Financial Comparison: USCB Financial (NASDAQ:USCB) versus QCR (NASDAQ:QCRH)

QCR (NASDAQ:QCRH) and USCB Financial (NASDAQ:USCB) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.

Valuation & Earnings

This table compares QCR and USCB Financial”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
QCR	$350.01 million	3.93	$113.56 million	$6.89	11.84
USCB Financial	$108.42 million	3.44	$16.55 million	$1.03	18.23

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

Risk and Volatility

QCR has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, USCB Financial has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500.

Profitability

This table compares QCR and USCB Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
QCR	19.25%	12.92%	1.36%
USCB Financial	15.12%	10.55%	0.86%

Dividends

QCR pays an annual dividend of $0.24 per share and has a dividend yield of 0.3%. USCB Financial pays an annual dividend of $0.20 per share and has a dividend yield of 1.1%. QCR pays out 3.5% of its earnings in the form of a dividend. USCB Financial pays out 19.4% 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.

Institutional & Insider Ownership

70.0% of QCR shares are owned by institutional investors. Comparatively, 61.3% of USCB Financial shares are owned by institutional investors. 3.7% of QCR shares are owned by insiders. Comparatively, 48.5% of USCB Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and target prices for QCR and USCB Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
QCR	0	0	3	0	3.00
USCB Financial	0	1	2	1	3.00

QCR currently has a consensus price target of $76.00, indicating a potential downside of 6.81%. USCB Financial has a consensus price target of $16.38, indicating a potential downside of 12.81%. Given QCR’s higher possible upside, equities research analysts clearly believe QCR is more favorable than USCB Financial.

Summary

QCR beats USCB Financial on 12 of the 16 factors compared between the two stocks.

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.

About USCB Financial

USCB Financial Holdings, Inc. operates as the bank holding company for U.S. Century Bank that engages in the provision of various personal and business banking products and services in the United States. It accepts various deposit products, including commercial and consumer checking, money market deposit, savings, and time deposit accounts, as well as certificates of deposit. It also offers loan products, such as small business administration loans, yacht financing, residential and commercial real estate loans; commercial and industrial loans; foreign bank loans; and secured and unsecured consumer loans comprising personal loans, overdrafts, and deposit account collateralized loans. The company also offers lockbox, treasury, commercial payments, cash management, and online banking services, as well as provides title insurance policies for real estate transactions. USCB Financial Holdings, Inc. was founded in 2002 and is headquartered in Miami, Florida.