Financial Survey: Madison County Financial (OTCMKTS:MCBK) and Sound Financial Bancorp (NASDAQ:SFBC)

Madison County Financial (OTCMKTS:MCBKGet Free Report) and Sound Financial Bancorp (NASDAQ:SFBCGet Free Report) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, dividends, earnings and valuation.

Profitability

This table compares Madison County Financial and Sound Financial Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Madison County Financial N/A N/A N/A
Sound Financial Bancorp 10.54% 6.01% 0.59%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Madison County Financial and Sound Financial Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Madison County Financial 0 0 0 0 N/A
Sound Financial Bancorp 0 0 0 0 N/A

Risk and Volatility

Madison County Financial has a beta of 0.15, indicating that its share price is 85% less volatile than the S&P 500. Comparatively, Sound Financial Bancorp has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500.

Earnings and Valuation

This table compares Madison County Financial and Sound Financial Bancorp’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Madison County Financial $28.02 million 2.10 $3.23 million N/A N/A
Sound Financial Bancorp $37.07 million 2.75 $7.44 million $2.33 17.08

Sound Financial Bancorp has higher revenue and earnings than Madison County Financial.

Dividends

Madison County Financial pays an annual dividend of $0.30 per share and has a dividend yield of 1.4%. Sound Financial Bancorp pays an annual dividend of $0.76 per share and has a dividend yield of 1.9%. Sound Financial Bancorp pays out 32.6% of its earnings in the form of a dividend. Sound Financial Bancorp has raised its dividend for 1 consecutive years. Sound Financial Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

68.8% of Sound Financial Bancorp shares are owned by institutional investors. 16.9% of Madison County Financial shares are owned by company insiders. Comparatively, 12.6% of Sound Financial Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Sound Financial Bancorp beats Madison County Financial on 10 of the 12 factors compared between the two stocks.

About Madison County Financial

(Get Free Report)

Madison County Financial, Inc. operates as the holding company for Madison County Bank that provides banking and financial services to individual and corporate customers in Nebraska, the United States. It offers checking, money market savings, savings, and individual retirement accounts; certificates of deposit; credit and debit cards; home loans; and consumer loans, including home equity lines of credit, second mortgage, home improvement, recreational vehicle, personal, and overdraft protection loans, as well as loans for automobiles, trucks, and vans. The company also provides agricultural real estate, machinery and equipment, livestock and crop, and operating loans; and commercial real estate, construction, investment property, and working capital loans, as well as equipment financing services. In addition, it offers online and mobile banking, and merchant services. The company was formerly known as Madison County Holding Company and changed its name to Madison County Financial, Inc. in October 2012. Madison County Financial, Inc. was founded in 1888 and is headquartered in Madison, Nebraska.

About Sound Financial Bancorp

(Get Free Report)

Sound Financial Bancorp, Inc. operates as the bank holding company for Sound Community Bank that provides banking and other financial services for consumers and businesses. It accepts various deposits products comprising savings, money market deposit, NOW, and demand accounts, as well as certificates of deposit. The company also offers loans secured by first and second mortgages on one-to four-family residences; home equity loans, including fixed-rate loans and variable-rate lines of credit; commercial and multifamily real estate loans; construction loans secured by single-family residences, and commercial and multifamily real estate; land loans; commercial business loans to finance commercial vehicles and equipment, as well as loans secured by accounts receivable and/or inventory; and secured and unsecured consumer loans, such as new and used manufactured homes, floating homes, automobiles, boats, and recreational vehicle loans, and loans secured by deposit accounts. The company was founded in 1953 and is headquartered in Seattle, Washington.

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