Head to Head Analysis: Suncrest Bank (OTCMKTS:SBKK) and TowneBank (NASDAQ:TOWN)

Suncrest Bank (OTCMKTS:SBKK) and TowneBank (NASDAQ:TOWN) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, dividends, risk and analyst recommendations.

Risk and Volatility

Suncrest Bank has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, TowneBank has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500.

Institutional & Insider Ownership

5.9% of Suncrest Bank shares are owned by institutional investors. Comparatively, 56.0% of TowneBank shares are owned by institutional investors. 8.1% of TowneBank shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Suncrest Bank and TowneBank, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Suncrest Bank	0	0	0	0	0.00
TowneBank	0	0	1	0	3.00

TowneBank has a consensus price target of $40.00, suggesting a potential upside of 16.65%. Given TowneBank’s stronger consensus rating and higher probable upside, analysts plainly believe TowneBank is more favorable than Suncrest Bank.

Profitability

This table compares Suncrest Bank and TowneBank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Suncrest Bank	N/A	N/A	N/A
TowneBank	14.89%	7.32%	0.90%

Earnings and Valuation

This table compares Suncrest Bank and TowneBank”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Suncrest Bank	$46.73 million	4.92	$16.96 million	$1.37	13.56
TowneBank	$941.58 million	2.73	$153.71 million	$1.99	17.23

TowneBank has higher revenue and earnings than Suncrest Bank. Suncrest Bank is trading at a lower price-to-earnings ratio than TowneBank, indicating that it is currently the more affordable of the two stocks.

Summary

TowneBank beats Suncrest Bank on 13 of the 14 factors compared between the two stocks.

About Suncrest Bank

Suncrest Bank engages in the provision of personal and commercial banking services. It provides checking, savings and certificates of deposits, lending, cash management, online and mobile banking, e-statements, remote deposit capture, financial calculators, and customer service center. It also offers agricultural real estate loans, production finance, equipment financing and leasing, development loans, long-term fixed rate, SBA and USDA loans, valley small business guaranteed loans, USDA B&I loans, farmer mac loans, and cal-cap loans. The company was founded on May 19, 2008 and is headquartered in Visalia, CA.

About TowneBank

TowneBank provides retail and commercial banking services for individuals, commercial enterprises, and professionals. The company operates through three segments: Banking, Realty, and Insurance. It accepts various deposits, including demand deposits, savings accounts, money rate savings, certificates of deposit, and individual retirement accounts. The company also offers secured and unsecured personal loans for financing automobiles, home improvements, education, and personal investments; commercial loans for working capital, business expansion, and equipment and machinery purchases; and mortgage loans, as well as real estate acquisition, development, and construction loans. In addition, it provides other services, such as safe deposit boxes, treasury management services, direct deposit of payroll and social security checks, and automatic drafts for various accounts, as well as online, mobile, and on-call banking services. Further, the company offers documentation services to accomplish tax deferral to investors; investment and asset management services; commercial mortgage brokerage services; and other financial services, such as financial, retirement, and estate planning services, as well as assistance on various investment options comprising alternative investments, annuities, margin accounts, convertible bonds, and pension and profit-sharing plans. Additionally, it provides residential real estate, relocation, property management, vacation rentals, and title and settlement services; and originates residential mortgage loans. The company also offers life, property, casualty, and vehicle insurance services; and employee benefit programs, such as health, dental, vision, and disability insurance. It operates in Richmond, Virginia, the Greater Hampton Roads region in southeastern Virginia, northeastern North Carolina, Raleigh, Charlotte, Greensboro, and Greenville, North Carolina. TowneBank was incorporated in 1998 and is based in Portsmouth, Virginia.