Head-To-Head Analysis: Bogota Financial (NASDAQ:BSBK) and South Plains Financial (NASDAQ:SPFI)

Bogota Financial (NASDAQ:BSBK) and South Plains Financial (NASDAQ:SPFI) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their risk, profitability, earnings, dividends, institutional ownership, analyst recommendations and valuation.

Volatility and Risk

Bogota Financial has a beta of 0.14, meaning that its share price is 86% less volatile than the S&P 500. Comparatively, South Plains Financial has a beta of 0.46, meaning that its share price is 54% less volatile than the S&P 500.

Profitability

This table compares Bogota Financial and South Plains Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bogota Financial	6.00%	1.83%	0.29%
South Plains Financial	20.79%	12.36%	1.37%

Analyst Ratings

This is a breakdown of recent ratings for Bogota Financial and South Plains Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bogota Financial	0	1	0	0	2.00
South Plains Financial	0	1	6	0	2.86

South Plains Financial has a consensus price target of $49.60, suggesting a potential upside of 13.48%. Given South Plains Financial’s stronger consensus rating and higher possible upside, analysts plainly believe South Plains Financial is more favorable than Bogota Financial.

Insider and Institutional Ownership

11.6% of Bogota Financial shares are owned by institutional investors. Comparatively, 54.9% of South Plains Financial shares are owned by institutional investors. 3.7% of Bogota Financial shares are owned by company insiders. Comparatively, 24.3% of South Plains Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Bogota Financial and South Plains Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bogota Financial	$44.78 million	2.62	$2.09 million	$0.21	43.76
South Plains Financial	$296.89 million	2.77	$58.47 million	$3.67	11.91

South Plains Financial has higher revenue and earnings than Bogota Financial. South Plains Financial is trading at a lower price-to-earnings ratio than Bogota Financial, indicating that it is currently the more affordable of the two stocks.

Summary

South Plains Financial beats Bogota Financial on 13 of the 14 factors compared between the two stocks.

About Bogota Financial

Bogota Financial Corp. operates as the bank holding company for Bogota Savings Bank that provides banking products and services in the United States. It offers deposit accounts, including demand accounts, savings accounts, money market accounts, and certificate of deposit accounts. The company also provides one-to four-family residential real estate loans, and commercial real estate and multi-family loans; consumer loans, such as home equity loans and lines of credit; commercial and industrial loans; and construction loans; and buys, sells, and holds investment securities. It operates through various offices located in Bogota, Hasbrouck Heights, Newark, Oak Ridge, Parsippany, and Teaneck, as well as through a loan production office in Spring Lake, New Jersey. The company was founded in 1893 and is based in Teaneck, New Jersey. Bogota Financial Corp. operates as a subsidiary of Bogota Financial, MHC.

About South Plains Financial

South Plains Financial, Inc. operates as a bank holding company for City Bank that provides commercial and consumer financial services to small and medium-sized businesses and individuals. The company operates through two segments, Banking and Insurance. It offers deposit products, including demand deposit accounts, interest-bearing products, savings accounts, and certificate of deposits. The company also provides commercial real estate loans; general and specialized commercial loans, including agricultural production and real estate, energy, finance, investment, and insurance loans, as well as loans to goods, services, restaurant and retail, construction, and other industries; residential construction loans; and 1-4 family residential loans, auto loans, and other loans for recreational vehicles or other purposes. In addition, it offers crop insurance products; trust products and services; investment services; mortgage banking services; online and mobile banking services; and debit and credit cards. The company was founded in 1941 and is headquartered in Lubbock, Texas.