Sussex Bancorp (NASDAQ: SBBX) and HomeStreet (NASDAQ:HMST) are both small-cap financials companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, risk, profitability and earnings.

Dividends

Sussex Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 0.9%. HomeStreet does not pay a dividend. Sussex Bancorp pays out 18.2% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares Sussex Bancorp and HomeStreet’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sussex Bancorp $36.99 million 4.40 $5.52 million $1.32 20.42
HomeStreet $568.69 million 1.38 $58.15 million $1.34 21.72

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

Volatility and Risk

Sussex Bancorp has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500. Comparatively, HomeStreet has a beta of 0.23, indicating that its stock price is 77% less volatile than the S&P 500.

Institutional & Insider Ownership

54.0% of Sussex Bancorp shares are held by institutional investors. Comparatively, 85.3% of HomeStreet shares are held by institutional investors. 17.6% of Sussex Bancorp shares are held by insiders. Comparatively, 1.6% of HomeStreet shares are held by 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.

Analyst Ratings

This is a summary of current ratings for Sussex Bancorp and HomeStreet, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sussex Bancorp 0 0 1 0 3.00
HomeStreet 0 3 1 0 2.25

Sussex Bancorp currently has a consensus price target of $28.50, indicating a potential upside of 5.75%. HomeStreet has a consensus price target of $29.08, indicating a potential downside of 0.06%. Given Sussex Bancorp’s stronger consensus rating and higher possible upside, equities analysts plainly believe Sussex Bancorp is more favorable than HomeStreet.

Profitability

This table compares Sussex Bancorp and HomeStreet’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sussex Bancorp 15.97% 9.19% 0.79%
HomeStreet 6.68% 6.08% 0.61%

Summary

Sussex Bancorp beats HomeStreet on 9 of the 15 factors compared between the two stocks.

About Sussex Bancorp

Sussex Bancorp is a bank holding company for Sussex Bank (the Bank). The Company’s primary business is the ownership and supervision of the Bank. The Company has two business segments: banking and financial services, and insurance services. The Company, through the Bank, conducts a traditional commercial banking business, and offer services, including personal and business checking accounts and time deposits, money market accounts and savings accounts. The Company, through the Bank’s subsidiary, Tri-State, operates a full service general insurance agency, offering both commercial and personal lines of insurance. The Company’s service area primarily consists of Sussex, Morris and Bergen Counties in New Jersey, and Orange and Queens Counties, New York. The Company’s loan portfolio includes commercial and industrial consumer loans, construction loans, commercial real estate loans, residential real estate loans, and consumer and other loans.

About HomeStreet

HomeStreet, Inc. is a financial services company serving customers primarily in the western United States, including Hawaii. The Company is principally engaged in real estate lending, including mortgage banking activities, and commercial and consumer banking. The Company’s operating segments include Commercial and Consumer Banking, and Mortgage Banking. It provides financial products and services to its commercial and consumer customers through retail deposit branches and commercial lending centers, automated teller machines (ATMs), and online, mobile and telephone banking. The Company originates single family residential mortgage loans for sale in the secondary markets. Its mortgage loans are sold to or securitized by Fannie Mae, The Federal Home Loan Mortgage Corporation (Freddie Mac) or The Government National Mortgage Association (Ginnie Mae), while it retains the right to service these loans. It also provides insurance products and services for consumers and businesses.

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