Analyzing Bank of Santa Clarita (OTCMKTS:BSCA) and Cullen/Frost Bankers (NYSE:CFR)

Bank of Santa Clarita (OTCMKTS:BSCA) and Cullen/Frost Bankers (NYSE:CFR) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, risk, institutional ownership, earnings, dividends and analyst recommendations.

Profitability

This table compares Bank of Santa Clarita and Cullen/Frost Bankers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bank of Santa Clarita	N/A	N/A	N/A
Cullen/Frost Bankers	22.86%	15.58%	1.28%

Analyst Recommendations

This is a summary of current ratings and target prices for Bank of Santa Clarita and Cullen/Frost Bankers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bank of Santa Clarita	0	0	0	0	0.00
Cullen/Frost Bankers	2	5	4	1	2.33

Cullen/Frost Bankers has a consensus target price of $148.73, suggesting a potential upside of 9.66%. Given Cullen/Frost Bankers’ stronger consensus rating and higher probable upside, analysts clearly believe Cullen/Frost Bankers is more favorable than Bank of Santa Clarita.

Earnings and Valuation

This table compares Bank of Santa Clarita and Cullen/Frost Bankers”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bank of Santa Clarita	N/A	N/A	N/A	N/A	N/A
Cullen/Frost Bankers	$2.92 billion	2.92	$648.56 million	$10.27	13.21

Cullen/Frost Bankers has higher revenue and earnings than Bank of Santa Clarita.

Insider and Institutional Ownership

86.9% of Cullen/Frost Bankers shares are owned by institutional investors. 1.1% of Cullen/Frost Bankers shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Cullen/Frost Bankers beats Bank of Santa Clarita on 10 of the 10 factors compared between the two stocks.

About Bank of Santa Clarita

Bank of Santa Clarita engages in the provision of banking and financial services. It offers real estate, small business administration, commercial and consumer loans, consumer and business checking accounts, savings accounts, certificates of deposit, trade finance, and money transfers. The company was founded by Frank D. Di Tomaso on October 26, 2004 and is headquartered in Santa Clarita, CA.

About Cullen/Frost Bankers

Cullen/Frost Bankers, Inc. operates as the bank holding company for Frost Bank that provides commercial and consumer banking services in Texas. The company offers commercial banking services to corporations, including financing for industrial and commercial properties, interim construction related to industrial and commercial properties, equipment, inventories and accounts receivables, and acquisitions; and treasury management services, as well as originates commercial leasing services. It also provides consumer banking services, such as checking accounts, savings programs, automated-teller machines (ATMs), overdraft facilities, installment and real estate loans, first mortgage loans, home equity loans and lines of credit, drive-in and night deposit services, safe deposit facilities, and brokerage services. In addition, the company offers international banking services comprising deposits, loans, letters of credit, foreign collections, funds transmitting, and foreign exchange services; correspondent banking activities, including check clearing, transfer of funds, fixed income security services, and securities custody and clearance services. Further, it offers trust, investment, agency, and custodial services for individual and corporate clients; capital market services that include sales and trading, new issue underwriting, money market trading, advisory, and securities safekeeping and clearance; and support for international business activities, including foreign exchange, letters of credit, export-import financing, and other related activities. Additionally, the company offers insurance and securities brokerage services; holding of securities for investment purposes; and investment management services for mutual funds, institutions, and individuals. It serves energy, manufacturing, services, construction, retail, telecommunications, healthcare, military, and transportation industries. The company was founded in 1868 and is headquartered in San Antonio, Texas.