Comparing Synovus Financial (NYSE:SNV) & Solera National Bancorp (OTCMKTS:SLRK)

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

Valuation and Earnings

This table compares Solera National Bancorp and Synovus Financial”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Solera National Bancorp	$75.25 million	0.54	$18.07 million	$4.20	2.24
Synovus Financial	$1.98 billion	3.28	$482.46 million	$3.05	15.12

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

Volatility & Risk

Solera National Bancorp has a beta of 0.51, meaning that its share price is 49% less volatile than the S&P 500. Comparatively, Synovus Financial has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500.

Institutional and Insider Ownership

83.8% of Synovus Financial shares are held by institutional investors. 17.4% of Solera National Bancorp shares are held by company insiders. Comparatively, 0.8% of Synovus Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Solera National Bancorp and Synovus Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solera National Bancorp	0	0	0	0	0.00
Synovus Financial	0	6	12	0	2.67

Synovus Financial has a consensus target price of $58.67, suggesting a potential upside of 27.20%. Given Synovus Financial’s stronger consensus rating and higher possible upside, analysts clearly believe Synovus Financial is more favorable than Solera National Bancorp.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Solera National Bancorp	24.01%	N/A	N/A
Synovus Financial	14.05%	14.70%	1.14%

Summary

Synovus Financial beats Solera National Bancorp on 11 of the 14 factors compared between the two stocks.

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.

About Synovus Financial

Synovus Financial Corp. operates as the bank holding company for Synovus Bank that provides commercial and consumer banking products and services. It operates through four segments: Community Banking, Wholesale Banking, Consumer Banking, and Financial Management Services. The company's commercial banking services include treasury and asset management, capital market, and institutional trust services, as well as commercial, financial, and real estate lending services. Its consumer banking services comprise accepting customary types of demand and savings deposits accounts; mortgage, installment, and other consumer loans; investment and brokerage services; safe deposit services; automated banking services; automated fund transfers; internet-based banking services; and bank credit and debit card services, including Visa and MasterCard services. The company also offers various other financial services, including portfolio management for fixed-income securities, investment banking, execution of securities transactions as a broker/dealer, trust management, and financial planning services, as well as provides individual investment advice on equity and other securities. The company was founded in 1888 and is headquartered in Columbus, Georgia.