SmartFinancial (NASDAQ:SMBK) versus Byline Bancorp (NYSE:BY) Head to Head Analysis

Byline Bancorp (NYSE:BY) and SmartFinancial (NASDAQ:SMBK) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Profitability

This table compares Byline Bancorp and SmartFinancial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Byline Bancorp	24.06%	12.04%	1.57%
SmartFinancial	12.67%	7.33%	0.71%

Insider and Institutional Ownership

67.7% of Byline Bancorp shares are owned by institutional investors. Comparatively, 58.8% of SmartFinancial shares are owned by institutional investors. 29.1% of Byline Bancorp shares are owned by insiders. Comparatively, 6.9% of SmartFinancial shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Byline Bancorp has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, SmartFinancial has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Byline Bancorp and SmartFinancial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Byline Bancorp	0	3	3	1	2.71
SmartFinancial	0	3	3	0	2.50

Byline Bancorp currently has a consensus target price of $43.50, indicating a potential upside of 14.24%. SmartFinancial has a consensus target price of $52.60, indicating a potential upside of 10.48%. Given Byline Bancorp’s stronger consensus rating and higher probable upside, equities analysts plainly believe Byline Bancorp is more favorable than SmartFinancial.

Dividends

Byline Bancorp pays an annual dividend of $0.56 per share and has a dividend yield of 1.5%. SmartFinancial pays an annual dividend of $0.36 per share and has a dividend yield of 0.8%. Byline Bancorp pays out 16.3% of its earnings in the form of a dividend. SmartFinancial pays out 9.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Byline Bancorp has raised its dividend for 1 consecutive years and SmartFinancial has raised its dividend for 3 consecutive years.

Earnings & Valuation

This table compares Byline Bancorp and SmartFinancial”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Byline Bancorp	$457.22 million	3.76	$130.05 million	$3.43	11.10
SmartFinancial	$220.61 million	3.69	$36.14 million	$3.68	12.94

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

Summary

Byline Bancorp beats SmartFinancial on 12 of the 17 factors compared between the two stocks.

About Byline Bancorp

Byline Bancorp, Inc. operates as the bank holding company for Byline Bank that provides various banking products and services for small and medium sized businesses, commercial real estate and financial sponsors, and consumers in the United States. It offers various retail deposit products, including non-interest-bearing accounts, money market demand accounts, savings accounts, interest-bearing checking accounts, and time deposits; ATM and debit cards; and online, mobile, and text banking services, as well as commercial deposits. The company also provides term loans, revolving lines of credit, and construction financing services; senior secured financing solutions to private equity backed lower middle market companies; small business administration and united states department of agriculture loans; and treasury management products and services. In addition, it offers financing solutions for equipment vendors and their end users; syndication services; and investment, trust, and wealth management services that include fiduciary and executor services, financial planning solutions, investment advisory services, and private banking services for foundations and endowments, and high net worth individuals. The company was formerly known as Metropolitan Bank Group, Inc. and changed its name to Byline Bancorp, Inc. in 2015. Byline Bancorp, Inc. was founded in 1914 and is headquartered in Chicago, Illinois.

About SmartFinancial

SmartFinancial, Inc. operates as the bank holding company for SmartBank that provides various financial services to individuals and corporate customers in Tennessee, Alabama, and Florida. It operates through Commercial Real Estate, Consumer Real Estate, Construction and Land Development, Commercial and Industrial, Leases, and Consumer and Other segments. The company offers noninterest-bearing and interest-bearing checking, interest-bearing demand, savings, money market, time deposit, individual retirement accounts, as well as certificates of deposit. It also provides commercial and residential real estate, consumer real estate, and construction and land development loans; commercial and financial loans and leases; commercial business and mortgage loans; and direct consumer installment, educational, agriculture, and other revolving credit loans; equipment financing, heavy equipment, semis, and trailers loans and leases to small and mid-size companies; letters of credit; and overdraft facilities. In addition, the company offers wealth management, insurance, mortgage origination, and internet and mobile banking services. SmartFinancial, Inc. is headquartered in Knoxville, Tennessee.