Comparing Eagle Bancorp Montana (NASDAQ:EBMT) and QCR (NASDAQ:QCRH)

Eagle Bancorp Montana (NASDAQ:EBMT) and QCR (NASDAQ:QCRH) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, valuation, analyst recommendations, dividends and profitability.

Profitability

This table compares Eagle Bancorp Montana and QCR’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eagle Bancorp Montana	12.16%	8.29%	0.74%
QCR	21.98%	12.54%	1.44%

Risk and Volatility

Eagle Bancorp Montana has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500. Comparatively, QCR has a beta of 0.75, meaning that its share price is 25% less volatile than the S&P 500.

Institutional & Insider Ownership

35.7% of Eagle Bancorp Montana shares are owned by institutional investors. Comparatively, 70.0% of QCR shares are owned by institutional investors. 5.8% of Eagle Bancorp Montana shares are owned by company insiders. Comparatively, 3.2% of QCR 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.

Dividends

Eagle Bancorp Montana pays an annual dividend of $0.58 per share and has a dividend yield of 2.5%. QCR pays an annual dividend of $0.40 per share and has a dividend yield of 0.4%. Eagle Bancorp Montana pays out 29.3% of its earnings in the form of a dividend. QCR pays out 5.0% 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. Eagle Bancorp Montana has increased its dividend for 14 consecutive years. Eagle Bancorp Montana is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of current ratings for Eagle Bancorp Montana and QCR, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eagle Bancorp Montana	0	3	0	1	2.50
QCR	0	2	4	0	2.67

Eagle Bancorp Montana currently has a consensus target price of $23.50, suggesting a potential upside of 0.82%. QCR has a consensus target price of $101.00, suggesting a potential upside of 3.89%. Given QCR’s stronger consensus rating and higher probable upside, analysts clearly believe QCR is more favorable than Eagle Bancorp Montana.

Valuation and Earnings

This table compares Eagle Bancorp Montana and QCR”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eagle Bancorp Montana	$127.08 million	1.46	$14.84 million	$1.98	11.77
QCR	$603.75 million	2.66	$127.19 million	$7.98	12.18

QCR has higher revenue and earnings than Eagle Bancorp Montana. Eagle Bancorp Montana is trading at a lower price-to-earnings ratio than QCR, indicating that it is currently the more affordable of the two stocks.

Summary

QCR beats Eagle Bancorp Montana on 14 of the 18 factors compared between the two stocks.

About Eagle Bancorp Montana

Eagle Bancorp Montana, Inc. operates as the bank holding company for Opportunity Bank of Montana that provides various retail banking products and services to small businesses and individuals in Montana. It accepts various deposit products, such as checking, savings, money market, and individual retirement accounts, as well as certificates of deposit accounts. The company also provides 1-4 family residential mortgage loans, such as residential mortgages and construction of residential properties; commercial real estate loans, including multi-family dwellings, nonresidential property, commercial construction and development, and farmland loans; and second mortgage/home equity loans. In addition, it offers consumer loans, such as loans secured by collateral other than real estate, such as automobiles, recreational vehicles, and boats; personal loans and lines of credit; commercial business loans consisting of business loans and lines of credit on a secured and unsecured basis; construction loans; agricultural loans; and mortgage loan services. The company operates full-service branches and automated teller machines. Eagle Bancorp Montana, Inc. was founded in 1922 and is headquartered in Helena, Montana.

About QCR

QCR Holdings, Inc., a multi-bank holding company, provides commercial and consumer banking, and trust and asset management services. The company’s deposit products include noninterest-bearing demand, interest-bearing demand, time, and brokered deposits. It also provides various commercial and retail lending/leasing, and investment services to corporations, partnerships, individuals, and government agencies. The company’s loan portfolio comprises loans to small and mid-sized businesses; business loans, including lines of credit for working capital and operational purposes; term loans for the acquisition of facilities, equipment, and other purposes; commercial and residential real estate loans; and installment and other consumer loans, such as home improvement, home equity, motor vehicle, and signature loans, as well as small personal credit lines. In addition, it engages in leasing of machinery and equipment to commercial and industrial businesses under direct financing lease contracts; and issuance of trust preferred securities. QCR Holdings, Inc. was incorporated in 1993 and is headquartered in Moline, Illinois.