Critical Contrast: Umpqua (NASDAQ:UMPQ) and Community Investors Bancorp (NASDAQ:CIBN)

Community Investors Bancorp (OTCMKTS:CIBN) and Umpqua (NASDAQ:UMPQ) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.

Analyst Ratings

This is a summary of current recommendations and price targets for Community Investors Bancorp and Umpqua, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Community Investors Bancorp 0 0 0 0 N/A
Umpqua 0 5 3 0 2.38

Umpqua has a consensus target price of $23.00, suggesting a potential upside of 41.36%. Given Umpqua’s higher possible upside, analysts clearly believe Umpqua is more favorable than Community Investors Bancorp.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Community Investors Bancorp $7.61 million 1.85 $460,000.00 N/A N/A
Umpqua $1.35 billion 2.66 $316.26 million $1.46 11.13

Umpqua has higher revenue and earnings than Community Investors Bancorp.

Risk & Volatility

Community Investors Bancorp has a beta of 0.13, indicating that its share price is 87% less volatile than the S&P 500. Comparatively, Umpqua has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Community Investors Bancorp N/A N/A N/A
Umpqua 23.20% 7.91% 1.19%

Insider and Institutional Ownership

87.5% of Umpqua shares are owned by institutional investors. 15.8% of Community Investors Bancorp shares are owned by company insiders. Comparatively, 0.4% of Umpqua 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.

Dividends

Community Investors Bancorp pays an annual dividend of $0.36 per share and has a dividend yield of 2.0%. Umpqua pays an annual dividend of $0.84 per share and has a dividend yield of 5.2%. Umpqua pays out 57.5% of its earnings in the form of a dividend. Umpqua has increased its dividend for 8 consecutive years. Umpqua is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Umpqua beats Community Investors Bancorp on 12 of the 15 factors compared between the two stocks.

About Community Investors Bancorp

Community Investors Bancorp, Inc. operates as the bank holding company for First Federal Community Bank of Bucyrus that provides personal and commercial banking services in Ohio. It accepts checking and savings accounts, individual retirement accounts, time deposits, and health savings accounts. The company offers consumer loans, including personal, auto, home equity, and home improvement loans; commercial loans, such as real estate, term, business expansion, construction, and SBA loans; and mortgages. It also provides Internet and telephone banking, debit cards, night depositary and shareholder services, merchant services, and financial planning and investment advice services. The company was founded in 1888 and is based in Bucyrus, Ohio.

About Umpqua

Umpqua Holdings Corporation operates as the holding company of Umpqua Bank that provides commercial and retail banking, and retail brokerage services. It operates through four segments: Wholesale Bank, Wealth Management, Retail Bank, and Home Lending. The company offers deposit products, including non-interest bearing checking, interest bearing checking and savings, and money market accounts, as well as certificates of deposit. It also provides loans for corporate and commercial customers, such as accounts receivable and inventory financing, multi-family and equipment loans, commercial equipment leases, international trade, real estate construction loans, permanent financing products, and small business administration program financing, as well as capital markets and treasury management services. In addition, the company offers loan products for small businesses; commercial and industrial loans; residential real estate loans for the construction, purchase, and refinancing of residential owner-occupied and rental properties; and consumer loans comprising secured and unsecured personal loans, home equity and personal lines of credit, and motor vehicle loans. Further, it provides financial planning, trust, and investment services; treasury and cash management services; retail brokerage and investment advisory services; and digital, mobile, telephone, text, and online banking services. The company serves middle market corporate, commercial, and business banking customers; individual investors; and high net worth individuals. As of December 31, 2018, it operated commercial banking centers in 299 locations in Oregon, Washington, California, Idaho, and Nevada. The company was founded in 1953 and is headquartered in Portland, Oregon.

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