Comparison of ServisFirst Bancshares (NASDAQ:SFBS) and Community Trust Bancorp (NASDAQ:CTBI)
ServisFirst Bancshares (NASDAQ:SFBS – Get Rating) and Community Trust Bancorp (NASDAQ:CTBI – Get Rating) are both financial companies, but which is the better investment? We’ll contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership, and earnings.
ServisFirst Bancshares pays an annual dividend of $0.92 per share and has a dividend yield of 1.2%. Community Trust Bancorp pays an annual dividend of $1.60 per share and has a dividend yield of 4.0%. ServisFirst Bancshares pays out 23.4% of its profits in the form of a dividend. Community Trust Bancorp pays out 33.9% 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 years to come. Community Trust Bancorp has increased its dividend for 42 straight years. Community Trust Bancorp is clearly the better dividend stock because it has a higher yield and a longer track record of dividend growth.
This table compares the net margins, return on equity and return on total assets of ServisFirst Bancshares and Community Trust Bancorp.
|net margins||return on equity||return on investment|
|ServisFirst bank shares||46.29%||18.82%||1.45%|
|Community Trust Bancorp||35.41%||12.33%||1.55%|
Institutional and Insider Ownership
62.5% of ServisFirst Bancshares shares are held by institutional investors. In comparison, 58.0% of Community Trust Bancorp’s shares are held by institutional investors. 8.3% of ServisFirst Bancshares shares are held by insiders. In comparison, 4.1% of Community Trust Bancorp’s shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments, and large money managers believe a stock is poised for long-term growth.
Volatility & Risk
ServisFirst Bancshares has a beta of 1.05, suggesting its stock price is 5% more volatile than the S&P 500. In comparison, Community Trust Bancorp has a beta of 0.76, suggesting its stock price is 24% less is more volatile than the S&P 500.
evaluation and result
This table compares the gross earnings, earnings per share (EPS) and valuation of ServisFirst Bancshares and Community Trust Bancorp.
|gross receipts||price/sales ratio||net income||earnings per share||price-earnings ratio|
|ServisFirst bank shares||$449.76 million||9.47||$207.73 million||$3.93||19.96|
|Community Trust Bancorp||$238.63 million||3.03||$87.94 million||$4.72||8.56|
ServisFirst Bancshares has higher revenues and profits than Community Trust Bancorp. Community Trust Bancorp is trading at a lower price-to-earnings multiple than ServisFirst Bancshares, indicating it’s currently the cheaper of the two stocks.
This is a summary of the current recommendations for ServisFirst Bancshares and Community Trust Bancorp as reported by MarketBeat.com.
|sell reviews||keep ratings||Buy reviews||Strong buy recommendations||rating score|
|ServisFirst bank shares||0||2||0||0||2.00|
|Community Trust Bancorp||0||0||0||0||N / A|
ServisFirst Bancshares currently has a consensus price target of $86.50, suggesting a potential upside of 10.29%. Given ServisFirst Bancshares’ higher potential upside potential, research analysts clearly believe that ServisFirst Bancshares is cheaper than Community Trust Bancorp.
ServisFirst Bancshares beats Community Trust Bancorp on 11 of the 15 factors compared between the two stocks.
ServisFirst Bancshares Company Profile (received rating)
ServisFirst Bancshares, Inc. acts as the bank holding company for ServisFirst Bank, which 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 credit products include commercial credit products such as: B. seasonal, bridge and term loans for working capital, business expansion, real estate and plant and equipment acquisitions and commercial lines of credit; commercial real estate loans, construction and development loans and residential real estate loans; and consumer lending, such as home equity loans, vehicle financing, deposit-backed loans, and secured and unsecured personal loans. It also offers other banking products and services, including phone and mobile banking, direct deposit, internet banking, travelers checks, safe deposit boxes, attorney escrow accounts, automated account transfers, ATM and debit card systems, and Visa credit cards; cash and cash register management; Bank transfer, overnight deposit, mail banking and remote capture; and correspondent banking services for other financial institutions. The Company also owns and manages interests in residential mortgages and commercial real estate loans issued by ServisFirst Bank in Alabama, Florida, Georgia and Tennessee. It operates 23 full-service bank branches in Alabama, Florida, Georgia, South Carolina and Tennessee and 2 credit manufacturing offices in Florida. The company was founded in 2005 and is headquartered in Birmingham, Alabama.
Community Trust Bancorp Company Profile (received rating)
Community Trust Bancorp, Inc. acts as the bank holding company for Community Trust Bank, Inc., which provides commercial and personal banking services to small and medium sized communities. The company accepts time and demand deposits, checking accounts, savings accounts and savings certificates, individual retirement accounts and Keogh plans, and money market accounts. Lending products include commercial, construction, mortgage and personal loans; lease financing, lines of credit, revolving lines of credit and term loans and other specialty loans, including asset-based financing; Residential and commercial real estate loans; and consumer credit. The company also offers cash management, safe deposit box rental and wire transfer services; issues letters of credit; and acts as trustee of personal trusts, executor of wills, trustee of employee benefit trusts and paying agent for bond and stock offerings, as well as investment agent and custodian of securities. It also offers securities brokerage, trusteeship and wealth management services; debit cards; pension and life insurance products; and repurchase agreements, as well as mobile, internet banking and e-statement services. The company operates 79 banking locations in East, Northeast, Central, South-Central Kentucky, South West Virginia and Northeast Tennessee; 4 trust offices throughout Kentucky; and 1 trust office in northeast Tennessee. Community Trust Bancorp, Inc. was founded in 1903 and is headquartered in Pikeville, Kentucky.
Receive daily news and reviews for ServisFirst Bancshares – Enter your email address below to receive a concise daily summary of the latest news and analysts’ ratings for ServisFirst Bancshares and related companies with MarketBeat.com’s FREE daily email newsletter.