Analyzing Berkshire Bancorp (OTCMKTS:BERK) and South Plains Financial (NASDAQ:SPFI)

South Plains Financial (NASDAQ:SPFI) and Berkshire Bancorp (OTCMKTS:BERK) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, analyst recommendations, dividends, earnings and risk.

Institutional & Insider Ownership

55.0% of South Plains Financial shares are held by institutional investors. 25.4% of South Plains Financial shares are held by insiders. Comparatively, 70.4% of Berkshire Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares South Plains Financial and Berkshire Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
South Plains Financial	21.23%	11.32%	1.06%
Berkshire Bancorp	N/A	N/A	N/A

Earnings and Valuation

This table compares South Plains Financial and Berkshire Bancorp’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
South Plains Financial	$179.35 million	2.37	$62.74 million	$3.74	6.93
Berkshire Bancorp	$20.05 million	N/A	$2.70 million	N/A	N/A

South Plains Financial has higher revenue and earnings than Berkshire Bancorp.

Analyst Ratings

This is a breakdown of recent ratings and price targets for South Plains Financial and Berkshire Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
South Plains Financial	0	0	2	0	3.00
Berkshire Bancorp	0	0	0	0	N/A

South Plains Financial currently has a consensus price target of $31.00, indicating a potential upside of 19.60%. Given South Plains Financial’s higher probable upside, equities analysts clearly believe South Plains Financial is more favorable than Berkshire Bancorp.

Summary

South Plains Financial beats Berkshire Bancorp on 8 of the 9 factors compared between the two stocks.

About South Plains Financial

South Plains Financial, Inc. operates as a bank holding company for City Bank that provides commercial and consumer financial services to small and medium-sized businesses and individuals. The company operates through two segments, Banking and Insurance. It offers deposit products, including demand deposit accounts, interest-bearing products, savings accounts, and certificate of deposits. The company also provides commercial real estate loans; general and specialized commercial loans, including agricultural production and real estate, energy, finance, investment, and insurance loans, as well as loans to goods, services, restaurant and retail, construction, and other industries; residential construction loans; and 1-4 family residential loans, auto loans, and other loans for recreational vehicles or other purposes. In addition, it offers crop insurance products; trust products and services; investment services; mortgage banking services; online and mobile banking services; and debit and credit cards. The company was founded in 1941 and is headquartered in Lubbock, Texas.

About Berkshire Bancorp

Berkshire Bancorp Inc. operates as the bank holding company for The Berkshire Bank that provides community banking services primarily to businesses, professionals, and retail customers. The company offers statement savings, NOW, money market deposit, and checking accounts, as well as certificates of deposit. It also provides commercial and industrial, commercial and residential real estate, multi-family real estate, construction, and consumer loans, as well as mortgages and finance leasing services. In addition, the company offers ATM and debit cards; safe deposit boxes; bill pay, collection, remote deposit capture, and foreign exchange services; and mobile, telephone, and online banking services. It operates through two branches located in Manhattan; four branches located in Brooklyn, New York; four branches located in Orange and Sullivan Counties in New York State; and one branch located in Teaneck, New Jersey. Berkshire Bancorp Inc. was founded in 1871 and is headquartered in New York, New York.