South Plains Financial (NASDAQ:SPFI – Get Free Report) and Auburn National Bancorporation (NASDAQ:AUBN – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, institutional ownership, earnings, profitability and valuation.
Insider & Institutional Ownership
55.0% of South Plains Financial shares are owned by institutional investors. Comparatively, 39.5% of Auburn National Bancorporation shares are owned by institutional investors. 24.6% of South Plains Financial shares are owned by insiders. Comparatively, 25.1% of Auburn National Bancorporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares South Plains Financial and Auburn National Bancorporation”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| South Plains Financial | $296.89 million | 2.24 | $58.47 million | $3.44 | 11.83 |
| Auburn National Bancorporation | $42.21 million | 1.99 | $7.26 million | $2.08 | 11.54 |
South Plains Financial has higher revenue and earnings than Auburn National Bancorporation. Auburn National Bancorporation is trading at a lower price-to-earnings ratio than South Plains Financial, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares South Plains Financial and Auburn National Bancorporation’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| South Plains Financial | 19.69% | 12.51% | 1.32% |
| Auburn National Bancorporation | 16.42% | 8.41% | 0.72% |
Analyst Recommendations
This is a summary of recent ratings and recommmendations for South Plains Financial and Auburn National Bancorporation, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| South Plains Financial | 0 | 0 | 5 | 1 | 3.17 |
| Auburn National Bancorporation | 0 | 1 | 0 | 0 | 2.00 |
South Plains Financial presently has a consensus target price of $46.75, suggesting a potential upside of 14.92%. Given South Plains Financial’s stronger consensus rating and higher probable upside, equities analysts clearly believe South Plains Financial is more favorable than Auburn National Bancorporation.
Volatility and Risk
South Plains Financial has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, Auburn National Bancorporation has a beta of 0.42, meaning that its share price is 58% less volatile than the S&P 500.
Dividends
South Plains Financial pays an annual dividend of $0.68 per share and has a dividend yield of 1.7%. Auburn National Bancorporation pays an annual dividend of $1.08 per share and has a dividend yield of 4.5%. South Plains Financial pays out 19.8% of its earnings in the form of a dividend. Auburn National Bancorporation pays out 51.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. South Plains Financial has increased its dividend for 5 consecutive years.
Summary
South Plains Financial beats Auburn National Bancorporation on 16 of the 18 factors compared between the two stocks.
About South Plains Financial
South Plains Financial, Inc. operates as a bank holding company for City Bank that provides commercial and consumer financial services to small and medium-sized businesses and individuals. The company operates through two segments, Banking and Insurance. It offers deposit products, including demand deposit accounts, interest-bearing products, savings accounts, and certificate of deposits. The company also provides commercial real estate loans; general and specialized commercial loans, including agricultural production and real estate, energy, finance, investment, and insurance loans, as well as loans to goods, services, restaurant and retail, construction, and other industries; residential construction loans; and 1-4 family residential loans, auto loans, and other loans for recreational vehicles or other purposes. In addition, it offers crop insurance products; trust products and services; investment services; mortgage banking services; online and mobile banking services; and debit and credit cards. The company was founded in 1941 and is headquartered in Lubbock, Texas.
About Auburn National Bancorporation
Auburn National Bancorporation, Inc. operates as the bank holding company for AuburnBank that provides various banking products and services in East Alabama. The company offers checking, savings, and transaction deposit accounts, as well as certificates of deposit. It also provides commercial, financial, agricultural, real estate construction, and consumer loan products; and other financial services. In addition, the company offers automated teller services; debit cards; online banking, bill payment, and other electronic banking services; and safe deposit boxes. Auburn National Bancorporation, Inc. was founded in 1907 and is headquartered in Auburn, Alabama.
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