Critical Comparison: Hawthorn Bancshares (NASDAQ:HWBK) vs. SouthCrest Financial Group (NASDAQ:SCSG)

Hawthorn Bancshares (NASDAQ:HWBK) and SouthCrest Financial Group (OTCMKTS:SCSG) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, institutional ownership, earnings, profitability, dividends, valuation and analyst recommendations.

Volatility and Risk

Hawthorn Bancshares has a beta of 0.22, meaning that its stock price is 78% less volatile than the S&P 500. Comparatively, SouthCrest Financial Group has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500.

Valuation and Earnings

This table compares Hawthorn Bancshares and SouthCrest Financial Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hawthorn Bancshares $67.12 million 2.31 $10.71 million N/A N/A
SouthCrest Financial Group $24.75 million 2.27 $13.66 million N/A N/A

SouthCrest Financial Group has lower revenue, but higher earnings than Hawthorn Bancshares.

Dividends

Hawthorn Bancshares pays an annual dividend of $0.48 per share and has a dividend yield of 1.9%. SouthCrest Financial Group pays an annual dividend of $0.20 per share and has a dividend yield of 2.2%.

Institutional & Insider Ownership

34.1% of Hawthorn Bancshares shares are owned by institutional investors. Comparatively, 8.7% of SouthCrest Financial Group shares are owned by institutional investors. 10.6% of Hawthorn Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Hawthorn Bancshares and SouthCrest Financial Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hawthorn Bancshares 0 0 0 0 N/A
SouthCrest Financial Group 0 0 1 0 3.00

Profitability

This table compares Hawthorn Bancshares and SouthCrest Financial Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hawthorn Bancshares 20.29% 12.38% 0.86%
SouthCrest Financial Group N/A N/A N/A

Summary

Hawthorn Bancshares beats SouthCrest Financial Group on 7 of the 11 factors compared between the two stocks.

Hawthorn Bancshares Company Profile

Hawthorn Bancshares, Inc. operates as the bank holding company for Hawthorn Bank that provides various banking services in Missouri. The company offers checking and savings accounts, and certificates of deposit; and a range of lending services, including commercial and industrial, single payment personal, installment, and commercial and residential real estate loans. It also provides trust services, Internet banking services, brokerage services, safety deposit boxes, and debit cards. The company operates 23 banking offices. Hawthorn Bancshares, Inc. was founded in 1865 and is based in Jefferson City, Missouri.

SouthCrest Financial Group Company Profile

SouthCrest Financial Group, Inc. operates as the bank holding company for SouthCrest Bank, N.A. that provides banking services. The company accepts checking, savings, and money market accounts; and certificates of deposit. Its loan products include personal loans for cars, boats, recreational vehicles, and other purchases; home equity lines of credit; loans on investment properties; owner occupied real estate, construction and development, equipment and inventory, practice, and Georgia entertainment tax credit financing; construction to permanent, investment real estate, and acquisition and development loans; and working capital and lines of credit. The company also offers credit and debit cards; remote deposit capture, positive pay, ACH, online wires, merchant, business payroll, and reorder checks services; and online banking, online bill pay, mobile banking and deposit, telephone banking, and ATM services. It serves retail, private, entrepreneurial, high-net-worth, and commercial customers. As of April 26, 2018, the company operated through 9 branches in Georgia. SouthCrest Financial Group, Inc. was founded in 1910 and is headquartered in Atlanta, Georgia.

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