SouthCrest Financial Group (OTCMKTS:SCSG) and Guaranty Bancshares (NASDAQ:GNTY) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Analyst Ratings

This is a summary of recent ratings for SouthCrest Financial Group and Guaranty Bancshares, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SouthCrest Financial Group 0 0 0 0 N/A
Guaranty Bancshares 0 2 1 0 2.33

Guaranty Bancshares has a consensus target price of $33.33, suggesting a potential upside of 7.08%. Given Guaranty Bancshares’ higher possible upside, analysts clearly believe Guaranty Bancshares is more favorable than SouthCrest Financial Group.

Profitability

This table compares SouthCrest Financial Group and Guaranty Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SouthCrest Financial Group N/A N/A N/A
Guaranty Bancshares 21.99% 10.42% 1.13%

Risk and Volatility

SouthCrest Financial Group has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500. Comparatively, Guaranty Bancshares has a beta of 0.07, suggesting that its stock price is 93% less volatile than the S&P 500.

Dividends

SouthCrest Financial Group pays an annual dividend of $0.20 per share and has a dividend yield of 2.2%. Guaranty Bancshares pays an annual dividend of $0.72 per share and has a dividend yield of 2.3%. Guaranty Bancshares pays out 32.0% of its earnings in the form of a dividend. Guaranty Bancshares has increased its dividend for 2 consecutive years. Guaranty Bancshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

7.9% of SouthCrest Financial Group shares are held by institutional investors. Comparatively, 22.1% of Guaranty Bancshares shares are held by institutional investors. 22.6% of Guaranty Bancshares shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares SouthCrest Financial Group and Guaranty Bancshares’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SouthCrest Financial Group N/A N/A N/A N/A N/A
Guaranty Bancshares $119.53 million 3.01 $26.28 million $2.25 13.84

Guaranty Bancshares has higher revenue and earnings than SouthCrest Financial Group.

Summary

Guaranty Bancshares beats SouthCrest Financial Group on 10 of the 12 factors compared between the two stocks.

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.

About Guaranty Bancshares

Guaranty Bancshares, Inc. operates as the bank holding company for Guaranty Bank & Trust, N.A. that provides a range of commercial and consumer banking products and services for small- and medium-sized businesses, professionals, and individuals. It offers various deposit products, such as checking and savings, money market, and business accounts, as well as certificates of deposit; and loan products comprising commercial and industrial, construction and development, 1-4 family residential, commercial real estate, farmland and agricultural, multi-family residential, and consumer loans. The company also provides trust, wealth management, and retirement plan services; online, mobile, and telephone banking, as well as automated teller machine services; debit cards; night depository and direct deposit services; cashier's checks and letters of credit; and treasury management services, including wire transfer, positive pay, remote deposit capture, and automated clearinghouse services. As of December 31, 2018, it operated 30 full service banking locations in East Texas, Central Texas, the Dallas/Fort Worth metropolitan statistical area (MSA), and the Houston MSA. The company was founded in 1913 and is headquartered in Addison, Texas.

Receive News & Ratings for SouthCrest Financial Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for SouthCrest Financial Group and related companies with MarketBeat.com's FREE daily email newsletter.