Financial Survey: Suruga Bank (OTCMKTS:SUGBY) versus Security Bancorp (OTCMKTS:SCYT)

Dividends

Suruga Bank pays an annual dividend of $3.63 per share and has a dividend yield of 4.5%. Security Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 0.9%. Suruga Bank pays out 27.7% of its earnings in the form of a dividend. Security Bancorp pays out 6.5% 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Suruga Bank	33.98%	11.18%	0.99%
Security Bancorp	24.05%	N/A	N/A

Volatility & Risk

Suruga Bank has a beta of -0.05, meaning that its stock price is 105% less volatile than the S&P 500. Comparatively, Security Bancorp has a beta of 0.05, meaning that its stock price is 95% less volatile than the S&P 500.

Earnings and Valuation

This table compares Suruga Bank and Security Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Suruga Bank	$730.15 million	1.89	$230.70 million	$13.12	6.10
Security Bancorp	$24.35 million	1.75	$5.49 million	$15.41	7.27

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

Summary

Suruga Bank beats Security Bancorp on 7 of the 11 factors compared between the two stocks.

About Suruga Bank

Suruga Bank Ltd. provides various banking and financial products and services to individuals and corporate customers in Japan. The company offers deposit products, such as time, ordinary, savings, foreign currency, and other deposits, as well as current and general accounts; card, housing, second house, startup, and business up term loans, as well as loans by purpose; credit and debit cards; overdrafts; and other financing products. It also provides investment trust, public bond, pension contribution, insurance, inheritance/trust, lottery, foreign currency, pay-easy, web direct, safe deposit box, external linkage, foreign remittance, fund management, e-combination, payment, nursing care/medical care/dispensing compensation receivable factoring, mortgage, and Internet and telephone banking services. In addition, the company offers staffing, money lending, guarantee, printing, leasing, and agency services. The company was incorporated in 1895 and is headquartered in Numazu, Japan.

About Security Bancorp

Security Bancorp, Inc. operates as the bank holding company for Security Federal Savings Bank that provides banking products and services to individual and corporate customers in Tennessee. The company's deposit products include checking and savings accounts, and certificates of deposit. It also offers consumer loans; mortgage loans; and commercial loans, including installment loans, lines of credit, and real estate lending. In addition, the company provides financial services, as well as online, mobile, and telephone banking services. Security Bancorp, Inc. was founded in 1960 and is headquartered in McMinnville, Tennessee.