Live Oak Bancshares (NASDAQ: LOB – Get Rating) and ChoiceOne Financial Services (NASDAQ: COFS – Get Rating) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, earnings, valuation, analyst recommendations, institutional ownership and profitability.
Live Oak Bancshares pays an annual dividend of $ 0.12 per share and has a dividend yield of 0.4%. ChoiceOne Financial Services pays an annual dividend of $ 1.00 per share and has a dividend yield of 5.0%. Live Oak Bancshares pays out 3.3% of its earnings in the form of a dividend. ChoiceOne Financial Services pays out 35.7% 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. ChoiceOne Financial Services has increased its dividend for 11 consecutive years. ChoiceOne Financial Services is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Live Oak Bancshares and ChoiceOne Financial Services’ net margins, return on equity and return on assets.
|Net Margins:||Return on Equity:||Return on Assets:|
|Live Oak Bancshares:||30.72%||23.36%||1.95%|
|ChoiceOne Financial Services:||25.43%||9.85%||0.93%|
This is a summary of recent recommendations for Live Oak Bancshares and ChoiceOne Financial Services, as provided by MarketBeat.com.
|Sell Ratings:||Hold Ratings:||Buy Ratings:||Strong Buy Ratings:||Rating Score:|
|Live Oak Bancshares:||0:||0:||3:||0:||3.00:|
|ChoiceOne Financial Services:||0:||0:||0:||0:||N / A:|
Live Oak Bancshares presently has a consensus price target of $ 63.00, suggesting a potential upside of 84.37%. Given Live Oak Bancshares’ higher probable upside, equities analysts plainly believe Live Oak Bancshares is more favorable than ChoiceOne Financial Services.
Earnings & Valuation:
This table compares Live Oak Bancshares and ChoiceOne Financial Services’ revenue, earnings per share and valuation.
|Gross Revenue:||Price / Sales Ratio:||Net Income:||Earnings Per Share:||Price / Earnings Ratio:|
|Live Oak Bancshares:||$ 521.41 million:||2.87:||$ 166.99 million:||$ 3.59:||9.52:|
|ChoiceOne Financial Services:||$ 83.81 million:||1.77:||$ 22.04 million:||$ 2.80:||7.09:|
Live Oak Bancshares has higher revenue and earnings than ChoiceOne Financial Services. ChoiceOne Financial Services is trading at a lower price-to-earnings ratio than Live Oak Bancshares, indicating that it is currently the most affordable of the two stocks.
Insider & Institutional Ownership:
62.2% of Live Oak Bancshares shares are owned by institutional investors. Comparatively, 10.9% of ChoiceOne Financial Services shares are owned by institutional investors. 26.4% of Live Oak Bancshares shares are owned by company insiders. Comparatively, 6.9% of ChoiceOne Financial Services shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Risk and Volatility:
Live Oak Bancshares has a beta of 1.54, indicating that its stock price is 54% more volatile than the S&P 500. Comparatively, ChoiceOne Financial Services has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500.
Live Oak Bancshares beats ChoiceOne Financial Services on 14 of the 16 factors compared between the two stocks.
About Live Oak Bancshares: (Get Rating)
Live Oak Bancshares, Inc. operates as the bank holding company for Live Oak Banking Company that provides various commercial banking products and services to individuals, small businesses, and professionals in North Carolina, the United States. The company accepts various deposit products, including noninterest-bearing demand, as well as interest-bearing checking, money market, savings, and time deposits. It also offers commercial and industrial loans; construction and development loans; owner occupied and non-owner occupied collateral commercial real estate loans; and commercial land loans. In addition, the company provides settlement, accounting, and securitization services for government guaranteed loans; wealth and investment management services to high-net-worth individuals and families; investment advisory services to a series of funds focused on providing venture capital to new and emerging financial technology companies; and an on-site restaurant location to company employees and business visitors. Live Oak Bancshares, Inc. was incorporated in 2008 and is headquartered in Wilmington, North Carolina.
About ChoiceOne Financial Services: (Get Rating)
ChoiceOne Financial Services, Inc. operates as the bank holding company for ChoiceOne Bank that provides community banking services to corporations, partnerships, and individuals in Michigan. The company offers various deposit products, including time, savings, and demand deposits, safe deposit, and automated transaction machine services. It also provides commercial loans, such as business, industry, agricultural, construction, inventory, and real estate loans; and consumer loans comprising direct and indirect loans to consumers and purchasers of residential and real properties. In addition, the company offers safe deposit and automated transaction machine services; and alternative investment products, including annuities and mutual funds, as well as sells insurance policies, such as life and health for commercial and consumer clients. It operates 32 full-service offices in Kent, Muskegon, Newaygo, and Ottawa, Lapeer, Macomb, and St. Clair counties, Michigan. The company also operates three loan production offices. ChoiceOne Financial Services, Inc. was founded in 1898 and is headquartered in Sparta, Michigan.
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