Surrey Bancorp (OTCMKTS:SRYB – Get Free Report) and Enterprise Bancorp (NASDAQ:EBTC – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, risk and valuation.
Earnings and Valuation
This table compares Surrey Bancorp and Enterprise Bancorp’s 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 |
| Enterprise Bancorp | $179.38 million | 1.93 | $42.72 million | $3.66 | 7.72 |
Enterprise Bancorp has higher revenue and earnings than Surrey Bancorp. Enterprise Bancorp is trading at a lower price-to-earnings ratio than Surrey Bancorp, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Profitability
This table compares Surrey Bancorp and Enterprise Bancorp’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 |
| Enterprise Bancorp | 22.36% | 15.25% | 1.00% |
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Surrey Bancorp and Enterprise Bancorp, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Surrey Bancorp | 0 | 0 | 0 | 0 | N/A |
| Enterprise Bancorp | 0 | 0 | 0 | 0 | N/A |
Insider & Institutional Ownership
3.7% of Surrey Bancorp shares are held by institutional investors. Comparatively, 29.3% of Enterprise Bancorp shares are held by institutional investors. 33.7% of Surrey Bancorp shares are held by company insiders. Comparatively, 15.7% of Enterprise Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Dividends
Surrey Bancorp pays an annual dividend of $0.48 per share and has a dividend yield of 2.9%. Enterprise Bancorp pays an annual dividend of $0.92 per share and has a dividend yield of 3.3%. Surrey Bancorp pays out 31.6% of its earnings in the form of a dividend. Enterprise Bancorp pays out 25.1% 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. Enterprise Bancorp has increased its dividend for 17 consecutive years. Enterprise Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Enterprise Bancorp beats Surrey Bancorp on 9 of the 14 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 Enterprise Bancorp
Enterprise Bancorp, Inc. operates as the holding company of Enterprise Bank and Trust Company that provides commercial banking products and services. It offers commercial and retail deposit products, including checking accounts, limited-transactional savings and money market accounts, commercial sweep products, and term certificates of deposit. The company also provides commercial real estate, commercial and industrial, commercial construction, residential, and consumer loans, as well as home equity loans and lines of credit. In addition, the company offers cash management services; wealth advisory and management services that include customized investment management and trust services to individuals, family groups, commercial businesses, trusts, foundations, non-profit organizations, and endowments; brokerage and management services to individual investors; insurance services; and voice, online, and mobile banking services. The company was founded in 1989 and is headquartered in Lowell, Massachusetts.
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