Critical Review: Patriot National Bancorp (PNBK) and Cadence Bancorp (CADE)

Patriot National Bancorp (NASDAQ:PNBK) and Cadence Bancorp (NYSE:CADE) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.

Risk and Volatility

Patriot National Bancorp has a beta of -0.2, indicating that its share price is 120% less volatile than the S&P 500. Comparatively, Cadence Bancorp has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500.

Valuation & Earnings

This table compares Patriot National Bancorp and Cadence Bancorp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Patriot National Bancorp $34.29 million 2.55 $4.14 million N/A N/A
Cadence Bancorp $430.78 million 4.60 $102.35 million $1.48 16.02

Cadence Bancorp has higher revenue and earnings than Patriot National Bancorp.

Profitability

This table compares Patriot National Bancorp and Cadence Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Patriot National Bancorp 9.59% 6.42% 0.50%
Cadence Bancorp 24.49% 11.24% 1.40%

Dividends

Patriot National Bancorp pays an annual dividend of $0.04 per share and has a dividend yield of 0.2%. Cadence Bancorp pays an annual dividend of $0.60 per share and has a dividend yield of 2.5%. Cadence Bancorp pays out 40.5% of its earnings in the form of a dividend.

Insider & Institutional Ownership

4.9% of Patriot National Bancorp shares are held by institutional investors. Comparatively, 67.7% of Cadence Bancorp shares are held by institutional investors. 78.6% of Patriot National Bancorp shares are held by company insiders. Comparatively, 0.1% of Cadence Bancorp 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.

Analyst Ratings

This is a summary of recent ratings for Patriot National Bancorp and Cadence Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Patriot National Bancorp 0 0 1 0 3.00
Cadence Bancorp 0 3 2 1 2.67

Patriot National Bancorp currently has a consensus target price of $24.00, indicating a potential upside of 7.19%. Cadence Bancorp has a consensus target price of $31.00, indicating a potential upside of 30.75%. Given Cadence Bancorp’s higher probable upside, analysts plainly believe Cadence Bancorp is more favorable than Patriot National Bancorp.

Summary

Cadence Bancorp beats Patriot National Bancorp on 12 of the 16 factors compared between the two stocks.

Patriot National Bancorp Company Profile

Patriot National Bancorp, Inc. operates as the bank holding company for Patriot Bank, N.A. that provides community banking services to individuals, small and medium-sized businesses, and professionals. The company offers consumer and commercial deposit accounts, such as checking accounts, interest-bearing negotiable order of withdrawal accounts, money market accounts, time certificates of deposit, savings accounts, individual retirement accounts, and health savings accounts, as well as certificate of deposit account registry service. Its loan portfolio comprises commercial real estate, commercial business, construction, and consumer loans. The company also offers automated clearing house transfers, lockbox, Internet banking, bill payment, remote deposit capture, debit card, money order, traveler's check, and automatic teller machine services. Patriot National Bancorp, Inc. provides its products and services through its main office in Stamford; seven branch offices in Connecticut; and two branch offices in New York. The company was founded in 1994 and is headquartered in Stamford, Connecticut. Patriot National Bancorp, Inc. is a subsidiary of PNBK Holdings LLC.

Cadence Bancorp Company Profile

Cadence Bancorporation operates as the bank holding company for Cadence Bank, N.A. that provides commercial banking products and services to businesses, high net worth individuals, business owners, and retail customers in the United States. The company operates through Banking and Financial Services segments. It offers various deposit products, including checking, savings, money market, and other deposit accounts. The company also provides commercial and industrial, and residential and commercial real estate loans; other consumer loans, such as home equity, auto, boat, and personal installment loans; and shared national credits. In addition, it offers wealth management, and other fiduciary and private banking services under the Linscomb & Williams and Cadence Trust brands. Further, the company provides life, disability, long-term care, homeowner's, property and casualty, and key person insurance products, as well as buy-sell agreements to retail customers; and business owner, commercial vehicle, property and liability, workers compensation, and specialty liability policies to commercial customers under the Cadence Insurance Services and Cadence Investment Services brands through financial consultants and advisors, and third party partners, as well as directly. Additionally, it offers various financial services comprising debit and credit cards; treasury management and merchant services; employee and payroll benefit solutions; automated clearing house, lock-box, and remote deposit capture services; international trade finance; and international trade, foreign exchange, and other treasury services, as well as online, mobile, and telephone banking services. As of December 31, 2017, it operated 63 full-service and 2 drive-thru branches in Alabama, Florida, Texas, Mississippi, and Tennessee, as well as 78 ATMs and 9 ITMs. The company was founded in 1885 and is headquartered in Houston, Texas. Cadence Bancorporation is a subsidiary of Cadence Bancorp, LLC.

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