Stock Yards Bancorp (NASDAQ: SYBT) and Opus Bank (NASDAQ:OPB) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, risk, valuation, institutional ownership and dividends.

Valuation & Earnings

This table compares Stock Yards Bancorp and Opus Bank’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Stock Yards Bancorp $145.71 million 6.12 $41.02 million $1.90 20.71
Opus Bank $336.69 million 2.82 $11.45 million $0.68 40.74

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

Insider and Institutional Ownership

47.7% of Stock Yards Bancorp shares are held by institutional investors. Comparatively, 98.5% of Opus Bank shares are held by institutional investors. 6.2% of Stock Yards Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Stock Yards Bancorp has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500. Comparatively, Opus Bank has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500.

Dividends

Stock Yards Bancorp pays an annual dividend of $0.84 per share and has a dividend yield of 2.1%. Opus Bank does not pay a dividend. Stock Yards Bancorp pays out 44.2% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current recommendations and price targets for Stock Yards Bancorp and Opus Bank, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stock Yards Bancorp 0 1 0 0 2.00
Opus Bank 0 3 2 0 2.40

Stock Yards Bancorp currently has a consensus price target of $38.00, indicating a potential downside of 3.43%. Opus Bank has a consensus price target of $28.50, indicating a potential upside of 2.89%. Given Opus Bank’s stronger consensus rating and higher probable upside, analysts clearly believe Opus Bank is more favorable than Stock Yards Bancorp.

Profitability

This table compares Stock Yards Bancorp and Opus Bank’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stock Yards Bancorp 28.57% 13.51% 1.42%
Opus Bank 8.30% 3.11% 0.39%

Stock Yards Bancorp Company Profile

Stock Yards Bancorp, Inc. is the holding company for Stock Yards Bank & Trust Company (the Bank). The Bank is a state chartered bank. The Company operates through two segments: commercial banking, and wealth management and trust. The commercial banking segment provides a full range of loan and deposit products to individual consumers and businesses, plus origination of consumer mortgages and securities brokerage activity. The wealth management and trust segment provides investment management, trust and estate administration, and retirement plan services. The Bank provides commercial and personal banking services in the Louisville, Kentucky, Indianapolis, Indiana and Cincinnati, Ohio metropolitan markets through 37 full service banking offices, as of December 31, 2016. The Bank also originates and sells single-family residential mortgages. Additionally, the Bank offers securities brokerage services via its branch network through an arrangement with a third party broker-dealer.

Opus Bank Company Profile

Opus Bank is a commercial bank. The Company provides banking products, services and solutions to its clients through its Retail Bank, Commercial Bank, Merchant Bank, and Correspondent Bank. The Company’s Commercial Bank consists Commercial Banking, Business Banking, Healthcare Banking, Technology Banking, Fiduciary Banking, Institutional Syndications and Commercial Real Estate Banking (CREB), which includes Income Property Banking, its Structured Finance Group and Capital Markets Group. Through its Merchant Bank, the Company offers transaction support, and debt and equity capital to entrepreneurs, small and mid-sized business and middle-market companies. Through its Retail Bank, the Company provides banking solutions for small and mid-sized companies, entrepreneurs, real estate investors, professional and high net worth individuals. Through its Correspondent Bank, the Company offers loan and depository services to other financial institutions.

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