Comparing Green Bancorp (GNBC) & Porter Bancorp (PBIB)

Green Bancorp (NASDAQ:GNBC) and Porter Bancorp (NASDAQ:PBIB) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Green Bancorp and Porter Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Green Bancorp 0 2 3 0 2.60
Porter Bancorp 0 0 0 0 N/A

Green Bancorp presently has a consensus target price of $26.00, suggesting a potential upside of 20.87%. Given Green Bancorp’s higher probable upside, research analysts clearly believe Green Bancorp is more favorable than Porter Bancorp.

Institutional and Insider Ownership

66.9% of Green Bancorp shares are owned by institutional investors. Comparatively, 23.0% of Porter Bancorp shares are owned by institutional investors. 14.0% of Green Bancorp shares are owned by company insiders. Comparatively, 17.0% of Porter Bancorp 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.

Dividends

Green Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 1.9%. Porter Bancorp does not pay a dividend. Green Bancorp pays out 33.1% of its earnings in the form of a dividend.

Profitability

This table compares Green Bancorp and Porter Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Green Bancorp 19.41% 10.86% 1.19%
Porter Bancorp 89.19% 11.85% 0.70%

Volatility & Risk

Green Bancorp has a beta of 2.11, meaning that its share price is 111% more volatile than the S&P 500. Comparatively, Porter Bancorp has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500.

Valuation and Earnings

This table compares Green Bancorp and Porter Bancorp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Green Bancorp $190.76 million 4.21 $34.13 million $1.21 17.78
Porter Bancorp $42.38 million 2.11 $38.45 million N/A N/A

Porter Bancorp has lower revenue, but higher earnings than Green Bancorp.

Summary

Green Bancorp beats Porter Bancorp on 9 of the 14 factors compared between the two stocks.

Green Bancorp Company Profile

Green Bancorp, Inc. operates as the bank holding company for Green Bank, N.A. that provides commercial and private banking services primarily in Texas. It offers deposit accounts, such as demand, savings, money market, and time accounts. The company also provides loans, including commercial and industrial loans, including commercial lines of credit, working capital loans, commercial real estate-backed loans, mortgage-warehouse lines, term loans, equipment financing, borrowing base loans, real estate construction loans, homebuilder loans, government guaranteed loans, purchased receivables financing, letters of credit, and other loan products, as well as acquisition, expansion, and development loans to national and regional companies, real estate developers, mortgage lenders, manufacturing and industrial companies, and other businesses. In addition, it offers various consumer loans, such as residential real estate loans, home equity loans, installment loans, unsecured and secured personal lines of credit, overdraft protection, and letters of credit. Further, the company provides a range of online banking solutions, including access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; and extended drive-through hours, and ATMs, as well as banking through telephone, mail, and personal appointment. Additionally, it offers debit cards, night depository services, direct deposits, and cashier's checks, as well as treasury management, wire transfer, and automated clearing house services. The company provides its services through 22 full service branches in the greater Houston and Dallas metropolitan areas, as well as in Austin, Louisville, and Honey Grove. Green Bancorp, Inc. was founded in 1999 and is headquartered in Houston, Texas.

Porter Bancorp Company Profile

Porter Bancorp, Inc. operates as the bank holding company for Limestone Bank, Inc. that provides a range of commercial and personal banking products and services. The company offers deposit products, including checking, savings, and term certificate accounts, as well as money market accounts and fixed rate certificates. It also provides commercial loans for equipment purchases, working capital, and other financing needs of business enterprises; and commercial real estate loans that include loans on properties occupied by borrowers and tenants, as well as construction and development loans secured by land under development, or homes and commercial buildings under construction. In addition, the company offers residential real estate loans; consumer loans; agriculture loans secured by livestock, crops, and equipment; and other loans, including loans to municipalities, loans secured by stock, and overdrafts. Further, it provides drive-through banking facilities, automatic teller machines, personalized checks, credit and debit cards, electronic funds transfers through ACH services, domestic and foreign wire transfers, and loan and deposit sweep accounts; and night depository, Internet and mobile banking, treasury management, remote deposit, cash management, and vault services. The company primarily serves small to medium-sized businesses, and business owners and employees, as well as other executives and professionals. It operates 15 banking offices in 12 counties in Kentucky. Porter Bancorp, Inc. was founded in 1902 and is headquartered in Louisville, Kentucky.

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