Cadence Bank (NYSE:CADE) versus Thomasville Bancshares (OTCMKTS:THVB) Critical Review

Thomasville Bancshares (OTCMKTS:THVB) and Cadence Bank (NYSE:CADE) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Volatility and Risk

Thomasville Bancshares has a beta of 0.19, meaning that its stock price is 81% less volatile than the S&P 500. Comparatively, Cadence Bank has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500.

Institutional & Insider Ownership

84.6% of Cadence Bank shares are held by institutional investors. 2.2% of Cadence Bank shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Thomasville Bancshares and Cadence Bank”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Thomasville Bancshares	$137.59 million	4.42	$39.27 million	N/A	N/A
Cadence Bank	$2.90 billion	2.80	$523.60 million	$2.76	16.15

Cadence Bank has higher revenue and earnings than Thomasville Bancshares.

Dividends

Thomasville Bancshares pays an annual dividend of $2.90 per share and has a dividend yield of 3.0%. Cadence Bank pays an annual dividend of $1.10 per share and has a dividend yield of 2.5%. Cadence Bank pays out 39.9% of its earnings in the form of a dividend. Cadence Bank has increased its dividend for 14 consecutive years.

Profitability

This table compares Thomasville Bancshares and Cadence Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Thomasville Bancshares	N/A	N/A	N/A
Cadence Bank	18.15%	9.97%	1.13%

Analyst Recommendations

This is a summary of current ratings and price targets for Thomasville Bancshares and Cadence Bank, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Thomasville Bancshares	0	0	0	0	0.00
Cadence Bank	0	9	2	0	2.18

Cadence Bank has a consensus price target of $42.33, indicating a potential downside of 5.02%. Given Cadence Bank’s stronger consensus rating and higher possible upside, analysts clearly believe Cadence Bank is more favorable than Thomasville Bancshares.

Summary

Cadence Bank beats Thomasville Bancshares on 12 of the 15 factors compared between the two stocks.

About Thomasville Bancshares

Thomasville Bancshares, Inc. operates as the bank holding company for Thomasville National Bank that provides a range of banking services to individual and corporate customers primarily in Thomas and Glynn counties, Georgia, Leon County, Florida, and the surrounding counties. The company offers checking and savings accounts; money market accounts; and certificates of deposits. It also provides commercial real estate mortgage loans, such as non-farm and non-residential commercial real estate loans, construction loans for commercial businesses, multifamily loans secured by income producing properties, and farmland; and 1-4 family residential loans, including first mortgage liens, junior liens, and home equity lines. In addition, the company offers commercial, financial, and agricultural loans; consumer loans comprising direct consumer instalment loans, overdrafts, and other revolving credit loans and educational loans; and loans to municipalities and development authorities. Further, it provides trust and money management services. The company was incorporated in 1995 and is based in Thomasville, Georgia.

About Cadence Bank

Cadence Bank provides commercial banking and financial services. Its products and services include consumer banking, consumer loans, mortgages, home equity lines and loans, credit cards, commercial and business banking, treasury management, specialized and asset-based lending, commercial real estate, equipment financing, and correspondent banking services. The company’s products and services also comprise small business administration lending, foreign exchange, wealth management, investment and trust, financial planning, retirement plan management, and personal and business insurance services. Cadence Bank was founded in 1876 and is headquartered in Tupelo, Mississippi.