Guaranty Bancshares (NASDAQ: GNTY) and Lakeland Bancorp (NASDAQ:LBAI) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, earnings, risk and profitability.

Insider and Institutional Ownership

20.0% of Guaranty Bancshares shares are held by institutional investors. Comparatively, 53.0% of Lakeland Bancorp shares are held by institutional investors. 34.1% of Guaranty Bancshares shares are held by insiders. Comparatively, 6.2% of Lakeland Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Guaranty Bancshares and Lakeland Bancorp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Guaranty Bancshares $77.72 million 4.36 $12.12 million N/A N/A
Lakeland Bancorp $184.63 million 4.94 $41.51 million $1.08 17.82

Lakeland Bancorp has higher revenue and earnings than Guaranty Bancshares.

Risk & Volatility

Guaranty Bancshares has a beta of 0.02, suggesting that its stock price is 98% less volatile than the S&P 500. Comparatively, Lakeland Bancorp has a beta of 0.78, suggesting that its stock price is 22% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Guaranty Bancshares and Lakeland Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Guaranty Bancshares 0 2 0 0 2.00
Lakeland Bancorp 0 2 1 0 2.33

Guaranty Bancshares presently has a consensus price target of $34.00, suggesting a potential upside of 10.93%. Lakeland Bancorp has a consensus price target of $24.50, suggesting a potential upside of 27.27%. Given Lakeland Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe Lakeland Bancorp is more favorable than Guaranty Bancshares.

Profitability

This table compares Guaranty Bancshares and Lakeland Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Guaranty Bancshares 18.17% 9.60% 0.80%
Lakeland Bancorp 24.54% 9.12% 0.97%

Dividends

Guaranty Bancshares pays an annual dividend of $0.56 per share and has a dividend yield of 1.8%. Lakeland Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 2.1%. Lakeland Bancorp pays out 37.0% of its earnings in the form of a dividend.

Summary

Lakeland Bancorp beats Guaranty Bancshares on 11 of the 14 factors compared between the two stocks.

Guaranty Bancshares Company Profile

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.

Lakeland Bancorp Company Profile

Lakeland Bancorp, Inc. is the bank holding company for Lakeland Bank (Lakeland). Lakeland operates under a state bank charter and provides full banking services. Lakeland generates commercial, mortgage and consumer loans and receives deposits from customers located in Northern and Central New Jersey. Lakeland also provides non-deposit products, such as securities brokerage services, including mutual funds and variable annuities. Through Lakeland, the Company offers a range of lending, depository and related financial services to individuals and small to medium sized businesses located in northern and central New Jersey. Lakeland’s equipment financing division provides a solution to small and medium sized companies preferring to lease equipment over other financial alternatives. Lakeland’s asset based loan department provides commercial borrowers with another lending alternative. It also offers wire transfer, Internet banking, mobile banking and night depository services.

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