Head-To-Head Survey: ConnectOne Bancorp (CNOB) & Community Trust Bancorp (CTBI)

ConnectOne Bancorp (NASDAQ: CNOB) and Community Trust Bancorp (NASDAQ:CTBI) are both small-cap financials companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, valuation, earnings, risk, analyst recommendations and profitability.

Earnings and Valuation

This table compares ConnectOne Bancorp and Community Trust Bancorp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ConnectOne Bancorp $189.53 million 4.96 $43.22 million $0.94 31.22
Community Trust Bancorp $204.20 million 4.14 $51.49 million $2.91 16.41

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

Dividends

ConnectOne Bancorp pays an annual dividend of $0.30 per share and has a dividend yield of 1.0%. Community Trust Bancorp pays an annual dividend of $1.32 per share and has a dividend yield of 2.8%. ConnectOne Bancorp pays out 31.9% of its earnings in the form of a dividend. Community Trust Bancorp pays out 45.4% 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. ConnectOne Bancorp has increased its dividend for 37 consecutive years.

Institutional and Insider Ownership

68.6% of ConnectOne Bancorp shares are owned by institutional investors. Comparatively, 56.2% of Community Trust Bancorp shares are owned by institutional investors. 7.6% of ConnectOne Bancorp shares are owned by insiders. Comparatively, 4.8% of Community Trust Bancorp 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.

Profitability

This table compares ConnectOne Bancorp and Community Trust Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ConnectOne Bancorp 22.80% 10.30% 1.21%
Community Trust Bancorp 25.22% 9.59% 1.21%

Volatility & Risk

ConnectOne Bancorp has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, Community Trust Bancorp has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for ConnectOne Bancorp and Community Trust Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ConnectOne Bancorp 0 0 2 0 3.00
Community Trust Bancorp 0 2 0 0 2.00

ConnectOne Bancorp currently has a consensus price target of $31.25, suggesting a potential upside of 6.47%. Community Trust Bancorp has a consensus price target of $43.00, suggesting a potential downside of 9.95%. Given ConnectOne Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe ConnectOne Bancorp is more favorable than Community Trust Bancorp.

Summary

ConnectOne Bancorp beats Community Trust Bancorp on 11 of the 16 factors compared between the two stocks.

About ConnectOne Bancorp

ConnectOne Bancorp, Inc. is a bank holding company of ConnectOne Bank (the Bank). The Bank is a community-based, full-service New Jersey-chartered commercial bank. The Bank offers a range of deposit and loan products. In addition, to attract the business of consumer and business customers, it also provides an array of other banking services. Products and services provided include personal and business checking accounts, retirement accounts, money market accounts, time and savings accounts, credit cards, wire transfers, access to automated teller services, Internet banking, Treasury Direct, automated clearing house (ACH) origination, lockbox services and mobile banking by phone. In addition, it offers safe deposit boxes. The Bank also offers remote deposit capture banking for both retail and business customers. It offers a range of deposit and loan products and services to the general public and, in particular, to small and mid-sized businesses, local professionals and individuals.

About Community Trust Bancorp

Community Trust Bancorp, Inc. is a bank holding company. The Company holds interests in a commercial bank, Community Trust Bank, Inc. (the Bank), and a trust company, Community Trust and Investment Company. Through its subsidiaries, the Company engages in a range of commercial and personal banking, and trust and wealth management activities, which include accepting time and demand deposits; making secured and unsecured loans to corporations, individuals and others; providing cash management services to corporate and individual customers; issuing letters of credit; renting safe deposit boxes, and providing funds transfer services. Its loan portfolio includes commercial loans, such as construction loans, loans secured by real estate, equipment lease financing and commercial other loans; residential loans, such as real estate construction loans, real estate mortgages and home equity loans, and consumer loans, such as consumer direct loans and consumer indirect loans.

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