Camden National (NASDAQ:CAC) and Webster Financial (NYSE:WBS) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, dividends, profitability, risk and institutional ownership.
This table compares Camden National and Webster Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Camden National and Webster Financial’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Camden National||$174.70 million||3.31||$28.47 million||$2.73||13.57|
|Webster Financial||$1.17 billion||4.27||$255.43 million||$2.59||20.95|
Webster Financial has higher revenue and earnings than Camden National. Camden National is trading at a lower price-to-earnings ratio than Webster Financial, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Camden National has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500. Comparatively, Webster Financial has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500.
This is a breakdown of current ratings and recommmendations for Camden National and Webster Financial, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Camden National presently has a consensus target price of $49.75, suggesting a potential upside of 34.28%. Webster Financial has a consensus target price of $62.00, suggesting a potential upside of 14.29%. Given Camden National’s stronger consensus rating and higher possible upside, research analysts clearly believe Camden National is more favorable than Webster Financial.
Camden National pays an annual dividend of $1.20 per share and has a dividend yield of 3.2%. Webster Financial pays an annual dividend of $1.32 per share and has a dividend yield of 2.4%. Camden National pays out 44.0% of its earnings in the form of a dividend. Webster Financial pays out 51.0% 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 has raised its dividend for 5 consecutive years and Webster Financial has raised its dividend for 7 consecutive years. Camden National is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional & Insider Ownership
64.4% of Camden National shares are held by institutional investors. Comparatively, 89.1% of Webster Financial shares are held by institutional investors. 2.3% of Camden National shares are held by company insiders. Comparatively, 2.2% of Webster Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Webster Financial beats Camden National on 10 of the 17 factors compared between the two stocks.
About Camden National
Camden National Corporation operates as the holding company for Camden National Bank that provides commercial and consumer banking products and services to consumer, institutional, municipal, non-profit, and commercial customers. It offers various deposit products, including demand, checking, saving, and money market accounts; and time deposits. The company also originates single family and multi-family residential loans, commercial real estate loans, municipal loans, and various consumer loans, as well as loans for the construction of residential homes, multi-family properties, and commercial real estate properties; and commercial lending to the small business medical field, including dentists, optometrists, and veterinarians. As of January 30, 2018, it operated a network of 60 banking centers, 76 ATMs, and lending offices in New Hampshire and Massachusetts. In addition, the company provides brokerage and insurance services through its financial offerings consisting of college, retirement, estate planning, mutual funds, strategic asset management accounts, and variable and fixed annuities. Further, Camden National Corporation offers a range of investment management, financial planning, fiduciary, asset management, and wealth management services, as well as serves as trustee. The company was founded in 1875 and is headquartered in Camden, Maine.
About Webster Financial
Webster Financial Corporation operates as the holding company for Webster Bank, National Association that provides financial services to individuals, families, and businesses in the United States. It operates through four segments: Commercial Banking, Community Banking, HSA Bank, and Private Banking. The Commercial Banking segment provides lending, deposit, and cash management services to middle market companies; and asset-based lending, commercial real estate, and equipment finance, as well as treasury and payment services, which include government and institutional banking. The Community Banking segment offers deposit and fee-based services, residential mortgages, home equity lines/loans, unsecured consumer loans, and credit cards to consumers, as well as investment and securities-related services, including brokerage and investment advice through a strategic partnership with LPL Financial Holdings Inc. This segment also provides credit, deposit, and cash flow management products to businesses and professional service firms. The HSA Bank segment offers health savings accounts, health reimbursement accounts, flexible spending accounts, and other financial solutions to employers for the benefit of their employees and individuals. The Private Banking segment provides relationship banking services for high net worth clients, not-for-profit organizations, and business clients for asset management, trust, loan, and deposit products and financial planning services. The company also provides its services telephone and mobile banking services, as well as through its Website. As of February 14, 2018, it operated 167 banking centers and 334 ATMs. Webster Financial Corporation was founded in 1935 and is headquartered in Waterbury, Connecticut.
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