Critical Contrast: Comerica (CMA) versus Old Line Bancshares (OLBK)
Comerica (NYSE: CMA) and Old Line Bancshares (NASDAQ:OLBK) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.
Comerica pays an annual dividend of $1.20 per share and has a dividend yield of 1.5%. Old Line Bancshares pays an annual dividend of $0.32 per share and has a dividend yield of 1.1%. Comerica pays out 27.1% of its earnings in the form of a dividend. Old Line Bancshares pays out 22.4% 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. Comerica has increased its dividend for 5 consecutive years. Comerica is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider and Institutional Ownership
82.5% of Comerica shares are owned by institutional investors. Comparatively, 41.6% of Old Line Bancshares shares are owned by institutional investors. 1.1% of Comerica shares are owned by company insiders. Comparatively, 25.1% of Old Line Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Comerica and Old Line Bancshares’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Comerica||$2.97 billion||4.65||$767.50 million||$4.42||18.00|
|Old Line Bancshares||$62.10 million||5.89||$17.80 million||$1.43||20.56|
Comerica has higher revenue and earnings than Old Line Bancshares. Comerica is trading at a lower price-to-earnings ratio than Old Line Bancshares, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Comerica has a beta of 1.51, meaning that its share price is 51% more volatile than the S&P 500. Comparatively, Old Line Bancshares has a beta of 0.26, meaning that its share price is 74% less volatile than the S&P 500.
This table compares Comerica and Old Line Bancshares’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Old Line Bancshares||21.68%||10.23%||0.91%|
This is a summary of recent recommendations for Comerica and Old Line Bancshares, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Old Line Bancshares||0||1||1||0||2.50|
Comerica presently has a consensus price target of $77.47, suggesting a potential downside of 2.62%. Old Line Bancshares has a consensus price target of $29.00, suggesting a potential downside of 1.36%. Given Old Line Bancshares’ stronger consensus rating and higher probable upside, analysts plainly believe Old Line Bancshares is more favorable than Comerica.
Comerica beats Old Line Bancshares on 11 of the 17 factors compared between the two stocks.
Comerica Incorporated is a financial services company. The Company’s principal activity is lending to and accepting deposits from businesses and individuals. The Company’s segments include the Business Bank, the Retail Bank, Wealth Management, Finance and Other. The Business Bank serves middle market businesses, multinational corporations and governmental entities by offering various products and services, including commercial loans and lines of credit, deposits, cash management, capital market products, international trade finance, letters of credit, foreign exchange management services and loan syndication services. The Retail Bank includes small business banking and personal financial services, consisting of consumer lending, consumer deposit gathering and mortgage loan origination. The Wealth Management segment offers products and services consisting of fiduciary services, private banking, retirement services, investment advisory services, investment banking and brokerage services.
About Old Line Bancshares
Old Line Bancshares, Inc. is the holding company of Old Line Bank (The Bank). The Bank is a chartered trust company engaged in commercial banking business, making various types of loans, investments and accepting deposits. The Bank markets its financial services to small to medium sized businesses, entrepreneurs, professionals, consumers and clients. The Bank, through its division Old Line Financial Services, provides retirement planning and products, as well as investment services, including investment management, estate and succession planning, and allows its customers to directly purchase individual stocks, bonds and mutual funds. The Bank offers its customers safe deposit boxes, wire transfer services, debit cards, prepaid cards, automated teller machines at all of its branch locations, investment services and credit cards through a third party processor.
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