SEC BANCORP INC/SH SH (OTCMKTS:SCYT) and 1st Constitution Bancorp (NASDAQ:FCCY) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, valuation, institutional ownership, risk and dividends.
Volatility and Risk
SEC BANCORP INC/SH SH has a beta of 0.17, suggesting that its share price is 83% less volatile than the S&P 500. Comparatively, 1st Constitution Bancorp has a beta of 0.3, suggesting that its share price is 70% less volatile than the S&P 500.
SEC BANCORP INC/SH SH pays an annual dividend of $1.00 per share and has a dividend yield of 1.7%. 1st Constitution Bancorp pays an annual dividend of $0.30 per share and has a dividend yield of 1.4%. 1st Constitution Bancorp pays out 19.2% of its earnings in the form of a dividend. 1st Constitution Bancorp has increased its dividend for 3 consecutive years.
This table compares SEC BANCORP INC/SH SH and 1st Constitution Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|SEC BANCORP INC/SH SH||N/A||N/A||N/A|
|1st Constitution Bancorp||21.02%||10.61%||1.12%|
Earnings and Valuation
This table compares SEC BANCORP INC/SH SH and 1st Constitution Bancorp’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|SEC BANCORP INC/SH SH||N/A||N/A||N/A||N/A||N/A|
|1st Constitution Bancorp||$59.39 million||3.18||$12.05 million||$1.56||13.94|
1st Constitution Bancorp has higher revenue and earnings than SEC BANCORP INC/SH SH.
Insider & Institutional Ownership
4.2% of SEC BANCORP INC/SH SH shares are held by institutional investors. Comparatively, 38.8% of 1st Constitution Bancorp shares are held by institutional investors. 14.3% of 1st Constitution Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This is a summary of current recommendations and price targets for SEC BANCORP INC/SH SH and 1st Constitution Bancorp, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|SEC BANCORP INC/SH SH||0||0||0||0||N/A|
|1st Constitution Bancorp||0||1||1||0||2.50|
1st Constitution Bancorp has a consensus target price of $19.80, suggesting a potential downside of 8.95%. Given 1st Constitution Bancorp’s higher probable upside, analysts clearly believe 1st Constitution Bancorp is more favorable than SEC BANCORP INC/SH SH.
1st Constitution Bancorp beats SEC BANCORP INC/SH SH on 10 of the 12 factors compared between the two stocks.
SEC BANCORP INC/SH SH Company Profile
Security Bancorp, Inc. operates as the bank holding company for Security Federal Savings Bank that provides banking, financial, and mortgage services to individual and corporate customers primarily in Warren County, Tennessee. The company's deposit products include checking and savings accounts, and certificates of deposit. It also offers consumer loans; mortgage loans; and commercial loans, including installment loans and lines of credit, as well as provides trust services. In addition, the company provides wealth and financial management services that include mutual funds, stocks, and bonds; rollovers; personal and small business retirement plans; fixed, variable, and indexed annuities; life insurance; trust and estate services; and other plans, as well as online, mobile, and telephone banking services. It operates through three full-service bank locations and five ATM locations in Warren County. Security Bancorp, Inc. was founded in 1960 and is headquartered in McMinnville, Tennessee.
1st Constitution Bancorp Company Profile
1st Constitution Bancorp operates as the bank holding company for 1st Constitution Bank that provides commercial and retail banking services in the central, coastal, and northeastern areas of New Jersey. The company offers deposit products, including interest bearing demand deposits, such as interest-bearing checking accounts, money market accounts, and negotiable order of withdrawal accounts; and non-interest bearing demand, savings, and time deposits, as well as certificates of deposit. It also provides commercial loans, including term loans, lines of credit, and loans secured by equipment and receivables; secured and unsecured short-to-medium term commercial loans to businesses for working capital, business expansion, and the purchase of equipment and machinery; and construction loans to real estate developers for the acquisition, development, and construction of residential and commercial properties. In addition, the company offers residential first mortgage loans secured by owner-occupied property; construction loans; reverse mortgages; second mortgage home improvement loans; home equity lines of credit; and non-residential consumer loans for automobiles, recreation vehicles, and boats, as well as secured and unsecured personal loans, and deposit account secured loans. It serves corporations, individuals, partnerships, and other community organizations, as well as small businesses and not-for-profit organizations. As of December 31, 2018, the company operated through 19 additional branch offices in Asbury Park, Cranbury, Fair Haven, Fort Lee, Freehold, Hamilton Square, Hightstown, Hillsborough, Hopewell, Jamesburg, Lawrenceville, Little Silver, Neptune City, Perth Amboy, Plainsboro, Skillman, Princeton, Rumson, and Shrewsbury, New Jersey; and 2 residential mortgage loan production offices in Forked River and Jersey City, New Jersey. 1st Constitution Bancorp was founded in 1989 and is based in Cranbury, New Jersey.
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