Xenith Bankshares (NASDAQ: XBKS) and Community Bank System (NYSE:CBU) are both banks – nec companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, valuation, earnings, profitability, analyst recommendations, dividends and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Xenith Bankshares and Community Bank System, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Xenith Bankshares 0 1 1 0 2.50
Community Bank System 0 5 0 0 2.00

Xenith Bankshares presently has a consensus target price of $28.00, indicating a potential upside of Infinity. Community Bank System has a consensus target price of $54.00, indicating a potential upside of 0.22%. Given Xenith Bankshares’ stronger consensus rating and higher possible upside, analysts clearly believe Xenith Bankshares is more favorable than Community Bank System.

Dividends

Community Bank System pays an annual dividend of $1.36 per share and has a dividend yield of 2.5%. Xenith Bankshares does not pay a dividend. Community Bank System pays out 63.8% of its earnings in the form of a dividend. Community Bank System has raised its dividend for 7 consecutive years.

Earnings & Valuation

This table compares Xenith Bankshares and Community Bank System’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Xenith Bankshares $103.54 million 0.00 $57.04 million $0.91 N/A
Community Bank System $441.14 million 6.18 $103.81 million $2.13 25.30

Community Bank System has higher revenue and earnings than Xenith Bankshares. Xenith Bankshares is trading at a lower price-to-earnings ratio than Community Bank System, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Xenith Bankshares has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. Comparatively, Community Bank System has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500.

Profitability

This table compares Xenith Bankshares and Community Bank System’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Xenith Bankshares 18.26% 5.55% 0.82%
Community Bank System 21.00% 9.22% 1.33%

Insider and Institutional Ownership

58.7% of Xenith Bankshares shares are held by institutional investors. Comparatively, 69.2% of Community Bank System shares are held by institutional investors. 31.7% of Xenith Bankshares shares are held by company insiders. Comparatively, 3.2% of Community Bank System shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Community Bank System beats Xenith Bankshares on 10 of the 16 factors compared between the two stocks.

About Xenith Bankshares

Xenith Bankshares, Inc., formerly Hampton Roads Bankshares, Inc., is a bank holding company for Xenith Bank. Xenith Bank is a commercial bank specifically targeting the banking needs of middle market and small businesses, local real estate developers and investors, and retail banking clients. Xenith Bank’s regional area of operations spans from Baltimore, Maryland, to Raleigh and eastern North Carolina, complementing its presence in greater Washington, D.C., greater Richmond, Virginia, and greater Hampton Roads, Virginia. Its service and products consist primarily of taking deposits from, and making loans to, its target customers within its target markets. It offers other banking related specialized products and services to its customers, such as travelers’ checks, coin counters, wire services, online banking and safe deposit box services. Additionally, it offers commercial customers various cash management products, including remote deposit.

About Community Bank System

Community Bank System, Inc. is a bank holding company. The Company owns two subsidiaries: Community Bank, N.A. (CBNA or the Bank) and Benefit Plans Administrative Services, Inc. (BPAS). It operates in three segments: banking, employee benefit services, and All Other. The Banking segment provides lending and depository-related products and services to individuals, businesses and municipal enterprises. The Employee benefit services segment, consisting of BPAS and its subsidiaries, provides employee benefit trust services; collective investment fund; actuarial services, and healthcare consulting services. The All Other segment consists of wealth management services, including trust services provided by the personal trust unit within the Bank, broker-dealer and investment advisory services provided by Community Investment Services, Inc. (CISI), Oneida Wealth Management, Inc. (OWM) and The Carta Group, Inc, and asset management provided by Nottingham Advisors, Inc.

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