QCR (NASDAQ:QCRH) and Reliant Bancorp (NASDAQ:RBNC) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, valuation, risk and analyst recommendations.
QCR pays an annual dividend of $0.24 per share and has a dividend yield of 0.7%. Reliant Bancorp pays an annual dividend of $0.36 per share and has a dividend yield of 1.7%. QCR pays out 7.8% of its earnings in the form of a dividend. Reliant Bancorp pays out 26.3% 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. QCR has increased its dividend for 3 consecutive years.
Insider & Institutional Ownership
58.7% of QCR shares are held by institutional investors. Comparatively, 29.3% of Reliant Bancorp shares are held by institutional investors. 8.8% of QCR shares are held by company insiders. Comparatively, 13.1% of Reliant Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Valuation & Earnings
This table compares QCR and Reliant Bancorp’s gross revenue, earnings per share (EPS) and valuation.
QCR has higher revenue and earnings than Reliant Bancorp. QCR is trading at a lower price-to-earnings ratio than Reliant Bancorp, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings and price targets for QCR and Reliant Bancorp, as reported by MarketBeat.
QCR currently has a consensus target price of $44.00, indicating a potential upside of 28.96%. Reliant Bancorp has a consensus target price of $27.50, indicating a potential upside of 27.85%. Given QCR’s stronger consensus rating and higher probable upside, equities research analysts clearly believe QCR is more favorable than Reliant Bancorp.
This table compares QCR and Reliant Bancorp’s net margins, return on equity and return on assets.
Volatility & Risk
QCR has a beta of 0.7, suggesting that its stock price is 30% less volatile than the S&P 500. Comparatively, Reliant Bancorp has a beta of 0.25, suggesting that its stock price is 75% less volatile than the S&P 500.
QCR beats Reliant Bancorp on 13 of the 17 factors compared between 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.
Reliant Bancorp Company Profile
Reliant Bancorp, Inc. operates as the holding company for Reliant Bank that provides a range of commercial banking services for businesses and individuals in the Middle Tennessee region and the Nashville-Davidson-Murfreesboro-Franklin Metropolitan Statistical Area. Its deposit products include checking, savings, and money market deposit accounts; time deposits; certificates of deposit; and non-interest-bearing and interest bearing demand deposits. The company's loan portfolio comprises residential mortgage loans and mortgage refinancing; commercial, industrial, and agricultural loans; multi-family and commercial real estate loans; construction, land development, and farmland loans; 1-4 family residential real estate loans; home equity loans; and consumer loans, such as loans for household, family, and other personal expenditures. It also provides safe deposit box, debit card, direct deposit, and official bank check services. The company operates through seven branches in Davidson, Robertson, Sumner, and Williamson counties in Tennessee. The company was formerly known as Commerce Union Bancshares, Inc. and changed its name to Reliant Bancorp, Inc. in January 2018. Reliant Bancorp, Inc. was founded in 2006 and is based in Brentwood, Tennessee.