Head-To-Head Contrast: Stock Yards Bancorp (NASDAQ:SYBT) versus Norwood Financial (NASDAQ:NWFL)

Stock Yards Bancorp (NASDAQ:SYBT) and Norwood Financial (NASDAQ:NWFL) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, profitability, earnings, analyst recommendations and risk.

Analyst Ratings

This is a breakdown of current recommendations for Stock Yards Bancorp and Norwood Financial, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stock Yards Bancorp 0 0 2 0 3.00
Norwood Financial 0 0 1 0 3.00

Stock Yards Bancorp presently has a consensus target price of $42.00, indicating a potential upside of 5.47%. Given Stock Yards Bancorp’s higher probable upside, analysts plainly believe Stock Yards Bancorp is more favorable than Norwood Financial.

Profitability

This table compares Stock Yards Bancorp and Norwood Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stock Yards Bancorp 31.69% 15.90% 1.76%
Norwood Financial 25.83% 10.33% 1.15%

Dividends

Stock Yards Bancorp pays an annual dividend of $1.08 per share and has a dividend yield of 2.7%. Norwood Financial pays an annual dividend of $1.00 per share and has a dividend yield of 4.1%. Stock Yards Bancorp pays out 37.4% of its earnings in the form of a dividend. Stock Yards Bancorp has raised its dividend for 8 consecutive years and Norwood Financial has raised its dividend for 4 consecutive years.

Risk and Volatility

Stock Yards Bancorp has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, Norwood Financial has a beta of 0.47, meaning that its stock price is 53% less volatile than the S&P 500.

Earnings & Valuation

This table compares Stock Yards Bancorp and Norwood Financial’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Stock Yards Bancorp $197.55 million 4.57 $66.07 million $2.89 13.78
Norwood Financial $54.06 million 2.86 $14.22 million N/A N/A

Stock Yards Bancorp has higher revenue and earnings than Norwood Financial.

Institutional and Insider Ownership

52.3% of Stock Yards Bancorp shares are held by institutional investors. Comparatively, 20.8% of Norwood Financial shares are held by institutional investors. 6.6% of Stock Yards Bancorp shares are held by company insiders. Comparatively, 6.6% of Norwood Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Stock Yards Bancorp beats Norwood Financial on 12 of the 15 factors compared between the two stocks.

About Stock Yards Bancorp

Stock Yards Bancorp, Inc. operates as the holding company for Stock Yards Bank & Trust Company that provides commercial and personal banking services in Louisville, Indianapolis, and Cincinnati. Its deposit products include demand deposits, savings deposits, money market deposits, and time deposits. The company's loan portfolio comprises commercial and industrial, construction and development, undeveloped land, real estate mortgage, and consumer loans; and originates and sells single-family residential mortgages. In addition, it offers securities brokerage services through an arrangement with a third party broker-dealer; and investment management, trust, employee benefit plan, estate administration, and financial planning services. As of December 31, 2018, the company had 38 full service banking locations, including 28 in the Louisville metropolitan statistical area (MSA), 5 in Indianapolis MSA, and 5 in Cincinnati MSA. Stock Yards Bancorp, Inc. was founded in 1904 and is headquartered in Louisville, Kentucky.

About Norwood Financial

Norwood Financial Corp. operates as the bank holding company for Wayne Bank that provides various banking products and services. The company accepts a range of deposit products, including interest-bearing and non-interest bearing transaction accounts, and statement savings and money market accounts, as well as certificate of deposits. It also provides various loans, such as commercial loans comprising lines of credit, revolving credit, term loans, mortgages, secured lending products, and letter of credit facilities; municipal finance lending; construction loans for commercial construction projects and single-family residences; land loans; consumer loans; mortgage lending to finance principal residences and second home dwellings; and indirect dealer financing of new and used automobiles, boats, and recreational vehicles. In addition, the company offers investment securities services; trust and investment products; and cash management, direct deposit, remote deposit capture, mobile deposit capture, mobile payment, automated clearing house activity, title and real estate settlement, and Internet and mobile banking services. Further, it is involved in the annuity and mutual fund sale, and discount brokerage activities, as well as insurance agency business. The company serves consumers, businesses, nonprofit organizations, and municipalities. It operates 14 offices in Northeastern Pennsylvania; and 12 offices in Delaware and Sullivan Counties, New York, as well as 27 automated teller machines. The company was founded in 1870 and is headquartered in Honesdale, Pennsylvania.

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