Financial Survey: QCR (NASDAQ:QCRH) versus USCB Financial (NASDAQ:USCB)

USCB Financial (NASDAQ:USCB) and QCR (NASDAQ:QCRH) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, dividends, valuation, profitability, risk, earnings and institutional ownership.

Volatility & Risk

USCB Financial has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500. Comparatively, QCR has a beta of 0.98, meaning that its stock 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%

Insider and Institutional 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 company insiders. Comparatively, 3.7% of QCR shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for USCB Financial and QCR, as reported by MarketBeat.com.

	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 target price of $16.38, suggesting a potential downside of 10.03%. QCR has a consensus target price of $76.00, suggesting a potential downside of 5.82%. Given QCR’s higher possible upside, analysts clearly believe QCR is more favorable than USCB Financial.

Earnings & Valuation

This table compares USCB Financial and QCR”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
USCB Financial	$108.42 million	3.33	$16.55 million	$1.03	17.67
QCR	$350.01 million	3.89	$113.56 million	$6.89	11.71

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.

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.

Summary

QCR beats USCB Financial on 12 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.