Critical Review of Guaranty Bancshares (NASDAQ:GNTY) vs. Evans Bancorp (NYSE:EVBN)


Bancshares Guarantee (NASDAQ: GNTYGet a rating) and Evans Bancorp (NYSE: EVBNGet a rating) are both small cap finance companies, but which stock is superior? We’ll compare the two companies based on institutional ownership strength, risk, earnings, dividends, valuation, profitability, and analyst recommendations.

Analyst Recommendations

This is a summary of the current ratings and recommendations for Guaranty Bancshares and Evans Bancorp, as provided by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Bancshares Guarantee 0 0 2 0 3.00
Evans Bancorp 0 0 0 0 N / A

Guaranty Bancshares currently has a consensus target price of $43.50, suggesting a potential upside of 20.77%. Given the higher possible upside of Guaranty Bancshares, stock analysts clearly believe that Guaranty Bancshares is more favorable than Evans Bancorp.

Profitability

This table compares the net margins, return on equity and return on assets of Guaranty Bancshares and Evans Bancorp.

Net margins Return on equity return on assets
Bancshares Guarantee 31.20% 13.59% 1.34%
Evans Bancorp 24.98% 13.53% 1.09%

Dividends

Guaranty Bancshares pays an annual dividend of $0.88 per share and has a dividend yield of 2.4%. Evans Bancorp pays an annual dividend of $1.24 per share and has a dividend yield of 3.6%. Guaranty Bancshares pays 27.2% of its earnings as a dividend. Evans Bancorp pays 28.6% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Guaranty Bancshares has increased its dividend for 5 consecutive years and Evans Bancorp has increased its dividend for 12 consecutive years. Evans Bancorp is clearly the better dividend-paying stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

22.2% of Guaranty Bancshares shares are held by institutional investors. By comparison, 61.8% of Evans Bancorp’s shares are held by institutional investors. 26.6% of Guaranty Bancshares shares are held by insiders. By comparison, 6.3% of Evans Bancorp’s shares are held by insiders. Strong institutional ownership indicates that large money managers, endowments, and hedge funds believe a company is poised for long-term growth.

Valuation and benefits

This chart compares the gross earnings, earnings per share (EPS), and valuation of Guaranty Bancshares and Evans Bancorp.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Bancshares Guarantee $127.13 million 3.42 $39.81 million $3.24 11.12
Evans Bancorp $96.43 million 1.95 $24.04 million $4.34 7.84

Guaranty Bancshares has higher revenue and earnings than Evans Bancorp. Evans Bancorp trades at a lower price-to-earnings ratio than Guaranty Bancshares, indicating that it is currently the more affordable of the two stocks.

Volatility and risk

Guaranty Bancshares has a beta of 0.47, which means its stock price is 53% less volatile than the S&P 500. In comparison, Evans Bancorp has a beta of 0.98, which means its stock price is 2% less volatile than the S&P 500.

Summary

Guaranty Bancshares beats Evans Bancorp on 11 of the 16 factors compared between the two stocks.

Guaranty Bancshares Company Profile (Get a rating)

Guaranty Bancshares, Inc. operates as a bank holding company for Guaranty Bank & Trust, NA which provides a range of commercial and consumer banking products and services for small and medium businesses, professionals and individuals. The company offers checking and savings, money market and business accounts, as well as certificates of deposit; and commercial and industrial, construction and development, 1-4 family residential, commercial real estate, farm and farmland, multi-family residential and consumer loans. It also provides trustee, custodial and escrow, investment management, pension plan, ATM, night deposit, direct deposit and cashier’s check services, as well as online banking services. , mobile and telephone; debit cards; letter of credit; and cash management services, including wire transfers, positive payments, remote deposit capture and automated clearinghouse services. As of December 31, 2021, it operated 32 full-service banking locations in East Texas, Central Texas, Dallas/Fort Worth Metropolitan Statistical Area (MSA), and Houston MSA. The company was founded in 1913 and is headquartered in Addison, Texas.

Evans Bancorp Company Profile (Get a rating)

Evans Bancorp, Inc. operates primarily as a financial holding company for Evans Bank, NA which provides a range of banking products and services to consumer and business customers in Western New York and the Finger Lakes region of the state from New York. It operates in two segments, banking business and insurance agency business. The Company offers deposit products, which include checking accounts and negotiable withdrawal orders, savings accounts and certificates of deposit. It also offers residential mortgages; commercial and multi-family mortgages and commercial construction loans; home equity, such as home equity lines of credit and second mortgages; commercial and industrial loans including term loans and lines of credit; consumer loans, including direct auto loans, recreational vehicles, boats, home improvement and personal loans; other loans comprised of cash reserves, overdrafts and loan clearing accounts; and installment loans. In addition, the company sells various premium-based insurance policies, including business and personal insurance, employee benefits, bonding, risk management, life insurance, disability and care. long-term, as well as claims services to various insurance companies. ; and non-deposit investment products, such as annuities and mutual funds. It operates through a total of 21 full-service banking offices in Erie County, Niagara County, Monroe County and Chautauqua County, New York. Evans Bancorp, Inc. was founded in 1920 and is based in Williamsville, New York.



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