ServisFirst Bancshares (NYSE:SFBS) vs. Sturgis Bancorp (OTCMKTS:STBI) Head-To-Head Contrast

ServisFirst Bancshares (NYSE:SFBS) and Sturgis Bancorp (OTCMKTS:STBI) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Earnings and Valuation

This table compares ServisFirst Bancshares and Sturgis Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ServisFirst Bancshares	$1.02 billion	4.19	$276.60 million	$5.42	14.40
Sturgis Bancorp	$59.13 million	0.94	$7.46 million	$3.66	7.04

ServisFirst Bancshares has higher revenue and earnings than Sturgis Bancorp. Sturgis Bancorp is trading at a lower price-to-earnings ratio than ServisFirst Bancshares, indicating that it is currently the more affordable of the two stocks.

Dividends

ServisFirst Bancshares pays an annual dividend of $1.52 per share and has a dividend yield of 1.9%. Sturgis Bancorp pays an annual dividend of $0.72 per share and has a dividend yield of 2.8%. ServisFirst Bancshares pays out 28.0% of its earnings in the form of a dividend. Sturgis Bancorp pays out 19.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. ServisFirst Bancshares has raised its dividend for 10 consecutive years. Sturgis Bancorp is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

ServisFirst Bancshares has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500. Comparatively, Sturgis Bancorp has a beta of 0.18, indicating that its share price is 82% less volatile than the S&P 500.

Insider & Institutional Ownership

67.3% of ServisFirst Bancshares shares are owned by institutional investors. 6.5% of ServisFirst Bancshares shares are owned by company insiders. Comparatively, 16.0% of Sturgis Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares ServisFirst Bancshares and Sturgis Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ServisFirst Bancshares	28.80%	16.95%	1.74%
Sturgis Bancorp	13.20%	N/A	N/A

Analyst Ratings

This is a breakdown of current ratings and target prices for ServisFirst Bancshares and Sturgis Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ServisFirst Bancshares	0	2	2	1	2.80
Sturgis Bancorp	0	0	0	0	0.00

ServisFirst Bancshares currently has a consensus price target of $94.33, suggesting a potential upside of 20.85%. Given ServisFirst Bancshares’ stronger consensus rating and higher possible upside, equities analysts plainly believe ServisFirst Bancshares is more favorable than Sturgis Bancorp.

Summary

ServisFirst Bancshares beats Sturgis Bancorp on 15 of the 18 factors compared between the two stocks.

About ServisFirst Bancshares

ServisFirst Bancshares, Inc. operates as the bank holding company for ServisFirst Bank that provides various banking services to individual and corporate customers. It accepts demand, time, savings, and other deposits; checking, money market, and IRA accounts; and certificates of deposit. The company's loan products include commercial lending products, including seasonal, bridge, and term loans for working capital, expansion of the business, acquisition of property, and plant and equipment, as well as commercial lines of credit; commercial real estate loans, construction and development loans, and residential real estate loans; and consumer loans, such as home equity loans, vehicle financing, loans secured by deposits, and secured and unsecured personal loans. It also offers other banking products and services comprising telephone and mobile banking, Internet banking, direct deposit, traveler's checks, safe deposit boxes, attorney trust accounts, automatic account transfers, automated teller machines, and debit and credit card systems; treasury and cash management services; wire transfer, night depository, banking-by-mail, and remote capture services; and correspondent banking services to other financial institutions. In addition, the company holds and manages participations in residential mortgages and commercial real estate loans originated by ServisFirst Bank in Alabama, Florida, Georgia, and Tennessee. The company was founded in 2005 and is headquartered in Birmingham, Alabama.

About Sturgis Bancorp

Sturgis Bancorp, Inc. operates as the bank holding company for Sturgis Bank & Trust Company that provides banking products and services in Michigan, the United States. The company offers checking, savings and health savings, and money market accounts; and certificates of deposit and individual retirement accounts. It also provides mortgage, automobile, savings secured, personal, home equity, equipment and machinery, government supported, and commercial real estate loans, as well as home equity lines of credit and business lines of credit; and credit cards. In addition, the company offers private banking, cashier checks, wire transfers, foreign drafts and foreign currency, overdraft protection, night depository, and notary services, as well as safe deposit boxes and residential mortgages. Further, it provides direct deposit, remote deposit capture, Visa check card, and checks reorder services; and investment and financial-advisory services, as well as commercial and consumer insurance and title insurance products. Additionally, the company offers estate and asset management services, such as estate settlements, trust administration, record keeping, investment management, and custody services; cash and treasury management; and online and mobile banking, bill pay, and mobile wallet services. It operates through 14 bank facilities and 4 full service standalone ATMs located in 12 communities in Michigan. Sturgis Bancorp, Inc. was founded in 1905 and is headquartered in Sturgis, Michigan.