Contrasting Stock Yards Bancorp (SYBT) & Old Line Bancshares, Inc. (MD) (OLBK)

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Stock Yards Bancorp (NASDAQ:SYBT) and Old Line Bancshares, Inc. (MD) (NASDAQ:OLBK) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, dividends, valuation and profitability.

Insider & Institutional Ownership

49.9% of Stock Yards Bancorp shares are held by institutional investors. Comparatively, 50.0% of Old Line Bancshares, Inc. (MD) shares are held by institutional investors. 8.4% of Stock Yards Bancorp shares are held by insiders. Comparatively, 10.6% of Old Line Bancshares, Inc. (MD) shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Stock Yards Bancorp has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500. Comparatively, Old Line Bancshares, Inc. (MD) has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500.

Valuation and Earnings

This table compares Stock Yards Bancorp and Old Line Bancshares, Inc. (MD)’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Stock Yards Bancorp $175.12 million 4.62 $55.52 million $2.42 14.69
Old Line Bancshares, Inc. (MD) $123.25 million 3.69 $27.22 million $2.19 12.23

Stock Yards Bancorp has higher revenue and earnings than Old Line Bancshares, Inc. (MD). Old Line Bancshares, Inc. (MD) is trading at a lower price-to-earnings ratio than Stock Yards Bancorp, indicating that it is currently the more affordable of the two stocks.

Dividends

Stock Yards Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 2.8%. Old Line Bancshares, Inc. (MD) pays an annual dividend of $0.40 per share and has a dividend yield of 1.5%. Stock Yards Bancorp pays out 41.3% of its earnings in the form of a dividend. Old Line Bancshares, Inc. (MD) pays out 18.3% 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. Stock Yards Bancorp has increased its dividend for 7 consecutive years and Old Line Bancshares, Inc. (MD) has increased its dividend for 3 consecutive years. Stock Yards Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for Stock Yards Bancorp and Old Line Bancshares, Inc. (MD), as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stock Yards Bancorp 0 1 0 0 2.00
Old Line Bancshares, Inc. (MD) 0 2 3 0 2.60

Stock Yards Bancorp presently has a consensus target price of $36.00, indicating a potential upside of 1.27%. Old Line Bancshares, Inc. (MD) has a consensus target price of $35.75, indicating a potential upside of 33.50%. Given Old Line Bancshares, Inc. (MD)’s stronger consensus rating and higher possible upside, analysts plainly believe Old Line Bancshares, Inc. (MD) is more favorable than Stock Yards Bancorp.

Profitability

This table compares Stock Yards Bancorp and Old Line Bancshares, Inc. (MD)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stock Yards Bancorp 31.70% 16.07% 1.68%
Old Line Bancshares, Inc. (MD) 22.08% 11.31% 1.30%

Summary

Stock Yards Bancorp beats Old Line Bancshares, Inc. (MD) on 10 of the 17 factors compared between the two stocks.

Stock Yards Bancorp Company Profile

Stock Yards Bancorp, Inc. operates as the holding company for Stock Yards Bank & Trust Company that provides commercial and personal banking services in Louisville, Indianapolis, and Cincinnati. Its deposit products include demand deposits, savings deposits, certificates of deposit, money market deposits, and time deposits. The company's loan portfolio comprises commercial and industrial, construction and development, undeveloped land, real estate mortgage, and consumer loans; and originates and sells single-family residential mortgages. In addition, it offers securities brokerage services through an arrangement with a third party broker-dealer; and investment management, trust, employee benefit plan, estate administration, and financial planning services. As of December 31, 2017, the company had 37 banking locations, including 28 full service banking locations in the Louisville metropolitan statistical area (MSA), 4 full service banking locations in the Indianapolis MSA, and 5 full service banking locations in the Cincinnati MSA. Stock Yards Bancorp, Inc. was founded in 1904 and is headquartered in Louisville, Kentucky.

Old Line Bancshares, Inc. (MD) Company Profile

Old Line Bancshares, Inc. operates as the bank holding company for Old Line Bank that provides banking products and services to small and medium size businesses, entrepreneurs, professionals, consumers, and high net worth clients. The company accepts a range of deposit products, including demand, NOW, money market, and savings accounts, as well as certificates of deposit. It also offers commercial and industrial loans, such as lines of credit, revolving credit facilities, accounts receivable financing, term loans, equipment loans, small business administration loans, standby letters of credit, and unsecured loans; commercial real estate loans; funds for the construction of single family residences, financing to builders for the construction of pre-sold homes, and loans for multi-family housing, as well as home equity and home improvement loans; land acquisition and development loans; and consumer installment loans. In addition, the company provides safe deposit boxes, wire transfer services, automated teller machine services, and Internet and mobile banking services; debit, prepaid, and credit cards; commercial account services comprising direct deposit of payroll, overnight sweep, lockbox, and remote deposit capture; and investment services consisting of investment management, estate and succession planning, and brokerage services. As of December 31, 2017, it operated a total of 28 branches and 9 loan production offices in suburban Maryland counties of Anne Arundel, Calvert, Charles, Prince George's, Montgomery, Frederick, and St. Mary's; and Baltimore and Carroll. Old Line Bancshares, Inc. was founded in 1989 and is headquartered in Bowie, Maryland.

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