Head to Head Analysis: Provident Financial (NASDAQ:PROV) versus Southern Banc (NASDAQ:SRNN)

Provident Financial (NASDAQ:PROV) and Southern Banc (OTCMKTS:SRNN) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, profitability, earnings, valuation, analyst recommendations, risk and institutional ownership.

Valuation & Earnings

This table compares Provident Financial and Southern Banc’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Provident Financial $64.61 million 2.48 $2.13 million $0.70 30.57
Southern Banc $5.53 million 1.22 -$560,000.00 N/A N/A

Provident Financial has higher revenue and earnings than Southern Banc.

Analyst Ratings

This is a summary of current recommendations and price targets for Provident Financial and Southern Banc, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Provident Financial 0 1 1 0 2.50
Southern Banc 0 0 0 0 N/A

Provident Financial currently has a consensus target price of $22.00, suggesting a potential upside of 2.80%. Given Provident Financial’s higher probable upside, research analysts clearly believe Provident Financial is more favorable than Southern Banc.

Insider and Institutional Ownership

55.0% of Provident Financial shares are held by institutional investors. 14.4% of Provident Financial shares are held by company insiders. Comparatively, 22.0% of Southern Banc shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Provident Financial and Southern Banc’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Provident Financial 8.35% 4.14% 0.44%
Southern Banc 7.38% 3.82% 0.44%

Dividends

Provident Financial pays an annual dividend of $0.56 per share and has a dividend yield of 2.6%. Southern Banc does not pay a dividend. Provident Financial pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Provident Financial has increased its dividend for 8 consecutive years.

Volatility & Risk

Provident Financial has a beta of 0.5, suggesting that its stock price is 50% less volatile than the S&P 500. Comparatively, Southern Banc has a beta of 0.21, suggesting that its stock price is 79% less volatile than the S&P 500.

Summary

Provident Financial beats Southern Banc on 11 of the 13 factors compared between the two stocks.

Provident Financial Company Profile

Provident Financial Holdings, Inc. operates as the holding company for Provident Savings Bank, F.S.B. that provides community and mortgage banking services to consumers and small to mid-sized businesses in the Inland Empire region of Southern California. It operates through two segments, Provident Bank and Provident Bank Mortgage. The company's deposit products include checking, savings, and money market accounts, as well as time deposits; and loan portfolio consists of single-family, multi-family, commercial real estate, construction, commercial business, consumer, and other mortgage loans. It also originates, purchases, and sells single-family mortgage loans, including second mortgages and equity lines of credit. In addition, the company offers investment services comprising the sale of investment products, such as annuities and mutual funds; and trustee services for real estate transactions. It operates through 13 full-service banking offices in Riverside County and 1 full-service banking office in San Bernardino County. The company was founded in 1956 and is based in Riverside, California.

Southern Banc Company Profile

The Southern Banc Company, Inc. operates as the holding company for The Southern Bank Company that provides various banking products and services in Alabama. Its personal banking products include checking accounts, home mortgage loans, home equity loans, auto loans, and personal loans. The company's business banking products comprise business checking accounts, cash flow management, real estate lending, and equipment financing. It also offers commercial accounts, accounts receivable management, factoring services, and online banking and ATM services. The company operates through four full service banking offices located in Gadsden, Albertville, Guntersville, and Centre, as well as through one commercial finance office located in Birmingham. The Southern Banc Company, Inc. was founded in 1936 and is based in Gadsden, Alabama.

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