Analyzing Amerant Bancorp (NASDAQ:AMTB) and Carter Bankshares (NASDAQ:CARE)

Amerant Bancorp (NASDAQ:AMTBGet Rating) and Carter Bankshares (NASDAQ:CAREGet Rating) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Profitability

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

Net Margins Return on Equity Return on Assets
Amerant Bancorp 30.67% 9.83% 1.03%
Carter Bankshares 19.85% 8.00% 0.76%

Analyst Ratings

This is a summary of recent recommendations for Amerant Bancorp and Carter Bankshares, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Amerant Bancorp 0 0 3 0 3.00
Carter Bankshares 0 3 0 0 2.00

Amerant Bancorp currently has a consensus target price of $31.63, suggesting a potential upside of 6.95%. Carter Bankshares has a consensus target price of $14.50, suggesting a potential downside of 3.33%. Given Amerant Bancorp’s stronger consensus rating and higher probable upside, research analysts plainly believe Amerant Bancorp is more favorable than Carter Bankshares.

Volatility & Risk

Amerant Bancorp has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500. Comparatively, Carter Bankshares has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500.

Earnings and Valuation

This table compares Amerant Bancorp and Carter Bankshares’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Amerant Bancorp $368.46 million 2.74 $112.92 million $3.09 9.57
Carter Bankshares $162.78 million 2.26 $31.46 million $1.20 12.50

Amerant Bancorp has higher revenue and earnings than Carter Bankshares. Amerant 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.

Insider and Institutional Ownership

34.6% of Amerant Bancorp shares are owned by institutional investors. Comparatively, 38.2% of Carter Bankshares shares are owned by institutional investors. 17.2% of Amerant Bancorp shares are owned by insiders. Comparatively, 3.0% of Carter Bankshares shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

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

About Amerant Bancorp (Get Rating)

Amerant Bancorp Inc. operates as the bank holding company for Amerant Bank, N.A. that provides banking products and services to individuals and businesses in the United States and internationally. The company offers checking, savings, and money market accounts; and certificates of deposits. It also provides variable and fixed rate commercial real estate loans; loans secured by owner-occupied properties; loans to domestic and foreign individuals primarily secured by personal residence; working capital loans, asset-based lending, participations in shared national credits, purchased receivables, and small business administration loans; loans to financial institutions and acceptances; and consumer loans and overdrafts, such as automobile, personal, or loans secured by cash or securities and revolving credit card agreements. In addition, the company offers trust and estate planning products and services to high-net-worth customers, brokerage and investment advisory services in global capital markets, and wealth management and fiduciary services. Further, it provides debit and credit cards, night depositories, direct deposits, cashier's checks, safe deposit boxes, letters of credit, and treasury management services, including wire transfer, remote deposit capture, and automated clearinghouse services; derivative instruments; and online and mobile banking, account balances, statements and other documents, online transfers and bill payment, and electronic delivery of customer statements services, as well as automated teller machines, and banking by mobile devices, telephone, and mail. As of December 31, 2021, the company operated 24 banking centers comprising 17 in Florida and 7 in Texas. It also operates loan production offices in Tampa, Florida. The company was formerly known as Mercantil Bank Holding Corporation and changed its name to Amerant Bancorp Inc. in June 2019. Amerant Bancorp Inc. was founded in 1979 and is headquartered in Coral Gables, Florida.

About Carter Bankshares (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.

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