Green Bancorp (NASDAQ: GNBC) and Yadkin Financial (NYSE:YDKN) are both small-cap financials companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, valuation, institutional ownership, risk, earnings, dividends and profitability.

Dividends

Yadkin Financial pays an annual dividend of $0.40 per share and has a dividend yield of 1.2%. Green Bancorp does not pay a dividend. Yadkin Financial pays out 35.7% of its earnings in the form of a dividend. Yadkin Financial has increased its dividend for 2 consecutive years.

Insider and Institutional Ownership

63.3% of Green Bancorp shares are owned by institutional investors. Comparatively, 69.7% of Yadkin Financial shares are owned by institutional investors. 16.2% of Green Bancorp shares are owned by company insiders. Comparatively, 3.0% of Yadkin Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Green Bancorp has a beta of 2.11, suggesting that its stock price is 111% more volatile than the S&P 500. Comparatively, Yadkin Financial has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Green Bancorp and Yadkin Financial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Green Bancorp 0 2 1 0 2.33
Yadkin Financial 0 0 0 0 N/A

Green Bancorp presently has a consensus price target of $24.33, indicating a potential upside of 16.99%. Given Green Bancorp’s higher possible upside, equities research analysts plainly believe Green Bancorp is more favorable than Yadkin Financial.

Profitability

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

Net Margins Return on Equity Return on Assets
Green Bancorp 18.70% 7.70% 0.83%
Yadkin Financial 18.40% 5.41% 0.75%

Earnings & Valuation

This table compares Green Bancorp and Yadkin Financial’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Green Bancorp $161.67 million 4.80 -$970,000.00 $0.91 22.86
Yadkin Financial N/A N/A N/A $1.12 30.79

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

Summary

Green Bancorp beats Yadkin Financial on 9 of the 14 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 Yadkin Financial

Yadkin Financial Corporation is a bank holding company. The Company conducts its business operations through its subsidiary, Yadkin Bank, which is a chartered community bank that provides services in approximately 110 branches across North Carolina and South Carolina. Yadkin Bank provides banking, mortgage, investment and insurance services to businesses and consumers across the Carolinas. It operates through a segment, which is providing general commercial banking and financial services to individuals and businesses located in North Carolina and South Carolina, and to customers in various states through its Small Business Administration (SBA) lending program. It offers various loans, such as commercial and industrial (C&I) loans and government-guaranteed loans. The Company’s investment securities portfolio includes the United States Government-sponsored enterprise (GSE) obligations and securities guaranteed by the United States SBA. The Company’s primary source of funds is deposits.

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