Critical Review: Solera National Bancorp (OTCMKTS:SLRK) and Capital One Financial (NYSE:COF)


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

Analyst Recommendations

This is a breakdown of recent ratings for Solera National Bancorp and Capital One Financial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Solera National Bancorp 0 0 0 0 N/A
Capital One Financial 0 2 15 0 2.88

Capital One Financial has a consensus target price of $102.59, indicating a potential downside of 8.46%. Given Capital One Financial’s higher probable upside, analysts clearly believe Capital One Financial is more favorable than Solera National Bancorp.

Profitability

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

Net Margins Return on Equity Return on Assets
Solera National Bancorp 29.14% N/A N/A
Capital One Financial 4.08% 3.05% 0.43%

Volatility & Risk

Solera National Bancorp has a beta of 0.69, indicating that its share price is 31% less volatile than the S&P 500. Comparatively, Capital One Financial has a beta of 1.72, indicating that its share price is 72% more volatile than the S&P 500.

Valuation and Earnings

This table compares Solera National Bancorp and Capital One Financial’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Solera National Bancorp $11.49 million 4.28 $3.56 million N/A N/A
Capital One Financial $33.77 billion 1.52 $5.55 billion $12.09 9.27

Capital One Financial has higher revenue and earnings than Solera National Bancorp.

Insider and Institutional Ownership

1.3% of Solera National Bancorp shares are owned by institutional investors. Comparatively, 89.6% of Capital One Financial shares are owned by institutional investors. 17.4% of Solera National Bancorp shares are owned by company insiders. Comparatively, 1.5% of Capital One Financial shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Capital One Financial beats Solera National Bancorp on 9 of the 12 factors compared between the two stocks.

Solera National Bancorp Company Profile

Solera National Bancorp, Inc. operates as the bank holding company for Solera National Bank that provides commercial and consumer banking services to small and medium-sized businesses, licensed professionals, and individuals in the United States. The company offers deposit products, including checking and savings accounts, money market accounts, time deposits, and certificates of deposits; and business loan products, such as 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, fraud, business debit card, and cash management services. The company was founded in 2006 and is headquartered in Lakewood, Colorado.

Capital One Financial Company Profile

Capital One Financial Corporation operates as the financial services holding company for the Capital One Bank (USA), National Association; and Capital One, National Association, which provides various financial products and services in the United States, the United Kingdom, and Canada. It operates through three segments: Credit Card, Consumer Banking, and Commercial Banking. The company offers non-interest-bearing and interest-bearing deposits, such as checking accounts, money market deposit accounts, negotiable order of withdrawals, savings deposits, and time deposits. It also provides credit card loans; auto, home, and retail banking loans; and commercial and multifamily real estate, commercial and industrial, and small-ticket commercial real estate loans. In addition, the company offers credit and debit card products; online direct banking services; and treasury management and depository services. It serves consumers, small businesses, and commercial clients through the Internet and mobile banking, as well as through Cafés, ATMs, and branches located in New York, Louisiana, Texas, Maryland, Virginia, New Jersey, and the District of Columbia. Capital One Financial Corporation was founded in 1988 and is headquartered in McLean, Virginia.

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