Benchmark Bankshares (OTCMKTS:BMBN – Get Free Report) and South Plains Financial (NASDAQ:SPFI – Get Free Report) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, risk, earnings and institutional ownership.
Earnings and Valuation
This table compares Benchmark Bankshares and South Plains Financial”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Benchmark Bankshares | $83.37 million | 2.22 | $19.84 million | $4.46 | 9.30 |
| South Plains Financial | $223.64 million | 3.76 | $58.47 million | $3.67 | 11.96 |
Dividends
Benchmark Bankshares pays an annual dividend of $1.00 per share and has a dividend yield of 2.4%. South Plains Financial pays an annual dividend of $0.72 per share and has a dividend yield of 1.6%. Benchmark Bankshares pays out 22.4% of its earnings in the form of a dividend. South Plains Financial pays out 19.6% 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. South Plains Financial has increased its dividend for 5 consecutive years.
Analyst Recommendations
This is a breakdown of recent recommendations for Benchmark Bankshares and South Plains Financial, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Benchmark Bankshares | 0 | 0 | 0 | 0 | 0.00 |
| South Plains Financial | 0 | 1 | 6 | 0 | 2.86 |
South Plains Financial has a consensus price target of $49.60, indicating a potential upside of 13.04%. Given South Plains Financial’s stronger consensus rating and higher possible upside, analysts plainly believe South Plains Financial is more favorable than Benchmark Bankshares.
Insider and Institutional Ownership
3.2% of Benchmark Bankshares shares are held by institutional investors. Comparatively, 55.0% of South Plains Financial shares are held by institutional investors. 14.0% of Benchmark Bankshares shares are held by insiders. Comparatively, 24.3% of South Plains Financial shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Benchmark Bankshares and South Plains Financial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Benchmark Bankshares | 23.80% | N/A | N/A |
| South Plains Financial | 20.79% | 13.23% | 1.44% |
Risk and Volatility
Benchmark Bankshares has a beta of 0.12, indicating that its stock price is 88% less volatile than the S&P 500. Comparatively, South Plains Financial has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500.
Summary
South Plains Financial beats Benchmark Bankshares on 14 of the 17 factors compared between the two stocks.
About Benchmark Bankshares
Benchmark Bankshares, Inc. operates as the holding company for Benchmark Community Bank that provides various banking products and services in the United States. The company accepts various deposits, such as checking, saving, commercial services, and youth accounts. Its loan products include personal, mortgage, other real estate, business, auto, and student loans. The company also offers credit and debit cards; wealth management services comprising financial solutions, financial and retirement planning, and portfolio management, as well as estate, charitable giving, and trust services; and reorder checks, safe deposit boxes, wire transfers, bill pay, and internet and mobile banking services. The company was founded in 1971 and is based in Kenbridge, Virginia.
About South Plains Financial
South Plains Financial, Inc. operates as a bank holding company for City Bank that provides commercial and consumer financial services to small and medium-sized businesses and individuals. The company operates through two segments, Banking and Insurance. It offers deposit products, including demand deposit accounts, interest-bearing products, savings accounts, and certificate of deposits. The company also provides commercial real estate loans; general and specialized commercial loans, including agricultural production and real estate, energy, finance, investment, and insurance loans, as well as loans to goods, services, restaurant and retail, construction, and other industries; residential construction loans; and 1-4 family residential loans, auto loans, and other loans for recreational vehicles or other purposes. In addition, it offers crop insurance products; trust products and services; investment services; mortgage banking services; online and mobile banking services; and debit and credit cards. The company was founded in 1941 and is headquartered in Lubbock, Texas.
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