Camden National Corporation (NASDAQ: CAC) and Wells Fargo & (NYSE:WFC) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, dividends, institutional ownership, profitability and earnings.

Volatility and Risk

Camden National Corporation has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500. Comparatively, Wells Fargo & has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500.

Dividends

Camden National Corporation pays an annual dividend of $0.92 per share and has a dividend yield of 2.1%. Wells Fargo & pays an annual dividend of $1.56 per share and has a dividend yield of 2.8%. Camden National Corporation pays out 34.1% of its earnings in the form of a dividend. Wells Fargo & pays out 38.4% 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. Camden National Corporation has increased its dividend for 5 consecutive years.

Earnings & Valuation

This table compares Camden National Corporation and Wells Fargo &’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Camden National Corporation $147.70 million 4.61 $41.88 million $2.70 16.24
Wells Fargo & $85.36 billion 3.23 $20.15 billion $4.06 13.70

Wells Fargo & has higher revenue and earnings than Camden National Corporation. Wells Fargo & is trading at a lower price-to-earnings ratio than Camden National Corporation, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations for Camden National Corporation and Wells Fargo &, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Camden National Corporation 0 0 1 0 3.00
Wells Fargo & 5 13 12 1 2.29

Camden National Corporation presently has a consensus target price of $48.00, suggesting a potential upside of 9.44%. Wells Fargo & has a consensus target price of $57.36, suggesting a potential upside of 3.14%. Given Camden National Corporation’s stronger consensus rating and higher possible upside, analysts clearly believe Camden National Corporation is more favorable than Wells Fargo &.

Institutional & Insider Ownership

64.7% of Camden National Corporation shares are held by institutional investors. Comparatively, 75.1% of Wells Fargo & shares are held by institutional investors. 2.3% of Camden National Corporation shares are held by company insiders. Comparatively, 0.2% of Wells Fargo & shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Camden National Corporation and Wells Fargo &’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Camden National Corporation 24.65% 10.59% 1.07%
Wells Fargo & 23.25% 12.65% 1.16%

Summary

Wells Fargo & beats Camden National Corporation on 10 of the 18 factors compared between the two stocks.

About Camden National Corporation

Camden National Corporation is a bank holding company. The Company is a diversified financial services provider. The primary business of the Company and its subsidiary, Camden National Bank (the Bank), is to attract deposits from, and to extend loans to, consumer, institutional, municipal, non-profit and commercial customers. The Company, through the Bank, offers commercial and consumer banking products and services, and through Camden Financial Consultants and Camden National Wealth Management, divisions of the Bank, brokerage and insurance services, as well as investment management and fiduciary services. The Bank is a national banking association. The Company had 61 banking centers, 84 automated teller machines and three lending offices as of December 31, 2016. The Company operates and manages the Bank’s business within Maine’s various regions, including Mid Coast, Southern, Central, Bangor and Downeast. Healthcare Professional Funding Corporation is a subsidiary of the Bank.

About Wells Fargo &

Wells Fargo & Company is a bank holding company. The Company is a diversified financial services company. It has three operating segments: Community Banking, Wholesale Banking, and Wealth and Investment Management. The Company offers its services under three categories: personal, small business and commercial. It provides retail, commercial and corporate banking services through banking locations and offices, the Internet and other distribution channels to individuals, businesses and institutions in all 50 states, the District of Columbia and in other countries. It provides other financial services through its subsidiaries engaged in various businesses, including wholesale banking, mortgage banking, consumer finance, equipment leasing, agricultural finance, commercial finance, securities brokerage and investment banking, computer and data processing services, investment advisory services, mortgage-backed securities servicing and venture capital investment.

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