First of Long Island (NASDAQ: SMBK) and SmartFinancial (NASDAQ:SMBK) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.
Volatility & Risk
First of Long Island has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500. Comparatively, SmartFinancial has a beta of 0.13, suggesting that its stock price is 87% less volatile than the S&P 500.
This table compares First of Long Island and SmartFinancial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|First of Long Island||28.08%||11.05%||0.98%|
Insider and Institutional Ownership
55.9% of First of Long Island shares are owned by institutional investors. Comparatively, 36.2% of SmartFinancial shares are owned by institutional investors. 4.6% of First of Long Island shares are owned by company insiders. Comparatively, 12.0% of SmartFinancial shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This is a summary of current ratings and target prices for First of Long Island and SmartFinancial, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|First of Long Island||0||2||0||0||2.00|
First of Long Island currently has a consensus target price of $29.50, suggesting a potential upside of 34.40%. SmartFinancial has a consensus target price of $27.00, suggesting a potential upside of 12.27%. Given First of Long Island’s higher possible upside, research analysts clearly believe First of Long Island is more favorable than SmartFinancial.
First of Long Island pays an annual dividend of $0.60 per share and has a dividend yield of 2.7%. SmartFinancial does not pay a dividend. First of Long Island pays out 40.5% of its earnings in the form of a dividend. First of Long Island has raised its dividend for 11 consecutive years.
Valuation and Earnings
This table compares First of Long Island and SmartFinancial’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|First of Long Island||$125.09 million||4.46||$35.12 million||$1.48||14.83|
|SmartFinancial||$57.00 million||5.36||$5.01 million||$1.11||21.67|
First of Long Island has higher revenue and earnings than SmartFinancial. First of Long Island is trading at a lower price-to-earnings ratio than SmartFinancial, indicating that it is currently the more affordable of the two stocks.
First of Long Island beats SmartFinancial on 11 of the 17 factors compared between the two stocks.
About First of Long Island
The First of Long Island Corporation operates as the holding company for The First National Bank of Long Island that provides financial services to privately owned businesses, professionals, consumers, public bodies, and other organizations. Its deposit products include business and small business checking, personal checking products, savings accounts, negotiable order of withdrawal accounts and IOLA, escrow service accounts, rent security accounts, time deposits, holiday club accounts, and individual retirement accounts, as well as personal and non-personal money market and savings products. The company's loan portfolio comprises commercial and industrial loans, small business credit scored loans, residential and commercial mortgage loans, home equity lines of credit, construction loans, and commercial and standby letters of credit, as well as auto, home improvement, and other consumer loans. It also offers account reconciliation services, ACH origination, ATM banking and deposit automation, bank by mail, bill payment, cash management services, collection services, controlled disbursement accounts, foreign currency sales and purchases, healthcare remittance automation, debit cards, lock box services, merchant credit card services, and mobile capture services, as well as mutual funds, annuities, and life insurance. In addition, the company provides night depository services, payroll services, personal money orders, remote deposit, safe deposit boxes, securities transactions, signature guarantee services, travelers checks, investment management and trust services, domestic and international wire transfers, and withholding tax depository services, as well as drive-through, mobile, online, and telephone banking services. It operates through a network of 37 full service branches, 10 commercial banking offices and 2 select service banking centers in New York. The First of Long Island Corporation was founded in 1927 and is based in Glen Head, New York.
SmartFinancial, Inc. operates as the bank holding company for the SmartBank that provides various financial services to individuals and corporate customers in the United States. The company offers various deposit products, including interest bearing and non-interest bearing checking accounts, savings accounts, money market accounts, individual retirement accounts, and certificates of deposit. It also provides commercial real estate loans, consumer real estate loans, construction and land development loans, commercial and industrial loans, including commercial, financial, and agricultural loans, and consumer and other loans, such as direct consumer installment loans, overdrafts and other revolving credit loans, and educational loans. In addition, the company offers Internet and mobile banking services. As of December 31, 2017, it operated through 22 full-service branches located in Tennessee, Alabama, and Florida; and 1 loan production office, 2 mortgage loan production offices, and 2 service centers. SmartFinancial, Inc. is headquartered in Knoxville, Tennessee.
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