Head to Head Survey: Surrey Bancorp (OTCMKTS:SRYB) and Columbia Banking System (NASDAQ:COLB)

Surrey Bancorp (OTCMKTS:SRYBGet Rating) and Columbia Banking System (NASDAQ:COLBGet Rating) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.

Profitability

This table compares Surrey Bancorp and Columbia Banking System’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Surrey Bancorp 30.75% N/A N/A
Columbia Banking System 31.91% 9.30% 1.14%

Dividends

Surrey Bancorp pays an annual dividend of $0.42 per share and has a dividend yield of 2.9%. Columbia Banking System pays an annual dividend of $1.20 per share and has a dividend yield of 4.2%. Surrey Bancorp pays out 38.2% of its earnings in the form of a dividend. Columbia Banking System pays out 42.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Surrey Bancorp and Columbia Banking System, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Surrey Bancorp 0 0 0 0 N/A
Columbia Banking System 0 3 2 0 2.40

Columbia Banking System has a consensus target price of $35.60, suggesting a potential upside of 25.09%. Given Columbia Banking System’s higher possible upside, analysts plainly believe Columbia Banking System is more favorable than Surrey Bancorp.

Risk and Volatility

Surrey Bancorp has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, Columbia Banking System has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500.

Valuation and Earnings

This table compares Surrey Bancorp and Columbia Banking System’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Surrey Bancorp $16.20 million 3.67 $5.10 million $1.10 13.20
Columbia Banking System $630.16 million 3.55 $202.82 million $2.80 10.16

Columbia Banking System has higher revenue and earnings than Surrey Bancorp. Columbia Banking System is trading at a lower price-to-earnings ratio than Surrey Bancorp, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

3.7% of Surrey Bancorp shares are owned by institutional investors. Comparatively, 94.4% of Columbia Banking System shares are owned by institutional investors. 33.7% of Surrey Bancorp shares are owned by company insiders. Comparatively, 0.6% of Columbia Banking System shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Columbia Banking System beats Surrey Bancorp on 11 of the 15 factors compared between the two stocks.

Surrey Bancorp Company Profile (Get Rating)

Surrey Bancorp operates as the bank holding company for Surrey Bank & Trust that provides various banking products and services for individuals and small to medium sized businesses in Surry County, North Carolina and Patrick County, and Virginia and the surrounding area. It offers checking and savings accounts, certificates of deposit, overdrafts, and individual retirement accounts. The company also provides mortgages; real estate, consumer, and personal loans; lines of credit; commercial credit products; government-guaranteed loans; and credit cards. In addition, it offers cash management, international, merchant card, and other business services; and electronic banking and safe deposit box services. The company was founded in 2003 and is based in Mount Airy, North Carolina.

Columbia Banking System Company Profile (Get Rating)

Columbia Banking System, Inc. operates as the bank holding company for Columbia State Bank that provides a range of banking services to small and medium-sized businesses, professionals, and individuals in the United States. It offers personal banking products and services, including noninterest and interest-bearing checking, savings, money market, and certificate of deposit accounts; home mortgages for purchases and refinances, home equity loans and lines of credit, and other personal loans; debit and credit cards; and digital banking services. The company also provides business banking products and services, such as checking, savings, interest-bearing money market, and certificate of deposit accounts; agricultural, asset-based, builder, and other commercial real estate loans, as well as loans guaranteed by the small business administration; and professional banking, treasury management, merchant card, and international banking services. In addition, it offers wealth management solutions that include financial planning services, such as asset allocation, net worth analysis, estate planning and preservation, education funding, and wealth transfer; long-term care, and life and disability insurance solutions; individual retirement solutions comprising retirement planning, retirement income strategies, and traditional and Roth individual retirement accounts; and business solutions, which comprise business retirement plans, key person insurance, business succession planning, and deferred compensation plans to individuals, families, and professional businesses. Further, the company provides fiduciary, investment, and administrative trust services, such as personal and special needs trusts, estate settlement, and investment agency and charitable management. It operates a network of 153 branch locations, including 68 in the state of Washington, 59 in Oregon, 15 in Idaho, and 11 in California. The company was founded in 1993 and is headquartered in Tacoma, Washington.

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