Jernigan Capital (NASDAQ:JCAP – Get Free Report) and Happen Bank (NASDAQ:HAPN – Get Free Report) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, dividends, earnings, institutional ownership and profitability.
Volatility & Risk
Jernigan Capital has a beta of -0.05, suggesting that its stock price is 105% less volatile than the S&P 500. Comparatively, Happen Bank has a beta of 1.61, suggesting that its stock price is 61% more volatile than the S&P 500.
Earnings and Valuation
This table compares Jernigan Capital and Happen Bank”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Jernigan Capital | $659.62 million | 1.81 | $187.96 million | $2.45 | 8.50 |
| Happen Bank | $1.05 billion | 1.78 | $135.68 million | $1.79 | 9.04 |
Jernigan Capital has higher earnings, but lower revenue than Happen Bank. Jernigan Capital is trading at a lower price-to-earnings ratio than Happen Bank, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Jernigan Capital and Happen Bank’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Jernigan Capital | 23.50% | 35.87% | 8.16% |
| Happen Bank | 20.16% | 13.62% | 1.71% |
Institutional & Insider Ownership
74.1% of Happen Bank shares are owned by institutional investors. 8.3% of Jernigan Capital shares are owned by company insiders. Comparatively, 3.3% of Happen Bank shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Ratings
This is a breakdown of recent recommendations for Jernigan Capital and Happen Bank, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Jernigan Capital | 0 | 2 | 4 | 1 | 2.86 |
| Happen Bank | 0 | 1 | 3 | 0 | 2.75 |
Jernigan Capital presently has a consensus target price of $27.50, indicating a potential upside of 32.08%. Happen Bank has a consensus target price of $23.33, indicating a potential upside of 44.21%. Given Happen Bank’s higher possible upside, analysts plainly believe Happen Bank is more favorable than Jernigan Capital.
Summary
Jernigan Capital beats Happen Bank on 10 of the 15 factors compared between the two stocks.
About Jernigan Capital
Jernigan Capital is a New York Stock Exchange-listed real estate investment trust (NYSE: JCAP) that provides debt and equity capital to private developers, owners and operators of self-storage facilities with a view to eventual outright ownership of facilities the Company finances. The Company's mission is to maximize shareholder value by accumulating a multi-billion dollar investment portfolio consisting of the newest, most attractive and best located self-storage facilities in the United States through a talented and experienced team demonstrating the highest levels of integrity, dedication, excellence and community.
About Happen Bank
Happen Bank, originally founded as LendingClub in 2006, is a digital bank primarily built for high-FICO, high-income borrowers that are actively managing their financial lives. The company offers products to make financial progress both fast and easy. Additionally, the company provides advanced credit underwriting, a proprietary technology platform, and a marketplace bank model intended to drive value for members, loan investors, and shareholders. Happen Bank is headquartered in San Fancisco, California.
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