Centerstate Bank (NASDAQ: CSFL) and Farmers Capital Bank (NASDAQ:FFKT) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, analyst recommendations, earnings, valuation and risk.
Insider and Institutional Ownership
76.3% of Centerstate Bank shares are held by institutional investors. Comparatively, 47.4% of Farmers Capital Bank shares are held by institutional investors. 2.4% of Centerstate Bank shares are held by company insiders. Comparatively, 3.2% of Farmers Capital Bank shares are held 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.
This table compares Centerstate Bank and Farmers Capital Bank’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Farmers Capital Bank||17.21%||10.22%||1.19%|
Valuation and Earnings
This table compares Centerstate Bank and Farmers Capital Bank’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Centerstate Bank||$316.50 million||8.39||$55.79 million||N/A||N/A|
|Farmers Capital Bank||$80.45 million||4.99||$11.68 million||$2.38||22.42|
Centerstate Bank has higher revenue and earnings than Farmers Capital Bank.
Centerstate Bank pays an annual dividend of $0.40 per share and has a dividend yield of 1.3%. Farmers Capital Bank pays an annual dividend of $0.50 per share and has a dividend yield of 0.9%. Farmers Capital Bank pays out 21.0% of its earnings in the form of a dividend.
Volatility & Risk
Centerstate Bank has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500. Comparatively, Farmers Capital Bank has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500.
This is a summary of recent ratings for Centerstate Bank and Farmers Capital Bank, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Farmers Capital Bank||0||2||0||0||2.00|
Centerstate Bank currently has a consensus price target of $30.83, indicating a potential downside of 2.61%. Farmers Capital Bank has a consensus price target of $45.00, indicating a potential downside of 15.65%. Given Centerstate Bank’s stronger consensus rating and higher probable upside, research analysts clearly believe Centerstate Bank is more favorable than Farmers Capital Bank.
Centerstate Bank beats Farmers Capital Bank on 11 of the 15 factors compared between the two stocks.
Centerstate Bank Company Profile
CenterState Bank Corporation operates as the holding company for CenterState Bank, N.A. that provides various consumer and commercial banking services to individuals, businesses, and industries in Florida. The company's deposit products include savings, demand, negotiable order of withdrawal, and money market deposit accounts, as well as certificates of deposit and time deposits. It also offers real estate loans to individuals and businesses for the purchase, improvement of, or investment in real estate; construction of single-family residential and commercial units; and development of single-family residential building lots. In addition, the company provides commercial loans to individuals and small-to-medium sized businesses for working capital, equipment purchases, and various other business purposes; and consumer loans comprising loans to individuals for various consumer purposes, as well as business purpose loans. Further, it offers mutual funds, annuities, and other investment products. Additionally, the company sells fixed income securities; and provides hedging, loan brokerage, correspondent bank deposits, safe-keeping, bond accounting, asset/liability consulting, international wires, clearing and corporate checking account, and other correspondent banking related services. As of December 31, 2017, it operated 78 bank office network located in 28 counties of Florida; and 1 loan production office in Florida, and 1 loan production office in Macon, Georgia. The company was formerly known as CenterState Banks, Inc. and changed its name to CenterState Bank Corporation in September 2017. CenterState Bank Corporation was founded in 1989 and is headquartered in Winter Haven, Florida.
Farmers Capital Bank Company Profile
Farmers Capital Bank Corporation is a bank holding company headquartered in Frankfort, Kentucky. Their bank affiliate United Bank & Capital Trust Company operates 34 banking locations in 21 communities throughout Central and Northern Kentucky.
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