South Plains Financial (NASDAQ:SPFI – Get Free Report) and John Marshall Bancorp (NASDAQ:JMSB – Get Free Report) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.
Insider & Institutional Ownership
54.9% of South Plains Financial shares are owned by institutional investors. Comparatively, 39.1% of John Marshall Bancorp shares are owned by institutional investors. 24.3% of South Plains Financial shares are owned by company insiders. Comparatively, 12.6% of John Marshall Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of recent recommendations and price targets for South Plains Financial and John Marshall Bancorp, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| South Plains Financial | 0 | 1 | 6 | 0 | 2.86 |
| John Marshall Bancorp | 0 | 1 | 2 | 1 | 3.00 |
Risk & Volatility
South Plains Financial has a beta of 0.46, meaning that its stock price is 54% less volatile than the S&P 500. Comparatively, John Marshall Bancorp has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500.
Profitability
This table compares South Plains Financial and John Marshall Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| South Plains Financial | 20.79% | 12.36% | 1.37% |
| John Marshall Bancorp | 20.41% | 9.16% | 1.04% |
Valuation and Earnings
This table compares South Plains Financial and John Marshall Bancorp”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| South Plains Financial | $296.89 million | 2.80 | $58.47 million | $3.67 | 12.00 |
| John Marshall Bancorp | $115.33 million | 2.85 | $21.23 million | $1.73 | 13.45 |
South Plains Financial has higher revenue and earnings than John Marshall Bancorp. South Plains Financial is trading at a lower price-to-earnings ratio than John Marshall Bancorp, indicating that it is currently the more affordable of the two stocks.
Dividends
South Plains Financial pays an annual dividend of $0.72 per share and has a dividend yield of 1.6%. John Marshall Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 1.7%. South Plains Financial pays out 19.6% of its earnings in the form of a dividend. John Marshall Bancorp pays out 23.1% 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. South Plains Financial has increased its dividend for 5 consecutive years.
Summary
South Plains Financial beats John Marshall Bancorp on 12 of the 18 factors compared between the two stocks.
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.
About John Marshall Bancorp
John Marshall Bancorp, Inc. is the bank holding company for John Marshall Bank. The Bank is headquartered in Reston, Virginia with eight full-service branches located in Alexandria, Arlington, Loudoun, Prince William, Reston, and Tysons, Virginia, as well as Rockville, Maryland, and Washington, D.C. The Bank is dedicated to providing exceptional value, personalized service and convenience to local businesses and professionals in the Washington, D.C. Metropolitan area. The Bank offers a comprehensive line of sophisticated banking products and services that rival those of the largest banks along with experienced staff to help achieve customers’ financial goals. Dedicated relationship managers serve as direct points-of-contact, providing subject matter expertise in a variety of niche industries including charter and private schools, government contractors, health services, nonprofits and associations, professional services, property management companies and title companies
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