Centerstate Bank (NASDAQ:CSFL) and National Bankshares (NASDAQ:NKSH) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.
Institutional and Insider Ownership
61.4% of Centerstate Bank shares are held by institutional investors. Comparatively, 30.3% of National Bankshares shares are held by institutional investors. 1.8% of Centerstate Bank shares are held by insiders. Comparatively, 3.7% of National Bankshares shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Centerstate Bank pays an annual dividend of $0.44 per share and has a dividend yield of 1.9%. National Bankshares pays an annual dividend of $1.34 per share and has a dividend yield of 3.6%. Centerstate Bank has increased its dividend for 3 consecutive years and National Bankshares has increased its dividend for 17 consecutive years. National Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Centerstate Bank and National Bankshares’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Centerstate Bank and National Bankshares’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Centerstate Bank||$565.76 million||5.24||$156.43 million||N/A||N/A|
|National Bankshares||$50.95 million||4.76||$16.15 million||N/A||N/A|
Centerstate Bank has higher revenue and earnings than National Bankshares.
This is a breakdown of current ratings and price targets for Centerstate Bank and National Bankshares, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Centerstate Bank currently has a consensus price target of $28.75, indicating a potential upside of 26.76%. National Bankshares has a consensus price target of $42.50, indicating a potential upside of 14.09%. Given Centerstate Bank’s higher possible upside, equities research analysts plainly believe Centerstate Bank is more favorable than National Bankshares.
Volatility and Risk
Centerstate Bank has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500. Comparatively, National Bankshares has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500.
Centerstate Bank beats National Bankshares on 9 of the 13 factors compared between the two stocks.
About Centerstate Bank
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. The company accepts various deposit products, such as savings, demand, negotiable order of withdrawal, and money market deposit accounts, as well as certificates of deposit and time deposits. Its loan products include 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. The company's loan products also comprise commercial loans to small-to-medium sized businesses for working capital, equipment purchases, and various other business purposes; and consumer loans consisting of loans to individuals for various consumer purposes, as well as business purpose loans. It also offers mutual funds, annuities, and other investment products. In addition, 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, 2018, it operated 126 full service banking offices throughout Florida, Georgia, and Alabama; 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.
About National Bankshares
National Bankshares, Inc. operates as the bank holding company for the National Bank of Blacksburg that provides retail and commercial banking services to individuals, businesses, non-profits, and local governments. The company accepts interest-bearing and non-interest bearing demand deposit accounts, money market deposit accounts, savings accounts, certificates of deposit, and individual retirement accounts. Its loan products include commercial and agricultural, commercial real estate, residential real estate, home equity, and various consumer loan products, as well as loans for the construction of commercial and residential properties. The company also provides business and consumer debit and credit cards; letters of credit, night depository, safe deposit boxes, utility payment services, and automatic funds transfer; wealth management, trust, and estate services for individual and business customers; non-deposit investment and insurance products; and telephone, mobile, and Internet banking services. As of February 22, 2018, it operated 24 branch offices, a loan production office, and 24 automated teller machines in Southwest Virginia. National Bankshares, Inc. was founded in 1891 and is headquartered in Blacksburg, Virginia.
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