Reviewing GrandSouth Bancorporation (OTCMKTS:GRRB) and Flagstar Financial (NYSE:FLG)

GrandSouth Bancorporation (OTCMKTS:GRRB) and Flagstar Financial (NYSE:FLG) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, analyst recommendations, dividends, earnings and risk.

Institutional & Insider Ownership

67.9% of Flagstar Financial shares are held by institutional investors. 33.3% of GrandSouth Bancorporation shares are held by insiders. Comparatively, 6.4% of Flagstar Financial shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares GrandSouth Bancorporation and Flagstar Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GrandSouth Bancorporation	N/A	N/A	N/A
Flagstar Financial	-18.40%	-11.35%	-0.78%

Earnings and Valuation

This table compares GrandSouth Bancorporation and Flagstar Financial”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GrandSouth Bancorporation	$58.82 million	N/A	$16.11 million	N/A	N/A
Flagstar Financial	$2.93 billion	1.31	-$79.00 million	($4.36)	-2.11

GrandSouth Bancorporation has higher earnings, but lower revenue than Flagstar Financial.

Analyst Ratings

This is a breakdown of recent ratings and price targets for GrandSouth Bancorporation and Flagstar Financial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GrandSouth Bancorporation	0	0	0	0	0.00
Flagstar Financial	0	3	0	0	2.00

Flagstar Financial has a consensus price target of $11.50, indicating a potential upside of 24.73%. Given Flagstar Financial’s stronger consensus rating and higher probable upside, analysts clearly believe Flagstar Financial is more favorable than GrandSouth Bancorporation.

Summary

GrandSouth Bancorporation beats Flagstar Financial on 5 of the 9 factors compared between the two stocks.

About GrandSouth Bancorporation

GrandSouth Bancorporation operates as the bank holding company for GrandSouth Bank that provides banking services to individuals and businesses. It accepts checking accounts, savings accounts, money market accounts, various term certificates of deposit, and individual retirement accounts. The company also offers one-to-four family residential, commercial real estate, home equity and lines of credit, residential construction and other construction and land, and commercial loans; and consumer loans comprising loans secured by personal property, such as automobiles, marketable securities, and boats and motorcycles, as well as unsecured consumer debt. In addition, it invests in investment securities, as well as provides specialty floor plan lending to small auto dealerships under the CarBucks trade name. The company operates through eight branches across South Carolina. GrandSouth Bancorporation was founded in 1998 and is based in Greenville, South Carolina.

About Flagstar Financial

Flagstar Financial, Inc. operates as the bank holding company for Flagstar Bank, N.A. that provides banking products and services in the United States. The company’s deposit products include interest-bearing checking and money market, savings, non-interest-bearing, and retirement accounts, as well as certificates of deposit. Its loan products comprise multi-family loans; commercial real estate loans; acquisition, development, and construction loans; commercial and industrial loans; one-to-four family loans; specialty finance loans and leases; warehouse loans; and other loans, such as home equity lines of credit, boat and recreational vehicle indirect lending, point of sale consumer loans, and other consumer loans, including overdraft loans. The company offers cash management products; non-deposit investment and insurance products; and online banking, mobile banking, and bank-by-phone services. It primarily serves individuals, small and mid-size businesses, and professional associations. The company was formerly known as New York Community Bancorp, Inc. and changed its name to Flagstar Financial, Inc. in October 2024. Flagstar Financial, Inc. was founded in 1859 and is headquartered in Hicksville, New York.