International Bancshares (NASDAQ: IBOC) and Camden National (NASDAQ:CAC) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, dividends, risk, institutional ownership, analyst recommendations, earnings and profitability.
Earnings & Valuation
This table compares International Bancshares and Camden National’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|International Bancshares||$549.62 million||4.72||$133.93 million||$2.21||17.76|
|Camden National||$169.25 million||3.99||$40.06 million||$2.72||15.99|
International Bancshares has higher revenue and earnings than Camden National. Camden National is trading at a lower price-to-earnings ratio than International Bancshares, indicating that it is currently the more affordable of the two stocks.
International Bancshares pays an annual dividend of $0.66 per share and has a dividend yield of 1.7%. Camden National pays an annual dividend of $0.92 per share and has a dividend yield of 2.1%. International Bancshares pays out 29.9% of its earnings in the form of a dividend. Camden National pays out 33.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Volatility & Risk
International Bancshares has a beta of 1.51, meaning that its share price is 51% more volatile than the S&P 500. Comparatively, Camden National has a beta of 0.79, meaning that its share price is 21% less volatile than the S&P 500.
This table compares International Bancshares and Camden National’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
57.0% of International Bancshares shares are held by institutional investors. Comparatively, 63.4% of Camden National shares are held by institutional investors. 17.9% of International Bancshares shares are held by insiders. Comparatively, 2.3% of Camden National shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This is a summary of recent recommendations and price targets for International Bancshares and Camden National, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Camden National has a consensus price target of $48.00, indicating a potential upside of 10.37%. Given Camden National’s higher probable upside, analysts clearly believe Camden National is more favorable than International Bancshares.
International Bancshares beats Camden National on 9 of the 14 factors compared between the two stocks.
About International Bancshares
International Bancshares Corporation is a financial holding company. The Company, through its subsidiaries, is primarily engaged in the business of banking, including the acceptance of checking and savings deposits, and the making of commercial, real estate, personal, home improvement, automobile, and other installment and term loans. The primary markets of the Company are South, Central and Southeast Texas, an area bordered on the east by the Galveston area, to the northwest by Round Rock, to the southwest by Del Rio and to the southeast by Brownsville, as well as the State of Oklahoma. Its banking subsidiaries facilitate international trade along the United States’ border with Mexico and elsewhere. The Bank’s subsidiaries primarily focus on providing commercial banking services to small and medium sized businesses located in their trade areas. The Company’s bank subsidiaries include International Bank of Commerce (IBC); Commerce Bank, and International Bank of Commerce, Zapata.
About Camden National
Camden National Corporation is a bank holding company. The Company is a diversified financial services provider. The primary business of the Company and its subsidiary, Camden National Bank (the Bank), is to attract deposits from, and to extend loans to, consumer, institutional, municipal, non-profit and commercial customers. The Company, through the Bank, offers commercial and consumer banking products and services, and through Camden Financial Consultants and Camden National Wealth Management, divisions of the Bank, brokerage and insurance services, as well as investment management and fiduciary services. The Bank is a national banking association. The Company had 61 banking centers, 84 automated teller machines and three lending offices as of December 31, 2016. The Company operates and manages the Bank’s business within Maine’s various regions, including Mid Coast, Southern, Central, Bangor and Downeast. Healthcare Professional Funding Corporation is a subsidiary of the Bank.
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