Contrasting County Bancorp (NASDAQ:ICBK) and Security Federal (OTCMKTS:SFDL)

County Bancorp (NASDAQ:ICBK) and Security Federal (OTCMKTS:SFDL) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, earnings, dividends, profitability, analyst recommendations, valuation and risk.

Analyst Ratings

This is a summary of current recommendations for County Bancorp and Security Federal, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
County Bancorp 0 0 3 0 3.00
Security Federal 0 0 0 0 N/A

County Bancorp presently has a consensus target price of $26.00, suggesting a potential upside of 4.00%. Given County Bancorp’s higher possible upside, research analysts plainly believe County Bancorp is more favorable than Security Federal.

Earnings & Valuation

This table compares County Bancorp and Security Federal’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
County Bancorp $69.72 million 2.18 $5.48 million $1.56 16.03
Security Federal $48.52 million 2.28 $7.05 million N/A N/A

Security Federal has lower revenue, but higher earnings than County Bancorp.

Dividends

County Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 1.6%. Security Federal pays an annual dividend of $0.44 per share and has a dividend yield of 1.3%. County Bancorp pays out 25.6% of its earnings in the form of a dividend. County Bancorp has increased its dividend for 1 consecutive years. County Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

County Bancorp has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, Security Federal has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500.

Institutional and Insider Ownership

28.0% of County Bancorp shares are held by institutional investors. 25.1% of County Bancorp shares are held by company insiders. Comparatively, 35.7% of Security Federal shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares County Bancorp and Security Federal’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
County Bancorp 20.75% 9.06% 0.98%
Security Federal 18.90% 8.38% 0.80%

Summary

County Bancorp beats Security Federal on 10 of the 15 factors compared between the two stocks.

About County Bancorp

County Bancorp, Inc. operates as the bank holding company for Investors Community Bank that provides a range of consumer and commercial banking services to individuals, businesses, and industries primarily in northeastern and central Wisconsin. It accepts demand interest bearing and noninterest bearing, money market deposit, NOW, checking, and savings accounts, as well as time deposits. The company also offers agricultural loans; commercial and industrial loans, such as conventional term loans, and lines of credit and government guaranteed loans; commercial real estate mortgage loans, including multi-family investment properties and investment retail, office, mini-storage, and warehouse loans; and consumer and residential real estate loans. In addition, it provides mobile and internet banking, remote merchant deposit capture, cash management, safe deposit, direct deposit, notary, night depository, cashier's check, and drive-in teller services, as well as credit, debit, and ATM cards; and crop insurance and milk margin products. The company operates full-service branches in Manitowoc, Appleton, Green Bay, and Stevens Point; and loan production offices in Darlington, Eau Claire, Fond du Lac, and Sheboygan. County Bancorp, Inc. was founded in 1996 and is headquartered in Manitowoc, Wisconsin.

About Security Federal

Security Federal Corporation operates as the bank holding company for Security Federal Bank that provides various banking products and services. It accepts various deposit products, such as savings accounts, checking accounts, various money market accounts, fixed interest rate certificates, negotiated rate jumbo certificates of deposit, and individual retirement accounts. The company also originates commercial real estate loans, commercial business loans, and consumer loans, as well as mortgage loans to buy or refinance one-to-four family residential real estate; and construction loans on single-family residences, multi-family dwellings and projects, and commercial real estate. In addition, it provides loans for the acquisition, development, and construction of residential subdivisions and commercial projects. Further, the company offers trust, financial planning, and financial management services; and operates an insurance agency that offers auto, business, life, health, and home insurance products, as well as provides insurance premium financing services. Additionally, it invests in various types of liquid assets, including U.S. Treasury obligations and securities of various federal agencies, certificates of deposit at insured institutions, mutual funds, bankers' acceptances and federal funds, as well as commercial paper and corporate debt securities. As of February 8, 2021, the company operated 17 full-service branch offices in Aiken, Ballentine, Clearwater, Columbia, Graniteville, Langley, Lexington, North Augusta, Ridge Spring, Wagener, and West Columbia, South Carolina; and Augusta and Evans, Georgia. Security Federal Corporation was founded in 1922 and is headquartered in Aiken, South Carolina.

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