Northrim BanCorp (NASDAQ:NRIM) versus Security Bancorp (OTCMKTS:SCYT) Head to Head Survey

Northrim BanCorp (NASDAQ:NRIM) and Security Bancorp (OTCMKTS:SCYT) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.

Dividends

Northrim BanCorp pays an annual dividend of $2.44 per share and has a dividend yield of 4.4%. Security Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 1.8%. Northrim BanCorp pays out 47.6% of its earnings in the form of a dividend. Northrim BanCorp has raised its dividend for 15 consecutive years. Northrim BanCorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

66.0% of Northrim BanCorp shares are held by institutional investors. 4.1% of Northrim BanCorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Northrim BanCorp and Security Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Northrim BanCorp	17.19%	12.50%	1.05%
Security Bancorp	N/A	N/A	N/A

Earnings and Valuation

This table compares Northrim BanCorp and Security Bancorp’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northrim BanCorp	$158.33 million	1.93	$25.39 million	$5.13	10.85
Security Bancorp	N/A	N/A	N/A	N/A	N/A

Northrim BanCorp has higher revenue and earnings than Security Bancorp.

Analyst Ratings

This is a summary of recent ratings and target prices for Northrim BanCorp and Security Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northrim BanCorp	0	0	0	0	N/A
Security Bancorp	0	0	0	0	N/A

Volatility & Risk

Northrim BanCorp has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500. Comparatively, Security Bancorp has a beta of 0.09, indicating that its stock price is 91% less volatile than the S&P 500.

Summary

Northrim BanCorp beats Security Bancorp on 9 of the 10 factors compared between the two stocks.

About Northrim BanCorp

Northrim BanCorp, Inc. operates as the bank holding company for Northrim Bank that provides commercial banking products and services to businesses and professional individuals. It operates through two segments, Community Banking and Home Mortgage Lending. The company offers noninterest-bearing checking accounts and interest-bearing time deposits, checking and savings accounts, individual retirement and money market deposit accounts, certificates of deposit, and business sweep accounts. It also provides short and medium-term commercial loans, commercial credit lines, construction and real estate loans, and consumer loans, as well as short-term working capital. In addition, the company offers other services comprising consumer and business online banking, mobile app, and mobile deposits; and debit and credit cards. Further, it provides mobile web and app banking, consumer online account opening, personal finance, online documents, consumer debit cards, business debit cards, my rewards for consumer debit cards, retail lockbox, card control, corporate purchase cards, integrated payables, home equity advantage access cards, telebanking, and automated teller services. Additionally, the company offers personalized checks at account opening, overdraft protection from a savings account, commercial drive-up banking, automatic transfer and payment, People Pay, external transfer, Bill Pay, wire transfer, direct payroll deposit, electronic tax payment, Automated Clearing House origination and receipt, remote deposit capture, account reconciliation and positive pay, merchant, cash management, annuity, and long-term investment portfolio products and services. It also provides investment advisory, trust, wealth management, factoring, and mortgage services. The company was founded in 1990 and is headquartered in Anchorage, Alaska.

About Security Bancorp

Security Bancorp, Inc. operates as the bank holding company for Security Federal Savings Bank that provides banking products and services to individual and corporate customers in Tennessee. The company's deposit products include checking and savings accounts, and certificates of deposit. It also offers consumer loans; mortgage loans; and commercial loans, including installment loans, lines of credit, and real estate lending. In addition, the company provides financial services, as well as online, mobile, and telephone banking services. Security Bancorp, Inc. was founded in 1960 and is headquartered in McMinnville, Tennessee.