QCR (NASDAQ:QCRH – Get Free Report) and Peoples Bancorp of North Carolina (NASDAQ:PEBK – Get Free Report) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, analyst recommendations, profitability, dividends, institutional ownership and risk.
Profitability
This table compares QCR and Peoples Bancorp of North Carolina’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| QCR | 22.86% | 12.87% | 1.50% |
| Peoples Bancorp of North Carolina | 17.25% | 12.75% | 1.15% |
Institutional and Insider Ownership
70.0% of QCR shares are owned by institutional investors. Comparatively, 43.8% of Peoples Bancorp of North Carolina shares are owned by institutional investors. 3.2% of QCR shares are owned by insiders. Comparatively, 14.5% of Peoples Bancorp of North Carolina shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Volatility and Risk
Analyst Ratings
This is a summary of current ratings for QCR and Peoples Bancorp of North Carolina, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| QCR | 0 | 2 | 4 | 0 | 2.67 |
| Peoples Bancorp of North Carolina | 0 | 0 | 1 | 0 | 3.00 |
QCR presently has a consensus price target of $108.75, indicating a potential upside of 6.03%. Given QCR’s higher probable upside, equities research analysts plainly believe QCR is more favorable than Peoples Bancorp of North Carolina.
Dividends
QCR pays an annual dividend of $0.40 per share and has a dividend yield of 0.4%. Peoples Bancorp of North Carolina pays an annual dividend of $0.84 per share and has a dividend yield of 1.9%. QCR pays out 4.7% of its earnings in the form of a dividend. Peoples Bancorp of North Carolina pays out 23.1% 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. Peoples Bancorp of North Carolina has raised its dividend for 1 consecutive years. Peoples Bancorp of North Carolina is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings & Valuation
This table compares QCR and Peoples Bancorp of North Carolina”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| QCR | $603.75 million | 2.78 | $127.19 million | $8.46 | 12.12 |
| Peoples Bancorp of North Carolina | $114.60 million | 2.11 | $19.83 million | $3.64 | 12.18 |
QCR has higher revenue and earnings than Peoples Bancorp of North Carolina. QCR is trading at a lower price-to-earnings ratio than Peoples Bancorp of North Carolina, indicating that it is currently the more affordable of the two stocks.
Summary
QCR beats Peoples Bancorp of North Carolina on 12 of the 17 factors compared between the two stocks.
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.
About Peoples Bancorp of North Carolina
Peoples Bancorp of North Carolina, Inc. operates as the bank holding company for Peoples Bank that provides various banking products and services for individuals and small-to medium-sized businesses. It offers checking, savings, money market, and retirement accounts; certificates of deposits; and credit and debit cards. The company also originates commercial real estate loans, commercial loans, construction and land development loans, and residential mortgage loans; and individual taxpayer identification number mortgage loans, as well as agricultural loans. In addition, it provides investment counseling and non-deposit investment products, such as stocks, bonds, mutual funds, tax deferred annuities, and related brokerage services; and real estate appraisal and brokerage services. Further, the company operates as a clearing-house for the provision of appraisal services for community banks; and acquires, manages, and disposes real property, other collateral, and other assets obtained in the ordinary course of collecting debts. Peoples Bancorp of North Carolina, Inc. was founded in 1912 and is headquartered in Newton, North Carolina.
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