Financial Review: Citizens Financial Services (NASDAQ:CZFS) & Renasant (NASDAQ:RNST)

Citizens Financial Services (NASDAQ:CZFSGet Free Report) and Renasant (NASDAQ:RNSTGet Free Report) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their risk, profitability, earnings, dividends, analyst recommendations, valuation and institutional ownership.

Dividends

Citizens Financial Services pays an annual dividend of $1.96 per share and has a dividend yield of 3.8%. Renasant pays an annual dividend of $0.88 per share and has a dividend yield of 2.7%. Citizens Financial Services pays out 50.1% of its earnings in the form of a dividend. Renasant pays out 34.1% 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. Citizens Financial Services has increased its dividend for 3 consecutive years. Citizens Financial Services is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

23.2% of Citizens Financial Services shares are owned by institutional investors. Comparatively, 76.5% of Renasant shares are owned by institutional investors. 6.3% of Citizens Financial Services shares are owned by company insiders. Comparatively, 2.9% of Renasant shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Citizens Financial Services and Renasant’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Citizens Financial Services $91.87 million 2.66 $17.81 million $3.91 13.30
Renasant $910.39 million 2.00 $144.68 million $2.58 12.54

Renasant has higher revenue and earnings than Citizens Financial Services. Renasant is trading at a lower price-to-earnings ratio than Citizens Financial Services, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Citizens Financial Services has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500. Comparatively, Renasant has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500.

Profitability

This table compares Citizens Financial Services and Renasant’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Citizens Financial Services 12.83% 11.46% 1.03%
Renasant 15.94% 7.98% 1.03%

Analyst Recommendations

This is a summary of recent recommendations for Citizens Financial Services and Renasant, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Citizens Financial Services 0 1 0 0 2.00
Renasant 0 5 0 0 2.00

Renasant has a consensus price target of $31.50, indicating a potential downside of 2.66%. Given Renasant’s higher possible upside, analysts plainly believe Renasant is more favorable than Citizens Financial Services.

About Citizens Financial Services

(Get Free Report)

Citizens Financial Services, Inc. operates as the bank holding company for First Citizens Community Bank that provides various banking products and services for individual, business, governmental, and institutional customers. The company accepts various deposit products, such as checking, savings, and time deposit accounts. Its loan products include residential, commercial, and agricultural real estate loans; commercial and industrial loans; state and political subdivision loans; and consumer loans, as well as various other specialized financial services. The company also provides professional trust administration, investment management services, estate planning and administration, custody of securities, and individual retirement accounts. In addition, it offers brokerage and financial planning services, as well as assistance in various oil and gas leasing matters; and provides mutual funds, annuities, and health and life insurance products. Citizens Financial Services, Inc. was incorporated in 1984 and is headquartered in Mansfield, Pennsylvania.

About Renasant

(Get Free Report)

Renasant Corporation operates as a bank holding company for Renasant Bank that provides a range of financial, wealth management, fiduciary, and insurance services to retail and commercial customers. It operates through three segments: Community Banks, Insurance, and Wealth Management. The Community Banks segment offers checking and savings accounts, business and personal loans, asset-based lending, and factoring equipment leasing services, as well as safe deposit and night depository facilities. It also provides commercial, financial, and agricultural loans; equipment financing and leasing; real estate1-4 family mortgage; real estatecommercial mortgage; real estateconstruction loans for the construction of single family residential properties, multi-family properties, and commercial projects; installment loans to individuals; and interim construction loans, as well as automated teller machine (ATM), online and mobile banking, call center, and treasury management services. The Insurance segment provides insurance agency services, such as commercial and personal insurance products through insurance carriers. The Wealth Management segment offers a range of wealth management and fiduciary services, including administration and management of trust accounts, such as personal and corporate benefit accounts, and custodial accounts, as well as accounting and money management for trust accounts; annuities, mutual funds, and other investment services through a third party broker-dealer; administrative and compliance services; and qualified retirement plans, IRAs, employee benefit plans, personal trusts, and estates. Renasant Corporation was founded in 1904 and is headquartered in Tupelo, Mississippi.

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