Analyzing Shore Community Bank (OTCMKTS:SHRC) and SR Bancorp (NASDAQ:SRBK)

SR Bancorp (NASDAQ:SRBK) and Shore Community Bank (OTCMKTS:SHRC) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, risk, profitability and valuation.

Profitability

This table compares SR Bancorp and Shore Community Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SR Bancorp	6.39%	1.41%	0.24%
Shore Community Bank	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current recommendations and price targets for SR Bancorp and Shore Community Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SR Bancorp	0	1	1	0	2.50
Shore Community Bank	0	0	0	0	0.00

SR Bancorp currently has a consensus target price of $19.00, indicating a potential upside of 0.21%. Given SR Bancorp’s stronger consensus rating and higher possible upside, equities research analysts clearly believe SR Bancorp is more favorable than Shore Community Bank.

Institutional & Insider Ownership

24.7% of SR Bancorp shares are owned by institutional investors. 7.8% of SR Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares SR Bancorp and Shore Community Bank”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SR Bancorp	$34.23 million	4.49	$5.14 million	$0.42	45.14
Shore Community Bank	N/A	N/A	N/A	N/A	N/A

SR Bancorp has higher revenue and earnings than Shore Community Bank.

Summary

SR Bancorp beats Shore Community Bank on 9 of the 9 factors compared between the two stocks.

About SR Bancorp

SR Bancorp, Inc. operates as the holding company for Somerset Regal Bank that provides customary retail and commercial banking services to individuals, businesses, and local municipalities in the communities of Somerset, Middlesex, Hunterdon, and Essex counties in New Jersey. It offers deposit instruments, including noninterest-bearing demand deposits, interest-bearing demand accounts, savings accounts, money market accounts, and certificates of deposit. The company also provides loans comprising one- to four family-residential mortgage loans, home equity loans and lines of credit, unsecured personal loans, and rehabilitation loans; and bill payment services. In addition, it is involved in the investment activities. The company was founded in 1887 and is headquartered in Bound Brook, New Jersey.

About Shore Community Bank

Shore Community Bank, a state chartered bank, provides banking products and services to businesses and individuals in Ocean County, New Jersey. The company's deposit products include checking accounts, savings accounts, certificates of deposit, individual retirement accounts, money market accounts, visa/mastercard merchant deposit accounts, and payroll/direct deposit accounts. Its loan portfolio comprises personal, home equity, term, and demand loans; lines of credit; letters of credit; commercial mortgages; and construction lending. The company also offers direct deposit and electronic transfer, wire transfer, ACH origination, night depository, tenant rent security, signature guarantee, remote deposit, notary, and automated asset management services; safe deposit boxes, escrow accounts, and debit cards, as well as online and telephone banking services. As of April 28, 2016, it operated five banking offices located in Toms River, Jackson, and Manahawkin, New Jersey. Shore Community Bank was incorporated in 1996 and is headquartered in Toms River, New Jersey.