Landmark Bancorp (NASDAQ:LARK – Get Free Report) and Sound Financial Bancorp (NASDAQ:SFBC – Get Free Report) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, dividends, risk, profitability and earnings.
Insider and Institutional Ownership
25.7% of Landmark Bancorp shares are owned by institutional investors. Comparatively, 68.8% of Sound Financial Bancorp shares are owned by institutional investors. 9.8% of Landmark Bancorp shares are owned by insiders. Comparatively, 12.3% of Sound Financial Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of current ratings and price targets for Landmark Bancorp and Sound Financial Bancorp, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Landmark Bancorp | 0 | 1 | 0 | 1 | 3.00 |
| Sound Financial Bancorp | 0 | 1 | 0 | 0 | 2.00 |
Valuation and Earnings
This table compares Landmark Bancorp and Sound Financial Bancorp”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Landmark Bancorp | $95.97 million | 2.05 | $18.77 million | $3.37 | 9.59 |
| Sound Financial Bancorp | $61.52 million | 1.90 | $7.16 million | $3.36 | 13.51 |
Landmark Bancorp has higher revenue and earnings than Sound Financial Bancorp. Landmark Bancorp is trading at a lower price-to-earnings ratio than Sound Financial Bancorp, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Landmark Bancorp and Sound Financial Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Landmark Bancorp | 21.19% | 12.68% | 1.29% |
| Sound Financial Bancorp | 13.88% | 7.82% | 0.79% |
Dividends
Landmark Bancorp pays an annual dividend of $0.84 per share and has a dividend yield of 2.6%. Sound Financial Bancorp pays an annual dividend of $0.84 per share and has a dividend yield of 1.9%. Landmark Bancorp pays out 24.9% of its earnings in the form of a dividend. Sound Financial Bancorp pays out 25.0% 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. Landmark Bancorp has raised its dividend for 6 consecutive years and Sound Financial Bancorp has raised its dividend for 2 consecutive years. Landmark Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility and Risk
Landmark Bancorp has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500. Comparatively, Sound Financial Bancorp has a beta of 0.05, suggesting that its stock price is 95% less volatile than the S&P 500.
Summary
Landmark Bancorp beats Sound Financial Bancorp on 13 of the 16 factors compared between the two stocks.
About Landmark Bancorp
Landmark Bancorp, Inc. is a bank holding company headquartered in Manhattan, Kansas. Through its principal subsidiary, Landmark National Bank, the company provides community banking services to individuals, families, farmers, and businesses. Landmark National Bank offers a range of financial products, including checking and savings accounts, certificates of deposit, consumer loans, residential and commercial real estate loans, agricultural lending, and business financing. The bank also provides online and mobile banking, treasury management, wealth management, and other services designed to support personal and commercial financial needs.
About Sound Financial Bancorp
Sound Financial Bancorp, Inc. is a bank holding company headquartered in Seattle, Washington. Through its principal subsidiary, Sound Community Bank, the company provides banking and financial services to individuals, families, businesses and nonprofit organizations in the Puget Sound region. Sound Community Bank offers deposit products, including checking, savings, money market and certificate accounts, along with residential mortgage, commercial real estate, construction, commercial and industrial, consumer and small-business loans.
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