South Plains Financial (NASDAQ:SPFI) and Atlantic Capital Bancshares (NASDAQ:ACBI) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Earnings & Valuation

This table compares South Plains Financial and Atlantic Capital Bancshares’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
South Plains Financial $189.57 million 1.44 $29.22 million $1.69 8.95
Atlantic Capital Bancshares $117.03 million 1.97 $49.85 million $1.20 8.89

Atlantic Capital Bancshares has lower revenue, but higher earnings than South Plains Financial. Atlantic Capital Bancshares 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 Atlantic Capital Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
South Plains Financial 15.41% 11.68% 1.05%
Atlantic Capital Bancshares 42.64% 8.58% 1.07%

Analyst Ratings

This is a summary of current recommendations for South Plains Financial and Atlantic Capital Bancshares, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
South Plains Financial 0 0 2 0 3.00
Atlantic Capital Bancshares 0 2 2 0 2.50

South Plains Financial currently has a consensus target price of $21.50, suggesting a potential upside of 42.20%. Atlantic Capital Bancshares has a consensus target price of $19.00, suggesting a potential upside of 78.07%. Given Atlantic Capital Bancshares’ higher possible upside, analysts plainly believe Atlantic Capital Bancshares is more favorable than South Plains Financial.

Institutional & Insider Ownership

22.7% of South Plains Financial shares are owned by institutional investors. Comparatively, 86.6% of Atlantic Capital Bancshares shares are owned by institutional investors. 3.6% of Atlantic Capital Bancshares shares are owned by company 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.

Summary

Atlantic Capital Bancshares beats South Plains Financial on 7 of the 12 factors compared between the two stocks.

About South Plains Financial

There is no company description available for South Plains Financial Inc.

About Atlantic Capital Bancshares

Atlantic Capital Bancshares, Inc. operates as the bank holding company for Atlantic Capital Bank, N.A. that provides banking products and services in the Metropolitan Atlanta and rest of the United States. The company offers non-interest and interest bearing demand, savings and money market, time, and brokered deposits; and NOW accounts. It also provides working capital and equipment loans, loans supported by owner-occupied real estate, revolving lines of credit, term loans, and letters of credit; secured installment and term loans, and home equity lines of credit; and commercial real estate loans, including secured construction loans, secured mini-permanent loans, and secured or unsecured lines of credit. In addition, the company offers cash and treasury management, capital market, payment processing, specialty commercial lending, small business administration and franchise lending, payroll, electronic payment, and online and mobile banking services. It serves small and mid-sized businesses, franchisees, commercial enterprises, not for profit institutions, institutional caliber commercial real estate developers and investors, public real estate investment trusts and other commercial real estate clients, and individuals and professional services businesses. The company primarily operates a loan production office Athens, Georgia; and 16 additional locations located in Fulton, Whitfield, and Oconee County, Georgia, as well as Hamilton, Union, Jefferson, Knox, and Loudon County, Tennessee. The company was founded in 2006 and is headquartered in Atlanta, Georgia.

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