ServisFirst Bancshares (NASDAQ:SFBS – Get Rating) and Community Trust Bancorp (NASDAQ:CTBI – Get Rating) are both finance companies, but which is the best investment? We will compare the two companies based on their risk strength, 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 23.4% of its profits as a dividend. Community Trust Bancorp pays 33.9% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Community Trust Bancorp has increased its dividend for 42 consecutive years. Community Trust Bancorp is clearly the best dividend stock, given its higher yield and longer track record of dividend growth.
This table compares the net margins, return on equity and return on assets of ServisFirst Bancshares and Community Trust Bancorp.
|Net margins||Return on equity||return on assets|
|Community Trust Bank||35.41%||12.33%||1.55%|
Institutional and Insider Ownership
62.5% of ServisFirst Bancshares shares are held by institutional investors. By comparison, 58.0% of Community Trust Bancorp’s shares are held by institutional investors. 8.3% of ServisFirst Bancshares shares are held by insiders. By comparison, 4.1% of Community Trust Bancorp’s shares are held by insiders. Strong institutional ownership indicates that hedge funds, endowments, and large fund managers believe a stock is poised for long-term growth.
Volatility and 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 volatile than the S&P 500.
Valuation and benefits
This table compares the gross revenue, earnings per share (EPS) and valuation of ServisFirst Bancshares and Community Trust Bancorp.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|ServisFirst Bancshares||$449.76 million||9.47||$207.73 million||$3.93||19.96|
|Community Trust Bank||$238.63 million||3.03||$87.94 million||$4.72||8.56|
ServisFirst Bancshares has higher revenue and earnings than Community Trust Bancorp. Community Trust Bancorp trades at a lower price-to-earnings ratio than ServisFirst Bancshares, indicating that it is currently the more affordable of the two stocks.
This is a summary of the current recommendations for ServisFirst Bancshares and Community Trust Bancorp, as reported by MarketBeat.com.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|Community Trust Bank||0||0||0||0||N / A|
ServisFirst Bancshares currently has a consensus target price of $86.50, suggesting a potential upside of 10.29%. Considering the possible higher upside of ServisFirst Bancshares, research analysts clearly believe that ServisFirst Bancshares is more favorable 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 (Get an assessment)
ServisFirst Bancshares, Inc. operates as a bank holding company for ServisFirst Bank which provides various retail and corporate banking services. 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 loan products, such as seasonal, bridging and term loans for working capital, business expansion, acquisition of property, 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, deposit-backed loans, and secured and unsecured personal loans. It also offers other banking products and services including telephone and mobile banking, direct deposit, Internet banking, traveler’s checks, safe deposit boxes, attorney’s trust accounts, automatic account, ATMs and debit card systems, as well as Visa credit cards. ; treasury and cash management services; wire transfer, night deposit, mail banking and telecapture services; and correspondent banking services to other financial institutions. In addition, the company owns and manages interests in residential mortgage loans and commercial real estate loans issued by ServisFirst Bank in Alabama, Florida, Georgia and Tennessee. It operates 23 full-service banking offices located in Alabama, Florida, Georgia, South Carolina and Tennessee, as well as 2 loan origination offices in Florida. The company was founded in 2005 and is based in Birmingham, Alabama.
Company Profile Community Trust Bancorp (Get an assessment)
Community Trust Bancorp, Inc. operates as a bank holding company for Community Trust Bank, Inc. which provides commercial and personal banking services to small and medium communities. The company accepts term and demand deposits, checking accounts, savings accounts and savings certificates, individual retirement accounts and Keogh plans and money market accounts. Its lending products include commercial, construction, mortgage and personal loans; leasing, lines of credit, revolving lines of credit and term loans, and other specialty lending, including asset-based financing; residential and commercial real estate loans; and consumer loans. The company also offers cash management, safe deposit box rental and funds transfer services; issues letters of credit; and acts as trustee of personal trusts, executor, trustee of employee benefit trusts and paying agent for bond and stock issues, as well as investment agent and depositor of securities movables. In addition, it provides securities brokerage, trust and wealth management services; debit cards; annuity and life insurance products; and repurchase agreements, as well as mobile, internet banking and e-statement services. The company operates 79 banking locations in eastern, northeast, central, south-central Kentucky, southern West Virginia and northeast Tennessee; 4 trust offices across Kentucky; and 1 fiduciary office in northeast Tennessee. Community Trust Bancorp, Inc. was founded in 1903 and is headquartered in Pikeville, Kentucky.
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