Solera National Bancorp (OTCMKTS:SLRK) vs. Bancorp (NASDAQ:TBBK) Financial Review

Bancorp (NASDAQ:TBBK) and Solera National Bancorp (OTCMKTS:SLRK) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.

Institutional & Insider Ownership

96.2% of Bancorp shares are held by institutional investors. 5.2% of Bancorp shares are held by insiders. Comparatively, 17.4% of Solera National Bancorp shares are held 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 breakdown of current recommendations and price targets for Bancorp and Solera National Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bancorp	0	0	3	0	3.00
Solera National Bancorp	0	0	0	0	0.00

Bancorp presently has a consensus target price of $55.00, suggesting a potential downside of 5.87%. Given Bancorp’s stronger consensus rating and higher possible upside, equities analysts plainly believe Bancorp is more favorable than Solera National Bancorp.

Risk & Volatility

Bancorp has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500. Comparatively, Solera National Bancorp has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500.

Earnings and Valuation

This table compares Bancorp and Solera National Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bancorp	$621.60 million	4.51	$192.30 million	$3.96	14.76
Solera National Bancorp	$65.19 million	0.65	$16.66 million	$3.78	2.59

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

Profitability

This table compares Bancorp and Solera National Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bancorp	30.97%	26.63%	2.69%
Solera National Bancorp	21.92%	N/A	N/A

Summary

Bancorp beats Solera National Bancorp on 13 of the 14 factors compared between the two stocks.

About Bancorp

The Bancorp, Inc. operates as the bank holding company for The Bancorp Bank, National Association that provides banking products and services in the United States. It offers a range of deposit products and services, including checking, savings, time, money market, and commercial accounts; overdrafts; and certificates of deposit. The company also provides securities-backed lines of credit and insurance policy cash value-backed lines of credit; investor advisor financing; lease financing for commercial and government vehicle fleets, including trucks and other special purpose vehicles; commercial real estate bridge loans; and small business administration loans. In addition, it offers bill and other payment services; debit and prepaid card issuing services; card and bill payment, and automated clearing house processing services; and internet banking services. The company was incorporated in 1999 and is headquartered in Wilmington, Delaware.

About Solera National Bancorp

Solera National Bancorp, Inc. operates as the bank holding company for Solera National Bank that provides commercial and consumer banking services in the United States. The company offers checking and savings accounts, money market accounts, time and demand deposits, and individual retirement accounts (IRA), as well as certificates of deposit; and real estate secured loans, construction loans, small business administration loans, business lines of credit, and equipment financing. It also provides online banking, account analysis, combined account analysis, commercial sweep, remote deposit, ACH origination, payroll direct deposit, merchant, business debit card, and cash management services. The company was incorporated in 2006 and is based in Lakewood, Colorado.