Critical Review: Stock Yards Bancorp (SYBT) and American River Bankshares (AMRB)

Stock Yards Bancorp (NASDAQ: SYBT) and American River Bankshares (NASDAQ:AMRB) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.

Risk and Volatility

Stock Yards Bancorp has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500. Comparatively, American River Bankshares has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500.

Valuation & Earnings

This table compares Stock Yards Bancorp and American River Bankshares’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Stock Yards Bancorp $155.97 million 5.70 $38.04 million $1.91 20.47
American River Bankshares $22.01 million 4.27 $3.19 million $0.75 21.29

Stock Yards Bancorp has higher revenue and earnings than American River Bankshares. Stock Yards Bancorp is trading at a lower price-to-earnings ratio than American River Bankshares, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Stock Yards Bancorp and American River Bankshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stock Yards Bancorp 25.54% 13.98% 1.45%
American River Bankshares 15.32% 6.34% 0.75%

Dividends

Stock Yards Bancorp pays an annual dividend of $0.92 per share and has a dividend yield of 2.4%. American River Bankshares pays an annual dividend of $0.20 per share and has a dividend yield of 1.3%. Stock Yards Bancorp pays out 48.2% of its earnings in the form of a dividend. American River Bankshares pays out 26.7% 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.

Insider & Institutional Ownership

47.5% of Stock Yards Bancorp shares are held by institutional investors. Comparatively, 50.1% of American River Bankshares shares are held by institutional investors. 6.2% of Stock Yards Bancorp shares are held by company insiders. Comparatively, 10.1% of American River Bankshares shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings for Stock Yards Bancorp and American River Bankshares, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stock Yards Bancorp 0 1 1 0 2.50
American River Bankshares 2 1 1 0 1.75

Stock Yards Bancorp currently has a consensus target price of $40.00, indicating a potential upside of 2.30%. American River Bankshares has a consensus target price of $16.00, indicating a potential upside of 0.19%. Given Stock Yards Bancorp’s stronger consensus rating and higher probable upside, research analysts plainly believe Stock Yards Bancorp is more favorable than American River Bankshares.

Summary

Stock Yards Bancorp beats American River Bankshares on 11 of the 15 factors compared between the two stocks.

Stock Yards Bancorp Company Profile

Stock Yards Bancorp, Inc. operates as the holding company for Stock Yards Bank & Trust Company that provides commercial and personal banking services in Louisville, Indianapolis, and Cincinnati. Its deposit products include demand deposits, savings deposits, certificates of deposit, money market deposits, and time deposits. The company's loan portfolio comprises commercial and industrial, construction and development, undeveloped land, real estate mortgage, and consumer loans; and originates and sells single-family residential mortgages. In addition, it offers securities brokerage services through an arrangement with a third party broker-dealer; and investment management, trust, employee benefit plan, estate administration, and financial planning services. As of December 31, 2017, the company had 37 banking locations, including 28 full service banking locations in the Louisville metropolitan statistical area (MSA), 4 full service banking locations in the Indianapolis MSA, and 5 full service banking locations in the Cincinnati MSA. Stock Yards Bancorp, Inc. was founded in 1904 and is headquartered in Louisville, Kentucky.

American River Bankshares Company Profile

American River Bankshares operates as the holding company for American River Bank that provides commercial banking products and services to small and middle-market businesses, and individuals in California, the United States. The company accepts checking and savings deposits; and offers money market deposit accounts and certificates of deposit. It also provides commercial, commercial real estate, multi-family real estate, commercial and residential real estate construction, residential real estate, agriculture, consumer, and other installment and term loans, as well as other customary banking services. In addition, the company conducts lease financing for various types of business equipment ranging from computer software to heavy earth-moving equipment. It operates four full-service banking offices in Sacramento County, one full-service banking office in Placer County, two full-service banking offices in Sonoma County, and three full-service banking offices in Amador County. The company was formerly known as American River Holdings and changed its name to American River Bankshares in 2004. American River Bankshares was founded in 1983 and is headquartered in Rancho Cordova, California.

Receive News & Ratings for Stock Yards Bancorp Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Stock Yards Bancorp and related companies with MarketBeat.com's FREE daily email newsletter.


Leave a Reply