Head-To-Head Analysis: Jernigan Capital (NASDAQ:JCAP) and Happen Bank (NASDAQ:HAPN)

Happen Bank (NASDAQ:HAPN) and Jernigan Capital (NASDAQ:JCAP) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, dividends, profitability, risk and institutional ownership.

Volatility and Risk

Happen Bank has a beta of 1.61, indicating that its share price is 61% more volatile than the S&P 500. Comparatively, Jernigan Capital has a beta of -0.05, indicating that its share price is 105% less volatile than the S&P 500.

Earnings and Valuation

This table compares Happen Bank and Jernigan Capital”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Happen Bank	$998.85 million	1.79	$135.68 million	$1.79	8.68
Jernigan Capital	$613.29 million	1.86	$187.96 million	$2.45	8.09

Jernigan Capital has lower revenue, but higher earnings than Happen Bank. Jernigan Capital is trading at a lower price-to-earnings ratio than Happen Bank, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Happen Bank and Jernigan Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Happen Bank	20.16%	13.62%	1.71%
Jernigan Capital	23.50%	35.87%	8.16%

Insider & Institutional Ownership

74.1% of Happen Bank shares are owned by institutional investors. 3.3% of Happen Bank shares are owned by insiders. Comparatively, 8.3% of Jernigan Capital shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Happen Bank and Jernigan Capital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Happen Bank	0	1	3	0	2.75
Jernigan Capital	0	2	4	1	2.86

Happen Bank presently has a consensus target price of $23.33, suggesting a potential upside of 50.10%. Jernigan Capital has a consensus target price of $27.50, suggesting a potential upside of 38.75%. Given Happen Bank’s higher possible upside, research analysts clearly believe Happen Bank is more favorable than Jernigan Capital.

Summary

Jernigan Capital beats Happen Bank on 10 of the 15 factors compared between the two stocks.

About Happen Bank

Happen Bank, originally founded as LendingClub in 2006, is a digital bank primarily built for high-FICO, high-income borrowers that are actively managing their financial lives. The company offers products to make financial progress both fast and easy. Additionally, the company provides advanced credit underwriting, a proprietary technology platform, and a marketplace bank model intended to drive value for members, loan investors, and shareholders. Happen Bank is headquartered in San Fancisco, California.

About Jernigan Capital

Jernigan Capital, Inc. was a real estate investment trust focused on the U.S. self-storage industry. The company provided financing and investment capital for the development of self-storage properties, partnering with developers and operators on projects across the country. Founded by self-storage industry executive Dean Jernigan, the company made debt and equity investments in development-stage facilities and, in some cases, retained ownership interests as projects were completed. Jernigan served as the company’s chairman and chief executive officer.