OceanFirst Financial (NASDAQ: OCFC) and Guaranty Bancshares (NASDAQ:GNTY) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.
Earnings and Valuation
This table compares OceanFirst Financial and Guaranty Bancshares’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|OceanFirst Financial||$153.84 million||6.07||$23.04 million||$1.20||23.88|
|Guaranty Bancshares||$77.72 million||4.34||$12.12 million||N/A||N/A|
Insider and Institutional Ownership
70.9% of OceanFirst Financial shares are owned by institutional investors. Comparatively, 20.0% of Guaranty Bancshares shares are owned by institutional investors. 7.0% of OceanFirst Financial shares are owned by company insiders. Comparatively, 34.1% of Guaranty Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Risk & Volatility
OceanFirst Financial has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500. Comparatively, Guaranty Bancshares has a beta of 0.02, meaning that its stock price is 98% less volatile than the S&P 500.
This table compares OceanFirst Financial and Guaranty Bancshares’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
OceanFirst Financial pays an annual dividend of $0.60 per share and has a dividend yield of 2.1%. Guaranty Bancshares pays an annual dividend of $0.52 per share and has a dividend yield of 1.7%. OceanFirst Financial pays out 50.0% of its earnings in the form of a dividend.
This is a breakdown of recent recommendations and price targets for OceanFirst Financial and Guaranty Bancshares, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
OceanFirst Financial presently has a consensus price target of $31.00, suggesting a potential upside of 8.16%. Guaranty Bancshares has a consensus price target of $34.00, suggesting a potential upside of 11.51%. Given Guaranty Bancshares’ higher probable upside, analysts plainly believe Guaranty Bancshares is more favorable than OceanFirst Financial.
OceanFirst Financial beats Guaranty Bancshares on 10 of the 14 factors compared between the two stocks.
About OceanFirst Financial
OceanFirst Financial Corp. is a holding company for OceanFirst Bank (the Bank). The Company is a savings and loan holding company. The Bank’s principal business is attracting retail and business deposits in the communities surrounding its branch offices and investing those deposits primarily in loans, consisting of single-family, owner-occupied residential mortgage loans, and commercial real estate and other commercial loans. The Bank also invests in other types of loans, including residential construction and consumer loans. In addition, the Bank invests in mortgage-backed securities (MBS), securities issued by the United States Government and agencies thereof, corporate securities and other investments. The Bank originates home equity loans typically as fixed-rate loans with terms ranging from 5 to 20 years. The Bank also offers variable-rate home equity lines of credit.
About Guaranty Bancshares
Guaranty Bancshares, Inc. is the holding company for Guaranty Bank & Trust (Guaranty). Guaranty offers various solutions, such as personal banking, business banking, mortgage and wealth management. Its personal banking solutions include checking accounts, which include compare accounts, green checking, student checking, choice checking, guaranty interest checking, order checks and debit cards; savings accounts, which include regular savings, premier money market, certificate of deposit, individual retirement account (IRA) options and health savings account, and online banking, which includes money desktop and e-statements. Guaranty offers various loans, including line of credit, small business administration loans and real estate loans. Guaranty also offers mobile banking solutions, mortgage warehouse lending solutions and treasury management solutions. It has approximately 30 bank locations in over 20 Texas communities.
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