap banks – nec companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.
This table compares Fidelity Southern and Atlantic Capital Bancshares’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Atlantic Capital Bancshares||-3.31%||4.29%||0.50%|
Fidelity Southern pays an annual dividend of $0.48 per share and has a dividend yield of 1.9%. Atlantic Capital Bancshares does not pay a dividend. Fidelity Southern pays out 32.2% of its earnings in the form of a dividend.
Earnings and Valuation
This table compares Fidelity Southern and Atlantic Capital Bancshares’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Fidelity Southern||$292.93 million||2.26||$39.79 million||$1.49||16.55|
|Atlantic Capital Bancshares||$112.46 million||3.99||-$3.73 million||($0.15)||-116.33|
Fidelity Southern has higher revenue and earnings than Atlantic Capital Bancshares. Atlantic Capital Bancshares is trading at a lower price-to-earnings ratio than Fidelity Southern, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
68.9% of Fidelity Southern shares are held by institutional investors. Comparatively, 79.4% of Atlantic Capital Bancshares shares are held by institutional investors. 18.8% of Fidelity Southern shares are held by company insiders. Comparatively, 3.1% of Atlantic Capital Bancshares shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This is a summary of current ratings and target prices for Fidelity Southern and Atlantic Capital Bancshares, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Atlantic Capital Bancshares||0||3||2||0||2.40|
Fidelity Southern currently has a consensus target price of $24.67, suggesting a potential upside of 0.03%. Atlantic Capital Bancshares has a consensus target price of $19.75, suggesting a potential upside of 13.18%. Given Atlantic Capital Bancshares’ stronger consensus rating and higher possible upside, analysts plainly believe Atlantic Capital Bancshares is more favorable than Fidelity Southern.
Fidelity Southern beats Atlantic Capital Bancshares on 9 of the 15 factors compared between the two stocks.
About Fidelity Southern
Fidelity Southern Corporation is a bank holding company. The Company conducts its operations through its subsidiary bank, Fidelity Bank, which is a state chartered bank (the Bank). The Company provides an array of financial products and services for business and retail customers in the metropolitan Atlanta and Jacksonville, Orlando and Sarasota-Bradenton, Florida markets. The Company provides mortgage loans, indirect automobile loans and Small Business Administration (SBA) loans throughout the South and parts of the Midwest. It delivers its products and services through a network of offices located in Southern states. As of December 31, 2016, it owned 55 and leased 10 retail bank branches and it leased 27 loan production offices. The Company is primarily engaged in attracting deposits from individuals and businesses and using these deposits and borrowed funds to originate commercial, residential mortgage, construction and installment loans.
About Atlantic Capital Bancshares
Atlantic Capital Bancshares, Inc. is the bank holding company for Atlantic Capital Bank (the Bank). The Bank operates as a commercial bank. The Bank provides an array of credit, treasury management and deposit products and services to growth businesses, middle market corporations, commercial real estate developers and investors, and private clients. Its wealth management division offers financial planning, trust administration, investment management, brokerage and estate planning services. It also provides selected capital markets, mortgage banking, and electronic banking services to its corporate, business and individual clients. Its private banking credit products include loans to individuals for personal and investment purposes, such as secured installment and term loans, and home equity lines of credit. Its specialty corporate financial services include payments industry banking, financial institutions banking, capital markets services and specialty commercial lending.
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