Green Bancorp (NASDAQ: GNBC) and Anchor Bancorp (NASDAQ:ANCB) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, profitability, analyst recommendations and earnings.

Profitability

This table compares Green Bancorp and Anchor Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Green Bancorp 7.69% 3.14% 0.34%
Anchor Bancorp 9.58% 3.63% 0.52%

Institutional and Insider Ownership

60.7% of Green Bancorp shares are held by institutional investors. Comparatively, 42.6% of Anchor Bancorp shares are held by institutional investors. 16.7% of Green Bancorp shares are held by insiders. Comparatively, 6.5% of Anchor Bancorp shares are held by 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 and Volatility

Green Bancorp has a beta of 2.2, meaning that its share price is 120% more volatile than the S&P 500. Comparatively, Anchor Bancorp has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500.

Earnings and Valuation

This table compares Green Bancorp and Anchor Bancorp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Green Bancorp $105.91 million 8.27 $13.33 million $0.36 65.70
Anchor Bancorp $20.91 million 2.90 $2.38 million $0.97 25.52

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Green Bancorp and Anchor Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Green Bancorp 0 0 2 0 3.00
Anchor Bancorp 0 0 0 0 N/A

Green Bancorp currently has a consensus price target of $18.00, suggesting a potential downside of 23.89%. Given Green Bancorp’s higher probable upside, research analysts clearly believe Green Bancorp is more favorable than Anchor Bancorp.

Summary

Green Bancorp beats Anchor Bancorp on 9 of the 13 factors compared between the two stocks.

About Green Bancorp

Green Bancorp, Inc. is a bank holding company. As of December 31, 2016, the Company’s subsidiary, Green Bank, N.A., a nationally chartered commercial bank, provided commercial and private banking services primarily to Texas based customers through 22 full service branches in the Houston and Dallas metropolitan statistical areas (MSAs) and other markets. The Company provides banking services to a range of customers. It offers a suite of online banking solutions, including access to account balances, online transfers, online bill payment and electronic delivery of customer statements, as well as extended drive through hours, automated teller machines (ATMs), Bank at Work and banking by telephone, mail and personal appointment. The Company also offers debit cards, night depository, direct deposit, cashier’s checks and letters of credit, as well as treasury management services, wire transfer services and automated clearing house (ACH) services.

About Anchor Bancorp

Anchor Bancorp is the bank holding company of Anchor Bank (the Bank). The Bank is a community-based savings bank. As of June 30, 2016, the Bank primarily served Western Washington through its 10 full-service banking offices (including a Wal-Mart in-store location) located within Grays Harbor, Thurston, Lewis, Pierce and Mason counties, and a loan production office located in King County, Washington. It is in the business of attracting deposits from the public and utilizing those deposits to originate loans. The Bank offers a range of loan products. The Bank’s operations include commercial banking services, such as lending activities, deposit products and other cash management services. The Bank offers commercial real estate loans and multi-family loans primarily in Western Washington. The Bank offers various deposit instruments, including checking accounts, money market deposit accounts, savings accounts and certificates of deposit with a range of rates.

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