VersaBank (NASDAQ:VBNK – Get Rating) and Avidbank (OTCMKTS:AVBH – Get Rating) 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, risk, earnings, valuation, analyst recommendations, dividends and institutional ownership.
Risk & Volatility
VersaBank has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500. Comparatively, Avidbank has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500.
Get VersaBank alerts:Insider and Institutional Ownership
30.2% of VersaBank shares are held by institutional investors. Comparatively, 10.3% of Avidbank shares are held by institutional investors. 5.3% of VersaBank shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of current recommendations and price targets for VersaBank and Avidbank, as provided by MarketBeat.com.Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
VersaBank | 0 | 0 | 2 | 0 | 3.00 |
Avidbank | 0 | 0 | 1 | 0 | 3.00 |
VersaBank currently has a consensus target price of $9.00, suggesting a potential upside of 15.98%. Avidbank has a consensus target price of $24.00, suggesting a potential upside of 17.65%. Given Avidbank's higher possible upside, analysts plainly believe Avidbank is more favorable than VersaBank.
Profitability
This table compares VersaBank and Avidbank's net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
VersaBank | 17.14% | 6.54% | 0.79% |
Avidbank | 24.75% | N/A | N/A |
Valuation and Earnings
This table compares VersaBank and Avidbank's gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
VersaBank | $102.93 million | 2.05 | $17.60 million | $0.61 | 12.72 |
Avidbank | $60.20 million | 2.46 | $12.26 million | $2.84 | 7.18 |
VersaBank has higher revenue and earnings than Avidbank. Avidbank is trading at a lower price-to-earnings ratio than VersaBank, indicating that it is currently the more affordable of the two stocks.
Summary
VersaBank beats Avidbank on 8 of the 13 factors compared between the two stocks.
About VersaBank
(Get Rating)
VersaBank engages in the provision of financial services. It operates through Digital Banking and DRTC. The Digital Banking segment offers business to business model using its financial technoolgy to address issues in the US banking market. The DRTC segment refers to developed IT security software and capabilities. The company was founded by David Roy Taylor on January 18, 1993 and is headquartered in London, Canada.
About Avidbank
(Get Rating)
Avidbank Holdings, Inc. engages in the provision of financial products and services. Through its subsidiary, it offers personal banking, corporate banking, corporate finance, and real estate lending services. The company was founded on December 17, 2007 and is headquartered in San Jose, CA.
Receive News & Ratings for VersaBank Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for VersaBank and related companies with MarketBeat.com's FREE daily email newsletter.