ServisFirst Bancshares (NASDAQ:SFBS – Get Free Report) and QCR (NASDAQ:QCRH – Get Free Report) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.
Dividends
ServisFirst Bancshares pays an annual dividend of $1.20 per share and has a dividend yield of 1.9%. QCR pays an annual dividend of $0.24 per share and has a dividend yield of 0.4%. ServisFirst Bancshares pays out 32.9% of its earnings in the form of a dividend. QCR pays out 3.6% 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 9 consecutive years. ServisFirst Bancshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Risk and Volatility
ServisFirst Bancshares has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500. Comparatively, QCR has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ServisFirst Bancshares | $843.66 million | 4.07 | $206.85 million | $3.65 | 17.27 |
| QCR | $546.09 million | 1.80 | $113.56 million | $6.73 | 8.70 |
ServisFirst Bancshares has higher revenue and earnings than QCR. QCR is trading at a lower price-to-earnings ratio than ServisFirst Bancshares, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and target prices for ServisFirst Bancshares and QCR, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ServisFirst Bancshares | 0 | 1 | 0 | 0 | 2.00 |
| QCR | 0 | 0 | 3 | 0 | 3.00 |
ServisFirst Bancshares currently has a consensus target price of $64.00, indicating a potential upside of 1.52%. QCR has a consensus target price of $72.00, indicating a potential upside of 22.93%. Given QCR’s stronger consensus rating and higher possible upside, analysts plainly believe QCR is more favorable than ServisFirst Bancshares.
Profitability
This table compares ServisFirst Bancshares and QCR’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ServisFirst Bancshares | 22.31% | 14.84% | 1.32% |
| QCR | 20.80% | 13.78% | 1.38% |
Institutional & Insider Ownership
67.3% of ServisFirst Bancshares shares are owned by institutional investors. Comparatively, 70.0% of QCR shares are owned by institutional investors. 7.4% of ServisFirst Bancshares shares are owned by insiders. Comparatively, 3.7% of QCR shares are owned 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
ServisFirst Bancshares beats QCR on 9 of the 17 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 QCR
QCR Holdings, Inc., a multi-bank holding company, provides commercial and consumer banking, and trust and asset management services. The company's deposit products include noninterest-bearing demand, interest-bearing demand, time, and brokered deposits. It also provides various commercial and retail lending/leasing, and investment services to corporations, partnerships, individuals, and government agencies. The company's loan portfolio comprises loans to small and mid-sized businesses; business loans, including lines of credit for working capital and operational purposes; term loans for the acquisition of facilities, equipment, and other purposes; commercial and residential real estate loans; and installment and other consumer loans, such as home improvement, home equity, motor vehicle, and signature loans, as well as small personal credit lines. In addition, it engages in leasing of machinery and equipment to commercial and industrial businesses under direct financing lease contracts; and issuance of trust preferred securities. QCR Holdings, Inc. was incorporated in 1993 and is headquartered in Moline, Illinois.
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