Financial Comparison: Synovus Financial (NYSE:SNV) vs. Benchmark Bankshares (OTCMKTS:BMBN)

Synovus Financial (NYSE:SNV) and Benchmark Bankshares (OTCMKTS:BMBN) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, earnings, dividends and risk.

Earnings & Valuation

This table compares Synovus Financial and Benchmark Bankshares”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Synovus Financial	$3.43 billion	1.96	$482.46 million	$5.21	9.30
Benchmark Bankshares	$73.53 million	1.98	$15.85 million	N/A	N/A

Synovus Financial has higher revenue and earnings than Benchmark Bankshares.

Dividends

Synovus Financial pays an annual dividend of $1.56 per share and has a dividend yield of 3.2%. Benchmark Bankshares pays an annual dividend of $0.88 per share and has a dividend yield of 2.7%. Synovus Financial pays out 29.9% of its earnings in the form of a dividend. Synovus Financial has increased its dividend for 1 consecutive years. Synovus Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

Synovus Financial has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500. Comparatively, Benchmark Bankshares has a beta of 0.13, meaning that its share price is 87% less volatile than the S&P 500.

Institutional & Insider Ownership

83.9% of Synovus Financial shares are held by institutional investors. Comparatively, 3.2% of Benchmark Bankshares shares are held by institutional investors. 1.0% of Synovus Financial shares are held by company insiders. Comparatively, 14.0% of Benchmark Bankshares shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Synovus Financial and Benchmark Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Synovus Financial	21.52%	16.20%	1.31%
Benchmark Bankshares	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current ratings and price targets for Synovus Financial and Benchmark Bankshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Synovus Financial	0	9	10	0	2.53
Benchmark Bankshares	0	0	0	0	0.00

Synovus Financial currently has a consensus price target of $58.50, indicating a potential upside of 20.69%. Given Synovus Financial’s stronger consensus rating and higher probable upside, research analysts plainly believe Synovus Financial is more favorable than Benchmark Bankshares.

Summary

Synovus Financial beats Benchmark Bankshares on 12 of the 15 factors compared between the two stocks.

About Synovus Financial

Synovus Financial Corp. operates as the bank holding company for Synovus Bank that provides commercial and consumer banking products and services. It operates through four segments: Community Banking, Wholesale Banking, Consumer Banking, and Financial Management Services. The company's commercial banking services include treasury and asset management, capital market, and institutional trust services, as well as commercial, financial, and real estate lending services. Its consumer banking services comprise accepting customary types of demand and savings deposits accounts; mortgage, installment, and other consumer loans; investment and brokerage services; safe deposit services; automated banking services; automated fund transfers; internet-based banking services; and bank credit and debit card services, including Visa and MasterCard services. The company also offers various other financial services, including portfolio management for fixed-income securities, investment banking, execution of securities transactions as a broker/dealer, trust management, and financial planning services, as well as provides individual investment advice on equity and other securities. The company was founded in 1888 and is headquartered in Columbus, Georgia.

About Benchmark Bankshares

Benchmark Bankshares, Inc. operates as the holding company for Benchmark Community Bank that provides various banking products and services in the United States. The company accepts various deposits, such as checking, saving, commercial services, and youth accounts. Its loan products include personal, mortgage, other real estate, business, auto, and student loans. The company also offers credit and debit cards; wealth management services comprising financial solutions, financial and retirement planning, and portfolio management, as well as estate, charitable giving, and trust services; and reorder checks, safe deposit boxes, wire transfers, bill pay, and internet and mobile banking services. The company was founded in 1971 and is based in Kenbridge, Virginia.