Surrey Bancorp (OTCMKTS:SRYB) and Commercial National Financial (OTCMKTS:CEFC) Head to Head Analysis

Surrey Bancorp (OTCMKTS:SRYB) and Commercial National Financial (OTCMKTS:CEFC) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, profitability and earnings.

Dividends

Surrey Bancorp pays an annual dividend of $0.48 per share and has a dividend yield of 2.9%. Commercial National Financial pays an annual dividend of $0.56 per share and has a dividend yield of 6.3%. Surrey Bancorp pays out 31.6% of its earnings in the form of a dividend. Commercial National Financial pays out 37.8% 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 & Insider Ownership

3.7% of Surrey Bancorp shares are owned by institutional investors. 33.7% of Surrey Bancorp shares are owned by company insiders. Comparatively, 23.0% of Commercial National Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Surrey Bancorp and Commercial National Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Surrey Bancorp	37.97%	N/A	N/A
Commercial National Financial	20.95%	N/A	N/A

Valuation & Earnings

This table compares Surrey Bancorp and Commercial National Financial’s gross 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	4.23	$5.10 million	$1.52	10.99
Commercial National Financial	$27.39 million	N/A	$6.17 million	$1.48	6.01

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Surrey Bancorp and Commercial National Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Surrey Bancorp	0	0	0	0	N/A
Commercial National Financial	0	0	0	0	N/A

Volatility & Risk

Surrey Bancorp has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500. Comparatively, Commercial National Financial has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500.

Summary

Surrey Bancorp beats Commercial National Financial on 7 of the 10 factors compared between the two stocks.

About Surrey Bancorp

Surrey BanCorp engages in the provision of banking solutions through its subsidiaries, Surrey Bank & Trust . It offers checking accounts, savings, deposit services, mortgages, real estate loans, commercial credit products, business checking, and electronic banking. The company was founded on May 1, 2003 and is headquartered in Mount Airy, NC.

About Commercial National Financial

Commercial National Financial Corporation operates as the holding company for Commercial Bank that provides various banking products and services to individuals, agricultural businesses, commercial businesses, and light industries in Michigan. The company accepts various deposit products, including checking and savings accounts, individual retirement accounts, certificates of deposit, and health savings accounts. It also offers personal loan products, such as automobile loans, recreational vehicle loans, personal lines of credit, and unsecured term loans, as well as home equity loans and mortgage loans; and business loans, including secured lines of credit, business equity line of credit, SBA loans, equipment loans, real estate loans, vehicle loans, term loans, USDA loan programs, and capital access loan programs. In addition, the company provides other services comprising business VISA check cards, debit and ATM cards, business statement savings, business certificates of deposit, merchant services, night depository, telephone banking, online banking, e-statements, direct deposit of payroll for employees, child support payments, collection of receivables, and remote deposit capture, as well as treasury services. It provides its services through offices located in Barry, Gratiot, Ingham, Kent, and Montcalm counties in Michigan. The company was founded in 1893 and is headquartered in Ithaca, Michigan.