SEC BANCORP INC/SH SH (OTCMKTS:SCYT) and Provident Financial (NASDAQ:PROV) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, profitability, earnings, analyst recommendations and dividends.
Insider & Institutional Ownership
4.2% of SEC BANCORP INC/SH SH shares are owned by institutional investors. Comparatively, 55.0% of Provident Financial shares are owned by institutional investors. 14.4% of Provident Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares SEC BANCORP INC/SH SH and Provident Financial’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|SEC BANCORP INC/SH SH||N/A||N/A||N/A||N/A||N/A|
|Provident Financial||$64.61 million||2.40||$2.13 million||$0.70||29.53|
Provident Financial has higher revenue and earnings than SEC BANCORP INC/SH SH.
SEC BANCORP INC/SH SH pays an annual dividend of $1.00 per share and has a dividend yield of 1.8%. Provident Financial pays an annual dividend of $0.56 per share and has a dividend yield of 2.7%. Provident Financial pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Provident Financial has raised its dividend for 8 consecutive years. Provident Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a breakdown of recent ratings and recommmendations for SEC BANCORP INC/SH SH and Provident Financial, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|SEC BANCORP INC/SH SH||0||0||0||0||N/A|
Provident Financial has a consensus price target of $22.00, suggesting a potential upside of 6.43%. Given Provident Financial’s higher probable upside, analysts plainly believe Provident Financial is more favorable than SEC BANCORP INC/SH SH.
This table compares SEC BANCORP INC/SH SH and Provident Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|SEC BANCORP INC/SH SH||N/A||N/A||N/A|
Volatility & Risk
SEC BANCORP INC/SH SH has a beta of 0.18, indicating that its stock price is 82% less volatile than the S&P 500. Comparatively, Provident Financial has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500.
Provident Financial beats SEC BANCORP INC/SH SH on 11 of the 12 factors compared between the two stocks.
About SEC BANCORP INC/SH SH
Security Bancorp, Inc. operates as the bank holding company for Security Federal Savings Bank that provides banking, financial, and mortgage services to individual and corporate customers primarily in Warren County, Tennessee. The company's deposit products include checking and savings accounts, and certificates of deposit. It also offers consumer loans; mortgage loans; and commercial loans, including installment loans and lines of credit, as well as provides trust services. In addition, the company provides wealth and financial management services that include mutual funds, stocks, and bonds; rollovers; personal and small business retirement plans; fixed, variable, and indexed annuities; life insurance; trust and estate services; and other plans, as well as online, mobile, and telephone banking services. It operates through three full-service bank locations and five ATM locations in Warren County. Security Bancorp, Inc. was founded in 1960 and is headquartered in McMinnville, Tennessee.
About Provident Financial
Provident Financial Holdings, Inc. operates as the holding company for Provident Savings Bank, F.S.B. that provides community and mortgage banking services to consumers and small to mid-sized businesses in the Inland Empire region of Southern California. It operates through two segments, Provident Bank and Provident Bank Mortgage. The company's deposit products include checking, savings, and money market accounts, as well as time deposits; and loan portfolio consists of single-family, multi-family, commercial real estate, construction, commercial business, consumer, and other mortgage loans. It also originates, purchases, and sells single-family mortgage loans, including second mortgages and equity lines of credit. In addition, the company offers investment services comprising the sale of investment products, such as annuities and mutual funds; and trustee services for real estate transactions. It operates through 13 full-service banking offices in Riverside County and 1 full-service banking office in San Bernardino County. The company was founded in 1956 and is based in Riverside, California.
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