Financial Analysis: Lakeland Bancorp (NASDAQ:LBAI) and Truxton (OTCMKTS:TRUX)

Lakeland Bancorp (NASDAQ:LBAI) and Truxton (OTCMKTS:TRUX) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, earnings, profitability, dividends, analyst recommendations and institutional ownership.

Profitability

This table compares Lakeland Bancorp and Truxton’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lakeland Bancorp 30.21% 10.88% 1.09%
Truxton 35.88% N/A N/A

Analyst Recommendations

This is a summary of current recommendations and price targets for Lakeland Bancorp and Truxton, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lakeland Bancorp 0 0 1 1 3.50
Truxton 0 0 0 0 N/A

Lakeland Bancorp currently has a consensus price target of $23.00, indicating a potential upside of 41.28%. Given Lakeland Bancorp’s higher possible upside, research analysts plainly believe Lakeland Bancorp is more favorable than Truxton.

Earnings and Valuation

This table compares Lakeland Bancorp and Truxton’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lakeland Bancorp $275.95 million 2.99 $57.52 million $1.13 14.41
Truxton $33.07 million 5.31 $11.15 million N/A N/A

Lakeland Bancorp has higher revenue and earnings than Truxton.

Dividends

Lakeland Bancorp pays an annual dividend of $0.54 per share and has a dividend yield of 3.3%. Truxton pays an annual dividend of $1.20 per share and has a dividend yield of 2.0%. Lakeland Bancorp pays out 47.8% of its earnings in the form of a dividend. Lakeland Bancorp has raised its dividend for 1 consecutive years. Lakeland Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

59.4% of Lakeland Bancorp shares are held by institutional investors. 4.2% of Lakeland Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Lakeland Bancorp has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500. Comparatively, Truxton has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500.

Summary

Lakeland Bancorp beats Truxton on 12 of the 16 factors compared between the two stocks.

About Lakeland Bancorp

Lakeland Bancorp, Inc. is a bank holding company, which engages in the provision of lending, depository, and related financial services. Its consumer banking services include checking accounts, savings accounts, interest-bearing checking accounts, money market accounts, certificates of deposit, internet banking, secured and unsecured loans, consumer installment loans, mortgage loans, and safe deposit services. The company was founded in March 1989 and is headquartered in Oak Ridge, NJ.

About Truxton

Truxton Corp. is a bank holding company, which engages in the provision of private banking and business banking services. It operates through the following segments: Commercial Loans, Commercial Real Estate Loans, Residential Real Estate Loans, Construction and Land Development Loans, and Consumer Loans. The Commercial Loans segment includes loans for commercial, industrial or agricultural purposes to business enterprises that are not secured by real estate. The Commercial Real Estate Loans segment refers to the loans secured by non-residential real estate and improvements thereon. The Residential Real Estate Loans segment comprises the loans secured by residential real estate, including single-family and multi-family dwellings. The Construction and Land Development Loans segment consists of loans that finance the process of improving properties preparatory to erecting new structures or the on-site construction of industrial, commercial, residential or farm buildings. The Consumer Loans segment is composed of the loans to individuals for household, family, and other personal expenditures that are not secured by real estate. The company was founded in 2004 and is headquartered in Na

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