Financial Survey: QCR (QCRH) versus Renasant (RNST)

QCR (NASDAQ: QCRH) and Renasant (NASDAQ:RNST) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, valuation, risk, institutional ownership, analyst recommendations, earnings and profitability.

Dividends

QCR pays an annual dividend of $0.24 per share and has a dividend yield of 0.5%. Renasant pays an annual dividend of $0.76 per share and has a dividend yield of 1.6%. QCR pays out 9.0% of its earnings in the form of a dividend. Renasant pays out 31.4% 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.

Profitability

This table compares QCR and Renasant’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
QCR 21.13% 11.45% 1.01%
Renasant 19.29% 8.50% 1.26%

Analyst Ratings

This is a breakdown of recent ratings for QCR and Renasant, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
QCR 0 0 5 0 3.00
Renasant 0 3 2 0 2.40

QCR currently has a consensus price target of $53.60, suggesting a potential upside of 11.67%. Renasant has a consensus price target of $45.25, suggesting a potential downside of 4.54%. Given QCR’s stronger consensus rating and higher possible upside, analysts clearly believe QCR is more favorable than Renasant.

Volatility and Risk

QCR has a beta of 0.41, indicating that its share price is 59% less volatile than the S&P 500. Comparatively, Renasant has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500.

Institutional & Insider Ownership

61.3% of QCR shares are owned by institutional investors. Comparatively, 68.2% of Renasant shares are owned by institutional investors. 8.8% of QCR shares are owned by company insiders. Comparatively, 3.4% of Renasant shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares QCR and Renasant’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
QCR $166.00 million 4.03 $35.70 million $2.66 18.05
Renasant $506.89 million 4.62 $92.18 million $2.42 19.59

Renasant has higher revenue and earnings than QCR. QCR is trading at a lower price-to-earnings ratio than Renasant, indicating that it is currently the more affordable of the two stocks.

QCR Company Profile

QCR Holdings, Inc., a multi-bank holding company, provides commercial and consumer banking, and trust and asset management services. The company operates through Commercial Banking and Wealth Management segments. Its deposit products include noninterest and interest-bearing demand, time, and brokered time deposits. The company also provides various commercial and retail lending/leasing, and investment services to corporations, partnerships, individuals, and government agencies. Its loan portfolio comprises loans to small and mid-sized businesses; business loans, including lines of credit for working capital and operational purposes; term loans for the acquisition of facilities, equipment, and other purposes; commercial and residential real estate loans; and installment and other consumer loans, such as home improvement, home equity, motor vehicle, and signature loans, as well as small personal credit lines. In addition, the company engages in leasing machinery and equipment to commercial and industrial businesses under direct financing lease contracts; and issuing various trust preferred securities. It serves the Quad Cities, Cedar Rapids, Waterloo/Cedar Falls, Des Moines/Ankeny, and Rockford communities. The company was founded in 1993 and is headquartered in Moline, Illinois.

Renasant Company Profile

Renasant Corporation operates as a bank holding company for Renasant Bank, which provides a range of financial, wealth management, fiduciary, and insurance services to retail and commercial customers. It operates through three segments: Community Banks, Insurance, and Wealth Management. The Community Banks segment offers checking and savings, money market, individual retirement, and health savings accounts, as well as safe deposit and night depository facilities. It also provides commercial, financial, and agricultural loans; equipment financing and leasing; real estate?1-4 family mortgage; real estate?commercial mortgage; real estate?construction loans for the construction of single family residential properties, multi-family properties, and commercial projects; installment loans to individuals; and business and personal, and interim construction loans, as well as automated teller machine (ATM), online and mobile banking, call center, and cash management services. The Insurance segment provides insurance agency services, including commercial and personal insurance products through third-party insurance carriers. The Wealth Management segment offers range of wealth management and fiduciary services, which include administration and management of trust accounts comprising personal and corporate benefit accounts, self-directed IRA's, and custodial accounts; administers qualified retirement plans, profit sharing and other employee benefit plans, personal trusts, and estates; and annuities, mutual funds, and other investment services through a third party broker-dealer. As of December 31, 2017, the company had 180 banking, insurance, and financial services offices located in Mississippi, Tennessee, Alabama, Florida, and Georgia; 136 full-service branches and 13 limited-service branches; and 136 ATMs at on-premise locations and 16 ATMs located at off-premise sites. Renasant Corporation was founded in 1904 and is based in Tupelo, Mississippi.

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