Colony Bankcorp (NASDAQ:CBAN) & Surrey Bancorp (OTCMKTS:SRYB) Financial Comparison

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

Dividends

Surrey Bancorp pays an annual dividend of $0.48 per share and has a dividend yield of 2.9%. Colony Bankcorp pays an annual dividend of $0.45 per share and has a dividend yield of 2.9%. Surrey Bancorp pays out 31.6% of its earnings in the form of a dividend. Colony Bankcorp pays out 36.0% 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.

Earnings and Valuation

This table compares Surrey Bancorp and Colony Bankcorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Surrey Bancorp	$16.20 million	4.23	$5.10 million	$1.52	10.99
Colony Bankcorp	$113.57 million	2.37	$21.75 million	$1.25	12.26

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Surrey Bancorp and Colony Bankcorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Surrey Bancorp	0	0	0	0	N/A
Colony Bankcorp	0	0	0	0	N/A

Profitability

This table compares Surrey Bancorp and Colony Bankcorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Surrey Bancorp	37.97%	N/A	N/A
Colony Bankcorp	13.03%	9.09%	0.76%

Institutional and Insider Ownership

3.7% of Surrey Bancorp shares are held by institutional investors. Comparatively, 50.4% of Colony Bankcorp shares are held by institutional investors. 33.7% of Surrey Bancorp shares are held by company insiders. Comparatively, 6.6% of Colony Bankcorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Surrey Bancorp has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500. Comparatively, Colony Bankcorp has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500.

Summary

Colony Bankcorp beats Surrey Bancorp on 7 of the 13 factors compared between the two stocks.

About Surrey Bancorp

Surrey BanCorp engages in the provision of banking solutions through its subsidiaries, Surrey Bank & Trust . It offers checking accounts, savings, deposit services, mortgages, real estate loans, commercial credit products, business checking, and electronic banking. The company was founded on May 1, 2003 and is headquartered in Mount Airy, NC.

About Colony Bankcorp

Colony Bankcorp, Inc. operates as the bank holding company for Colony Bank that provides various banking products and services to commercial and consumer customers. The company offers deposit products, including demand, savings, and time deposits. It also provides loans to small and medium-sized businesses; residential and commercial construction, and land development loans; commercial real estate loans; commercial loans; agri-business and production loans; residential mortgage loans; home equity loans; and consumer loans. In addition, the company offers internet banking services, electronic bill payment services, safe deposit box rentals, telephone banking, credit and debit card services, and remote depository products, as well as access to a network of ATMs. The company was founded in 1975 and is headquartered in Fitzgerald, Georgia.