Nicolet Bankshares (NASDAQ:NCBS) and SmartFinancial (NASDAQ:SMBK) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, risk, profitability, analyst recommendations, institutional ownership and valuation.
Institutional & Insider Ownership
41.9% of Nicolet Bankshares shares are owned by institutional investors. Comparatively, 44.9% of SmartFinancial shares are owned by institutional investors. 15.7% of Nicolet Bankshares shares are owned by company insiders. Comparatively, 9.2% of SmartFinancial 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.
This table compares Nicolet Bankshares and SmartFinancial’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Nicolet Bankshares||$211.83 million||3.35||$60.12 million||$5.70||12.64|
|SmartFinancial||$133.04 million||2.87||$24.33 million||$1.82||13.88|
Nicolet Bankshares has higher revenue and earnings than SmartFinancial. Nicolet Bankshares is trading at a lower price-to-earnings ratio than SmartFinancial, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Nicolet Bankshares has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500. Comparatively, SmartFinancial has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500.
This table compares Nicolet Bankshares and SmartFinancial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations and price targets for Nicolet Bankshares and SmartFinancial, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Nicolet Bankshares presently has a consensus price target of $89.00, suggesting a potential upside of 23.51%. SmartFinancial has a consensus price target of $30.50, suggesting a potential upside of 20.70%. Given Nicolet Bankshares’ higher possible upside, equities research analysts plainly believe Nicolet Bankshares is more favorable than SmartFinancial.
Nicolet Bankshares beats SmartFinancial on 10 of the 15 factors compared between the two stocks.
About Nicolet Bankshares
Nicolet Bankshares, Inc. is a holding company, which engages in the provision of commercial and consumer banking services through its subsidiary. It offers lending and deposit gathering, ancillary banking-related, trust, brokerage, and other investment management products and services. The firm also delivers commercial-related and residential real estate loans. The company was founded by Robert Bruc Atwell and Michael E. Daniels on April 5, 2000 and is headquartered in Green Bay, WI.
SmartFinancial, Inc. is a holding company, which engages in the provision of commercial banking services through SmartBank. The firm manages branches and loan production offices in a footprint spanning East Tennessee, Southwest Alabama, the Florida Panhandle, and North Georgia. It operates through the following portfolio segments: Commercial Real Estate; Consumer Real Estate; Construction and Land Development; Commercial and Industrial; and Consumer and Other. The Commercial Real Estate segment includes owner-occupied commercial real estate loans and loans secured by income-producing properties. The Consumer Real Estate segment comprises of real estate loans such as home equity lines. The Construction and Land Development segment consists of credit to real estate developers or investors. The Commercial and Industrial segment provides commercial and financial loans. The Consumer and Other segment gives direct consumer installment loans, overdrafts, and other revolving credit and educational loans. The company was founded on September 19, 1983 and is headquartered in Knoxville, TN.
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