Analyzing QCR (NASDAQ:QCRH) & Suncrest Bank (OTCMKTS:SBKK)

QCR (NASDAQ:QCRH) and Suncrest Bank (OTCMKTS:SBKK) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, earnings, valuation, profitability, dividends, institutional ownership and analyst recommendations.

Analyst Recommendations

This is a summary of recent ratings and price targets for QCR and Suncrest Bank, as provided by MarketBeat.

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

QCR currently has a consensus target price of $82.00, suggesting a potential upside of 11.23%. Given QCR’s stronger consensus rating and higher probable upside, equities research analysts plainly believe QCR is more favorable than Suncrest Bank.

Institutional and Insider Ownership

70.0% of QCR shares are owned by institutional investors. Comparatively, 5.9% of Suncrest Bank shares are owned by institutional investors. 3.7% of QCR shares are owned by company 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.

Earnings & Valuation

This table compares QCR and Suncrest Bank”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QCR	$337.71 million	3.69	$113.85 million	$6.71	10.99
Suncrest Bank	$46.73 million	4.92	$16.96 million	$1.37	13.56

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
QCR	19.06%	12.68%	1.35%
Suncrest Bank	N/A	N/A	N/A

Risk and Volatility

QCR has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500. Comparatively, Suncrest Bank has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500.

Summary

QCR beats Suncrest Bank on 12 of the 14 factors compared between the two stocks.

About QCR

QCR Holdings, Inc., a multi-bank holding company, provides commercial and consumer banking, and trust and asset management services. The company’s deposit products include noninterest-bearing demand, interest-bearing demand, time, and brokered deposits. It also provides various commercial and retail lending/leasing, and investment services to corporations, partnerships, individuals, and government agencies. The company’s loan portfolio comprises loans to small and mid-sized businesses; business loans, including lines of credit for working capital and operational purposes; term loans for the acquisition of facilities, equipment, and other purposes; commercial and residential real estate loans; and installment and other consumer loans, such as home improvement, home equity, motor vehicle, and signature loans, as well as small personal credit lines. In addition, it engages in leasing of machinery and equipment to commercial and industrial businesses under direct financing lease contracts; and issuance of trust preferred securities. QCR Holdings, Inc. was incorporated in 1993 and is headquartered in Moline, Illinois.

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.