Severn Bancorp (NASDAQ:SVBI) and The First of Long Island (NASDAQ:FLIC) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, valuation, institutional ownership, risk, earnings, dividends and profitability.
Earnings and Valuation
This table compares Severn Bancorp and The First of Long Island's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Severn Bancorp | $50.08 million | 3.08 | $8.37 million | N/A | N/A |
| The First of Long Island | $154.46 million | 3.33 | $41.56 million | $1.75 | 12.36 |
The First of Long Island has higher revenue and earnings than Severn Bancorp.
Profitability
This table compares Severn Bancorp and The First of Long Island's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Severn Bancorp | 11.28% | 5.07% | 0.61% |
| The First of Long Island | 26.67% | 10.78% | 1.02% |
Analyst Ratings
This is a summary of current ratings and recommmendations for Severn Bancorp and The First of Long Island, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Severn Bancorp | 0 | 0 | 0 | 0 | N/A |
| The First of Long Island | 0 | 0 | 2 | 0 | 3.00 |
The First of Long Island has a consensus price target of $19.50, indicating a potential downside of 9.85%. Given The First of Long Island's higher possible upside, analysts plainly believe The First of Long Island is more favorable than Severn Bancorp.
Institutional and Insider Ownership
24.8% of Severn Bancorp shares are owned by institutional investors. Comparatively, 56.8% of The First of Long Island shares are owned by institutional investors. 24.0% of Severn Bancorp shares are owned by company insiders. Comparatively, 5.4% of The First of Long Island shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Risk and Volatility
Severn Bancorp has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, The First of Long Island has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500.
Dividends
Severn Bancorp pays an annual dividend of $0.20 per share and has a dividend yield of 1.7%. The First of Long Island pays an annual dividend of $0.76 per share and has a dividend yield of 3.5%. The First of Long Island pays out 43.4% of its earnings in the form of a dividend. Severn Bancorp has increased its dividend for 1 consecutive years and The First of Long Island has increased its dividend for 14 consecutive years. The First of Long Island is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
The First of Long Island beats Severn Bancorp on 11 of the 15 factors compared between the two stocks.
