Howard Bancorp (NASDAQ:HBMD) and Security Federal Co. (SC) (OTCMKTS:SFDL) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, dividends, institutional ownership, profitability and analyst recommendations.
Valuation & Earnings
This table compares Howard Bancorp and Security Federal Co. (SC)’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Howard Bancorp||$98.25 million||2.77||-$3.83 million||$0.65||21.97|
|Security Federal Co. (SC)||$40.74 million||2.28||$7.21 million||N/A||N/A|
This is a summary of recent ratings and target prices for Howard Bancorp and Security Federal Co. (SC), as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Security Federal Co. (SC)||0||0||0||0||N/A|
Howard Bancorp presently has a consensus price target of $17.00, indicating a potential upside of 19.05%. Given Howard Bancorp’s higher probable upside, equities analysts plainly believe Howard Bancorp is more favorable than Security Federal Co. (SC).
Institutional and Insider Ownership
53.5% of Howard Bancorp shares are owned by institutional investors. 23.2% of Howard Bancorp shares are owned by company insiders. Comparatively, 37.7% of Security Federal Co. (SC) shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This table compares Howard Bancorp and Security Federal Co. (SC)’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Security Federal Co. (SC)||17.69%||9.28%||0.81%|
Volatility and Risk
Howard Bancorp has a beta of 0.13, indicating that its share price is 87% less volatile than the S&P 500. Comparatively, Security Federal Co. (SC) has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500.
Security Federal Co. (SC) pays an annual dividend of $0.36 per share and has a dividend yield of 1.1%. Howard Bancorp does not pay a dividend.
Security Federal Co. (SC) beats Howard Bancorp on 7 of the 12 factors compared between the two stocks.
Howard Bancorp Company Profile
Howard Bancorp, Inc. operates as the bank holding company for Howard Bank that provides commercial banking, mortgage banking, and consumer finance products and services to businesses, business owners, professionals, and other consumers. The company offers various consumer and business deposit products, including demand, money market, savings, individual retirement, and commercial and retail checking accounts, as well as certificates of deposit. It also provides commercial loans, such as lines of credit, revolving credit facilities, accounts receivable and inventory financing, term loans, equipment loans, small business administration loans, stand-by letters of credit, and unsecured loans; commercial mortgage loans for owner occupied and investment properties; construction loans; residential mortgage loans; and secured and unsecured consumer loans. In addition, the company offers wire transfer services; automated teller machines and check cards; and safe deposit boxes, as well as credit cards through a third party processor. Further, it provides Internet banking, merchant card, overnight sweep, and remote deposit capture services; and Mobiliti mobile banking, PopMoney, and eStatement products. As of December 31, 2018, the company operated through a network of 21 full service branches, as well as 11 mortgage and commercial lending offices located in Maryland. Howard Bancorp, Inc. was founded in 2004 and is headquartered in Baltimore, Maryland.
Security Federal Co. (SC) Company Profile
Security Federal Corporation operates as the holding company for Security Federal Bank, a state-chartered commercial bank that provides various banking products and services. It accepts various deposit products, such as savings accounts, checking accounts, various money market accounts, fixed interest rate certificates, negotiated rate jumbo certificates of deposit, and individual retirement accounts. The company also originates commercial real estate loans, commercial business loans, and consumer loans, as well as mortgage loans to buy or refinance one-to-four family residential real estate; and construction loans on single-family residences, multi-family dwellings and projects, and commercial real estate. In addition, it provides loans for the acquisition, development, and construction of residential subdivisions and commercial projects. Further, the company offers trust, financial planning, and financial management services; and operates an insurance agency that offers auto, business, life, health, and home insurance products, as well as provides insurance premium financing services. It operates through a network of 15 full service branch offices in Aiken, Ballentine, Clearwater, Columbia, Graniteville, Langley, Lexington, North Augusta, Wagener, and West Columbia, South Carolina, as well as in Evans, Georgia. Security Federal Corporation was founded in 1922 and is headquartered in Aiken, South Carolina.
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