Cape Bancorp (NASDAQ: CBNJ) and Banner Corporation (NASDAQ:BANR) are both financials companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitabiliy, risk and dividends.

Earnings & Valuation

This table compares Cape Bancorp and Banner Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cape Bancorp N/A N/A N/A N/A N/A
Banner Corporation $463.36 million 4.02 $95.84 million $2.88 19.45

Banner Corporation has higher revenue and earnings than Cape Bancorp.

Analyst Recommendations

This is a breakdown of recent recommendations for Cape Bancorp and Banner Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cape Bancorp 0 0 0 0 N/A
Banner Corporation 0 2 2 0 2.50

Banner Corporation has a consensus target price of $53.33, suggesting a potential downside of 4.78%. Given Banner Corporation’s higher possible upside, analysts clearly believe Banner Corporation is more favorable than Cape Bancorp.

Profitability

This table compares Cape Bancorp and Banner Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cape Bancorp 13.12% 4.73% 0.50%
Banner Corporation 19.63% 7.50% 0.99%

Insider and Institutional Ownership

88.2% of Banner Corporation shares are owned by institutional investors. 1.7% of Banner Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

Banner Corporation pays an annual dividend of $1.00 per share and has a dividend yield of 1.8%. Cape Bancorp does not pay a dividend. Banner Corporation pays out 34.7% of its earnings in the form of a dividend.

Summary

Banner Corporation beats Cape Bancorp on 9 of the 10 factors compared between the two stocks.

About Cape Bancorp

Cape Bancorp, Inc. (Cape Bancorp) is the holding company of Cape Bank (the Bank). The Bank focuses on providing deposit and loan products to retail customers and to small and mid-sized businesses from its fourteen full service branch offices, located in Atlantic and Cape May Counties, one drive-up teller/ATM operation in Atlantic County, three market development offices (MDOs) located in Burlington, Cape May and Atlantic Counties in New Jersey, and two MDOs in Pennsylvania servicing the five county Philadelphia market located in Radnor, Delaware County and in Philadelphia. It attracts deposits from the general public and uses those funds to originate a variety of loans, including commercial mortgages, commercial business loans, home equity loans and lines of credit (HELOC) and construction loans. Its retail and business banking deposit products include checking accounts, money market accounts, savings accounts, and certificates of deposit with terms ranging from 30 days to 60 months.

About Banner Corporation

Banner Corporation is a bank holding company. The Company is engaged in the business of planning, directing and coordinating the business activities of its subsidiaries, Banner Bank and Islanders Bank. Banner Bank is a Washington-chartered commercial bank. Banner Bank is a regional bank, which offers a range of commercial banking services and financial products to individuals, businesses and public sector entities in its primary market areas. Banner Bank is also an active participant in the secondary market, engaging in mortgage banking operations through the origination and sale of one- to four-family and multi-family residential loans. Islanders Bank is also a Washington-chartered commercial bank. Islanders Bank is a community bank, which offers similar banking services to individuals, businesses and public entities located primarily in the San Juan Islands. The Banks’ primary business is that of traditional banking institutions, accepting deposits and originating loans.

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