Banc of California (NYSE:BANC) & Community Bank System (NYSE:CBU) Financial Comparison

Banc of California (NYSE:BANCGet Rating) and Community Bank System (NYSE:CBUGet Rating) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, risk, profitability and valuation.

Dividends

Banc of California pays an annual dividend of $0.24 per share and has a dividend yield of 1.3%. Community Bank System pays an annual dividend of $1.72 per share and has a dividend yield of 2.5%. Banc of California pays out 24.5% of its earnings in the form of a dividend. Community Bank System pays out 49.4% 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. Community Bank System has increased its dividend for 12 consecutive years. Community Bank System is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

92.7% of Banc of California shares are held by institutional investors. Comparatively, 69.6% of Community Bank System shares are held by institutional investors. 9.9% of Banc of California shares are held by insiders. Comparatively, 1.6% of Community Bank System shares are held 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.

Profitability

This table compares Banc of California and Community Bank System’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Banc of California 20.07% 9.34% 0.88%
Community Bank System 29.94% 9.28% 1.26%

Volatility and Risk

Banc of California has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500. Comparatively, Community Bank System has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Banc of California and Community Bank System, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Banc of California 0 2 0 0 2.00
Community Bank System 0 0 0 0 N/A

Banc of California presently has a consensus price target of $20.50, indicating a potential upside of 13.32%. Given Banc of California’s higher possible upside, equities analysts plainly believe Banc of California is more favorable than Community Bank System.

Valuation and Earnings

This table compares Banc of California and Community Bank System’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Banc of California $310.59 million 3.65 $62.35 million $0.98 18.46
Community Bank System $633.66 million 5.77 $189.69 million $3.48 19.50

Community Bank System has higher revenue and earnings than Banc of California. Banc of California is trading at a lower price-to-earnings ratio than Community Bank System, indicating that it is currently the more affordable of the two stocks.

Summary

Community Bank System beats Banc of California on 9 of the 15 factors compared between the two stocks.

Banc of California Company Profile (Get Rating)

Banc of California, Inc. operates as the bank holding company for Banc of California, National Association that provides banking products and services in the United States. The company offers deposit products, including checking, savings, money market, retirement, and interest-bearing and noninterest-bearing demand accounts, as well as certificate of deposits. It also provides various commercial and consumer loan products, such as commercial and industrial loans; commercial real estate and multifamily loans; construction loans; single family residential mortgage loans; warehouse and indirect/direct leveraged lending; home equity lines of credit; small business administration loans; and other consumer loans. In addition, the company offers automated bill payment, cash and treasury management, foreign exchange, card payment, remote and mobile deposit capture, automated clearing house origination, wire transfer, direct deposit, and internet banking services; and master demand accounts, interest rate swaps, and safe deposit boxes. Further, it invests in collateralized loan obligations, agency securities, municipal bonds, agency residential mortgage-backed securities, and corporate debt securities. As of December 31, 2020, the company operated 29 full-service branches in Southern California. The company was formerly known as First PacTrust Bancorp, Inc. and changed its name to Banc of California, Inc. in July 2013. Banc of California, Inc. was founded in 1941 and is headquartered in Santa Ana, California.

Community Bank System Company Profile (Get Rating)

Community Bank System, Inc. is a holding company, which engages in the provision of retail, business, and municipal banking services. It operates through the following segments: Banking, Employee Benefit Services, and All Other. The Banking segment offers an array of lending and depository-related products and services to individuals, businesses, and municipal enterprises. The Employee Benefit Services segment provides employee benefit trust services, collective investment funds, fund administration, transfer agency, retirement plan and VEBA/HRA, and health savings account plan administration services, actuarial services, and healthcare consulting services. The All Other segment consists of wealth management and insurance services. The company was founded on April 15, 1983 and is headquartered in DeWitt, NY.

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