SunTrust Banks (NYSE:STI) and SouthCrest Financial Group (OTCMKTS:SCSG) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Earnings & Valuation

This table compares SunTrust Banks and SouthCrest Financial Group’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SunTrust Banks $10.43 billion 2.79 $2.78 billion $5.70 11.36
SouthCrest Financial Group $24.75 million 2.38 $13.66 million N/A N/A

SunTrust Banks has higher revenue and earnings than SouthCrest Financial Group.

Risk & Volatility

SunTrust Banks has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500. Comparatively, SouthCrest Financial Group has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500.

Profitability

This table compares SunTrust Banks and SouthCrest Financial Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SunTrust Banks 26.61% 12.40% 1.31%
SouthCrest Financial Group N/A N/A N/A

Analyst Ratings

This is a breakdown of current ratings and target prices for SunTrust Banks and SouthCrest Financial Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SunTrust Banks 0 12 6 0 2.33
SouthCrest Financial Group 0 0 1 0 3.00

SunTrust Banks currently has a consensus target price of $72.96, indicating a potential upside of 12.64%. Given SunTrust Banks’ higher probable upside, equities research analysts clearly believe SunTrust Banks is more favorable than SouthCrest Financial Group.

Dividends

SunTrust Banks pays an annual dividend of $2.00 per share and has a dividend yield of 3.1%. SouthCrest Financial Group pays an annual dividend of $0.16 per share and has a dividend yield of 1.7%. SunTrust Banks pays out 35.1% of its earnings in the form of a dividend. SunTrust Banks has increased its dividend for 6 consecutive years. SunTrust Banks is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

83.0% of SunTrust Banks shares are held by institutional investors. Comparatively, 3.8% of SouthCrest Financial Group shares are held by institutional investors. 0.5% of SunTrust Banks shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

SunTrust Banks beats SouthCrest Financial Group on 13 of the 15 factors compared between the two stocks.

About SunTrust Banks

SunTrust Banks, Inc. operates as the holding company for SunTrust Bank that provides various financial services for consumers, businesses, corporations, and institutions in the United States. It operates through two segments, Consumer and Wholesale. The Consumer segment provides deposits and payments; home equity and personal credit lines; auto, student, and other lending products; credit cards; discount/online and full-service brokerage products; professional investment advisory products and services; and trust services, as well as family office solutions. This segment also offers residential mortgage products in the secondary market. The Wholesale segment provides capital markets solutions, including advisory, capital raising, and financial risk management, as well as lease financing solutions; cash management services and auto dealer financing solutions; and construction, mini-perm, and permanent real estate financing, as well as tailored financing and equity investment solutions. This segment also offers treasury and payment solutions, such as operating various electronic and paper payment types, which comprise card, wire transfer, automated clearing house, check, and cash; and provides services clients to manage their accounts online. The company offers its products and services through a network of traditional and in-store branches, automated teller machines, Internet, mobile, and telephone banking channels. As of December 31, 2017, it operated 1,268 full-service banking offices located in Florida, Georgia, Virginia, North Carolina, Tennessee, Maryland, South Carolina, and the District of Columbia. SunTrust Banks, Inc. was founded in 1891 and is headquartered in Atlanta, Georgia.

About SouthCrest Financial Group

SouthCrest Financial Group, Inc. operates as the bank holding company for SouthCrest Bank, N.A. that provides banking services. The company accepts checking, savings, and money market accounts; and certificates of deposit. Its loan products include personal loans for cars, boats, recreational vehicles, and other purchases; home equity lines of credit; loans on investment properties; owner occupied real estate, construction and development, equipment and inventory, practice, and Georgia entertainment tax credit financing; construction to permanent, investment real estate, and acquisition and development loans; and working capital and lines of credit. The company also offers credit and debit cards; remote deposit capture, positive pay, ACH, online wires, merchant, business payroll, and reorder checks services; and online banking, online bill pay, mobile banking and deposit, telephone banking, and ATM services. It serves retail, private, entrepreneurial, high-net-worth, and commercial customers. As of April 26, 2018, the company operated through 9 branches in Georgia. SouthCrest Financial Group, Inc. was founded in 1910 and is headquartered in Atlanta, Georgia.

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