Head-To-Head Comparison: Carter Bankshares (NASDAQ:CARE) versus Sandy Spring Bancorp (NASDAQ:SASR)

Carter Bankshares (NASDAQ:CAREGet Rating) and Sandy Spring Bancorp (NASDAQ:SASRGet Rating) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, earnings, profitability, analyst recommendations, institutional ownership, valuation and dividends.

Institutional and Insider Ownership

38.2% of Carter Bankshares shares are owned by institutional investors. Comparatively, 66.4% of Sandy Spring Bancorp shares are owned by institutional investors. 3.0% of Carter Bankshares shares are owned by company insiders. Comparatively, 3.2% of Sandy Spring Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Carter Bankshares and Sandy Spring Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Carter Bankshares 19.85% 8.00% 0.76%
Sandy Spring Bancorp 37.99% 13.08% 1.55%

Analyst Ratings

This is a summary of recent ratings and price targets for Carter Bankshares and Sandy Spring Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Carter Bankshares 0 3 0 0 2.00
Sandy Spring Bancorp 0 1 1 0 2.50

Carter Bankshares presently has a consensus target price of $14.50, suggesting a potential upside of 3.13%. Sandy Spring Bancorp has a consensus target price of $55.50, suggesting a potential upside of 42.16%. Given Sandy Spring Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe Sandy Spring Bancorp is more favorable than Carter Bankshares.

Valuation and Earnings

This table compares Carter Bankshares and Sandy Spring Bancorp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Carter Bankshares $162.78 million 2.12 $31.46 million $1.20 11.72
Sandy Spring Bancorp $552.34 million 3.20 $235.11 million $4.34 9.00

Sandy Spring Bancorp has higher revenue and earnings than Carter Bankshares. Sandy Spring Bancorp is trading at a lower price-to-earnings ratio than Carter Bankshares, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Carter Bankshares has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500. Comparatively, Sandy Spring Bancorp has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500.

Summary

Sandy Spring Bancorp beats Carter Bankshares on 12 of the 14 factors compared between the two stocks.

Carter Bankshares Company Profile (Get Rating)

Carter Bankshares, Inc. operates as the bank holding company for Carter Bank & Trust that provides various banking products and services. It accepts various deposit products, including checking, savings, retirement, and money market accounts, as well as longer-term certificates of deposits. The company also offers commercial loans comprising secured and unsecured loans; consumer loans, such as secured and unsecured loans for financing automobiles, home improvements, education, overdraft protection, and personal investments, as well as residential mortgages; real estate construction and acquisition loans; home equity lines of credit; and credit cards, as well as originates and holds fixed and variable rate mortgage loans. In addition, it provides other banking services that include safe deposit boxes, direct deposit of payroll and social security checks, online banking, bill pay, online account opening, mobile deposit, mobile banking, debit cards, e-statements, and ATM services; title insurance and other financial institution-related products and services; and treasury and corporate cash management services. It operates through 69 branches in Virginia and North Carolina. Carter Bankshares, Inc. was founded in 1974 and is headquartered in Martinsville, Virginia.

Sandy Spring Bancorp Company Profile (Get Rating)

Sandy Spring Bancorp, Inc. operates as the bank holding company for Sandy Spring Bank that provides commercial and retail banking, mortgage, private banking, and trust services to individuals and businesses. It operates through three segments: Community Banking, Insurance, and Investment Management. The Community Banking segment offers financial products and services, including various loan and deposit products. Its loan products include commercial real estate loans, commercial construction loans, and other commercial loans; residential real estate loans; and consumer loans comprising home equity loans and lines, installment loans, and personal lines of credit. The Insurance segment provides general insurance agency services and annuities, such as commercial, personal, and medical liability lines. The Investment Management segment offers investment management and financial planning, including cash flow analysis, investment review, tax and retirement planning, insurance analysis, and estate planning to individuals, families, small businesses, and associations. It also provides personal trust and wealth management services. The company operates a network of approximately 50 locations in Maryland, Northern Virginia, and Washington D.C. Sandy Spring Bancorp, Inc. was founded in 1868 and is headquartered in Olney, Maryland.

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