USCB Financial (NASDAQ:USCB – Get Free Report) and QCR (NASDAQ:QCRH – Get Free Report) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, institutional ownership and analyst recommendations.
Dividends
USCB Financial pays an annual dividend of $0.20 per share and has a dividend yield of 1.1%. QCR pays an annual dividend of $0.24 per share and has a dividend yield of 0.3%. USCB Financial pays out 19.4% of its earnings in the form of a dividend. QCR pays out 3.5% 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.
Institutional and Insider Ownership
61.3% of USCB Financial shares are held by institutional investors. Comparatively, 70.0% of QCR shares are held by institutional investors. 48.5% of USCB Financial shares are held by insiders. Comparatively, 3.7% of QCR shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| USCB Financial | 0 | 1 | 2 | 1 | 3.00 |
| QCR | 0 | 0 | 3 | 0 | 3.00 |
USCB Financial presently has a consensus price target of $16.38, indicating a potential downside of 6.96%. QCR has a consensus price target of $76.00, indicating a potential downside of 3.31%. Given QCR’s higher probable upside, analysts clearly believe QCR is more favorable than USCB Financial.
Earnings & Valuation
This table compares USCB Financial and QCR”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| USCB Financial | $75.39 million | 4.63 | $16.55 million | $1.03 | 17.09 |
| QCR | $350.01 million | 3.79 | $113.56 million | $6.89 | 11.41 |
QCR has higher revenue and earnings than USCB Financial. QCR is trading at a lower price-to-earnings ratio than USCB Financial, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
USCB Financial has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500. Comparatively, QCR has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500.
Profitability
This table compares USCB Financial and QCR’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| USCB Financial | 15.12% | 10.55% | 0.86% |
| QCR | 19.25% | 12.92% | 1.36% |
Summary
QCR beats USCB Financial on 11 of the 16 factors compared between the two stocks.
About USCB Financial
USCB Financial Holdings, Inc. operates as the bank holding company for U.S. Century Bank that engages in the provision of various personal and business banking products and services in the United States. It accepts various deposit products, including commercial and consumer checking, money market deposit, savings, and time deposit accounts, as well as certificates of deposit. It also offers loan products, such as small business administration loans, yacht financing, residential and commercial real estate loans; commercial and industrial loans; foreign bank loans; and secured and unsecured consumer loans comprising personal loans, overdrafts, and deposit account collateralized loans. The company also offers lockbox, treasury, commercial payments, cash management, and online banking services, as well as provides title insurance policies for real estate transactions. USCB Financial Holdings, Inc. was founded in 2002 and is headquartered in Miami, Florida.
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.
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