SmartFinancial (NASDAQ:SMBK) and Guaranty Bancshares (NASDAQ:GNTY) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.
Earnings and Valuation
This table compares SmartFinancial and Guaranty Bancshares’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|SmartFinancial||$57.00 million||5.24||$5.01 million||$1.11||21.20|
|Guaranty Bancshares||$86.06 million||4.07||$14.43 million||$1.56||18.78|
Guaranty Bancshares has higher revenue and earnings than SmartFinancial. Guaranty Bancshares is trading at a lower price-to-earnings ratio than SmartFinancial, indicating that it is currently the more affordable of the two stocks.
This table compares SmartFinancial and Guaranty Bancshares’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
SmartFinancial has a beta of 0.1, indicating that its share price is 90% less volatile than the S&P 500. Comparatively, Guaranty Bancshares has a beta of -0.04, indicating that its share price is 104% less volatile than the S&P 500.
Guaranty Bancshares pays an annual dividend of $0.60 per share and has a dividend yield of 2.0%. SmartFinancial does not pay a dividend. Guaranty Bancshares pays out 38.5% of its earnings in the form of a dividend.
This is a summary of current ratings and recommmendations for SmartFinancial and Guaranty Bancshares, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
SmartFinancial currently has a consensus price target of $27.00, indicating a potential upside of 14.75%. Guaranty Bancshares has a consensus price target of $34.50, indicating a potential upside of 17.75%. Given Guaranty Bancshares’ higher possible upside, analysts plainly believe Guaranty Bancshares is more favorable than SmartFinancial.
Institutional and Insider Ownership
36.6% of SmartFinancial shares are owned by institutional investors. Comparatively, 21.0% of Guaranty Bancshares shares are owned by institutional investors. 12.0% of SmartFinancial shares are owned by insiders. Comparatively, 22.6% of Guaranty Bancshares shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Guaranty Bancshares beats SmartFinancial on 9 of the 16 factors compared between the two stocks.
SmartFinancial, Inc. operates as the bank holding company for the SmartBank that provides various financial services to individuals and corporate customers in the United States. The company offers various deposit products, including interest bearing and non-interest bearing checking accounts, savings accounts, money market accounts, individual retirement accounts, and certificates of deposit. It also provides commercial real estate loans, consumer real estate loans, construction and land development loans, commercial and industrial loans, including commercial, financial, and agricultural loans, and consumer and other loans, such as direct consumer installment loans, overdrafts and other revolving credit loans, and educational loans. In addition, the company offers Internet and mobile banking services. As of December 31, 2017, it operated through 22 full-service branches located in Tennessee, Alabama, and Florida; and 1 loan production office, 2 mortgage loan production offices, and 2 service centers. SmartFinancial, Inc. is headquartered in Knoxville, Tennessee.
About Guaranty Bancshares
Guaranty Bancshares, Inc. operates as the bank holding company for Guaranty Bank & Trust, N.A. that provides a range of commercial and consumer banking products and services for small- and medium-sized businesses, professionals, and individuals. It offers various deposit products, such as checking and savings, money market, and business accounts, as well as certificates of deposit; and loan products comprising commercial and industrial, construction and development, commercial real estate, farmland, consumer, one-to-four family residential, multi-family residential, and agricultural loans. The company also provides trust, wealth management, and retirement plan services; and remote deposit capture, online and mobile banking, bank-by-mail, direct deposit, cash and treasury management, ATM, and night depository services, as well as debit cards, e-statements, cashier's checks, and letters of credit. As of March 15, 2018, it had 28 banking locations across 20 Texas communities located within the East Texas, Dallas/Fort Worth metroplex, and Central Texas regions. The company was founded in 1913 and is headquartered in Mount Pleasant, Texas.
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