Southern National Bancorp Of Virginia Inc Stock Upgraded (SONA)

NEW YORK ( TheStreet) -- Southern National Bancorp of Virginia (Nasdaq: SONA) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, impressive record of earnings per share growth, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 10.0%. Since the same quarter one year prior, revenues slightly increased by 7.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Banks industry. The net income increased by 200.4% when compared to the same quarter one year prior, rising from -$1.37 million to $1.38 million.
  • The gross profit margin for SOUTHERN NATIONAL BANCORP VA is rather high; currently it is at 64.90%. It has increased significantly from the same period last year. Despite the strong results of the gross profit margin, SONA's net profit margin of 15.40% significantly trails the industry average.
  • SOUTHERN NATIONAL BANCORP VA reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, SOUTHERN NATIONAL BANCORP VA increased its bottom line by earning $0.44 versus $0.17 in the prior year.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Commercial Banks industry and the overall market, SOUTHERN NATIONAL BANCORP VA's return on equity is below that of both the industry average and the S&P 500.

Southern National Bancorp of Virginia, Inc. operates as the bank holding company for Sonabank, which provides commercial banking products and services primarily to small and medium-sized businesses, and retail clients in the United States. The company has a P/E ratio of 30.3, above the average banking industry P/E ratio of 29.5 and above the S&P 500 P/E ratio of 17.7. Southern National Bancorp of Virginia has a market cap of $71.9 million and is part of the financial sector and banking industry. Shares are up 3.3% year to date as of the close of trading on Tuesday.

You can view the full Southern National Bancorp of Virginia Ratings Report or get investment ideas from our investment research center.
-- Written by a member of TheStreet RatingsStaff