Contrasting West Bancorporation (NASDAQ:WTBA) & Carver Bancorp (NASDAQ:CARV)

West Bancorporation (NASDAQ:WTBA) and Carver Bancorp (NASDAQ:CARV) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.

Risk & Volatility

West Bancorporation has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500. Comparatively, Carver Bancorp has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500.

Profitability

This table compares West Bancorporation and Carver Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
West Bancorporation	16.04%	13.68%	0.80%
Carver Bancorp	-33.51%	-117.36%	-1.74%

Institutional & Insider Ownership

44.3% of West Bancorporation shares are owned by institutional investors. Comparatively, 18.2% of Carver Bancorp shares are owned by institutional investors. 4.6% of West Bancorporation shares are owned by company insiders. Comparatively, 1.3% of Carver Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares West Bancorporation and Carver Bancorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
West Bancorporation	$87.39 million	4.07	$24.05 million	$1.90	11.05
Carver Bancorp	$37.37 million	0.38	-$13.74 million	($2.44)	-1.14

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

Analyst Ratings

This is a summary of recent recommendations and price targets for West Bancorporation and Carver Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
West Bancorporation	0	3	0	0	2.00
Carver Bancorp	1	0	0	0	1.00

West Bancorporation presently has a consensus target price of $20.50, suggesting a potential downside of 2.33%. Given West Bancorporation’s stronger consensus rating and higher possible upside, research analysts clearly believe West Bancorporation is more favorable than Carver Bancorp.

Summary

West Bancorporation beats Carver Bancorp on 12 of the 13 factors compared between the two stocks.

About West Bancorporation

West Bancorporation, Inc. operates as the financial holding company provides community banking and trust services to individuals and small- to medium-sized businesses in the United States. It offers deposit services, including checking, savings, and money market accounts, as well as time certificates of deposit. The company also provides loan products comprising commercial real estate loans, construction and land development loans, commercial lines of credit, and commercial term loans; consumer loans, including loans extended to individuals for household, family, and other personal expenditures not secured by real estate; and 1-4 family residential mortgages and home equity loans. In addition, it offers online and mobile banking, treasury management services including cash management, client-generated automated clearing house transactions, remote deposit, and fraud protection services; merchant credit card processing and corporate credit cards; and administration of estates, conservatorships, personal trusts, and agency accounts. The company was founded in 1893 and is headquartered in West Des Moines, Iowa.

About Carver Bancorp

Carver Bancorp, Inc. operates as the holding company for Carver Federal Savings Bank that provides consumer and commercial banking services for consumers, businesses, non-profit organizations, and governmental and quasi-governmental agencies primarily in New York. It accepts various deposit products, including demand, savings, and time deposits; passbook and statement accounts, and certificates of deposit; and individual retirement accounts. The company provides lending products, such as one-to-four family residential, multifamily real estate, and commercial real estate lending; and construction, business and small business administration, and consumer and other loans. In addition, it offers other consumer and commercial banking products and services, including debit cards, online account opening and banking, online bill pay, and telephone banking, as well as check cashing, wire transfer, bill payment, reloadable prepaid card, and money order services. Carver Bancorp, Inc. was founded in 1948 and is headquartered in New York, New York.