Head-To-Head Survey: ServisFirst Bancshares (NYSE:SFBS) versus Carver Bancorp (NASDAQ:CARV)

Carver Bancorp (NASDAQ:CARV) and ServisFirst Bancshares (NYSE:SFBS) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, risk, dividends, valuation and profitability.

Risk and Volatility

Carver Bancorp has a beta of 1.62, meaning that its share price is 62% more volatile than the S&P 500. Comparatively, ServisFirst Bancshares has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500.

Institutional & Insider Ownership

18.2% of Carver Bancorp shares are owned by institutional investors. Comparatively, 67.3% of ServisFirst Bancshares shares are owned by institutional investors. 1.3% of Carver Bancorp shares are owned by insiders. Comparatively, 6.7% of ServisFirst Bancshares shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Carver Bancorp and ServisFirst Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Carver Bancorp	-34.89%	-171.55%	-1.82%
ServisFirst Bancshares	26.95%	16.36%	1.61%

Valuation & Earnings

This table compares Carver Bancorp and ServisFirst Bancshares”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Carver Bancorp	$22.74 million	0.38	-$13.74 million	($1.72)	-0.87
ServisFirst Bancshares	$555.79 million	7.20	$276.60 million	$5.06	14.48

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

Analyst Ratings

This is a summary of recent ratings and target prices for Carver Bancorp and ServisFirst Bancshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carver Bancorp	1	0	0	0	1.00
ServisFirst Bancshares	0	2	2	1	2.80

ServisFirst Bancshares has a consensus price target of $93.67, indicating a potential upside of 27.87%. Given ServisFirst Bancshares’ stronger consensus rating and higher probable upside, analysts clearly believe ServisFirst Bancshares is more favorable than Carver Bancorp.

Summary

ServisFirst Bancshares beats Carver Bancorp on 14 of the 15 factors compared between the two stocks.

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.

About ServisFirst Bancshares

ServisFirst Bancshares, Inc. operates as the bank holding company for ServisFirst Bank that provides various banking services to individual and corporate customers. It accepts demand, time, savings, and other deposits; checking, money market, and IRA accounts; and certificates of deposit. The company's loan products include commercial lending products, including seasonal, bridge, and term loans for working capital, expansion of the business, acquisition of property, and plant and equipment, as well as commercial lines of credit; commercial real estate loans, construction and development loans, and residential real estate loans; and consumer loans, such as home equity loans, vehicle financing, loans secured by deposits, and secured and unsecured personal loans. It also offers other banking products and services comprising telephone and mobile banking, Internet banking, direct deposit, traveler's checks, safe deposit boxes, attorney trust accounts, automatic account transfers, automated teller machines, and debit and credit card systems; treasury and cash management services; wire transfer, night depository, banking-by-mail, and remote capture services; and correspondent banking services to other financial institutions. In addition, the company holds and manages participations in residential mortgages and commercial real estate loans originated by ServisFirst Bank in Alabama, Florida, Georgia, and Tennessee. The company was founded in 2005 and is headquartered in Birmingham, Alabama.