Head to Head Analysis: Community Investors Bancorp (OTCMKTS:CIBN) and West Bancorporation (NASDAQ:WTBA)

Community Investors Bancorp (OTCMKTS:CIBN) and West Bancorporation (NASDAQ:WTBA) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, risk, dividends and analyst recommendations.

Earnings and Valuation

This table compares Community Investors Bancorp and West Bancorporation”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Community Investors Bancorp	$17.26 million	N/A	$1.14 million	$1.87	10.16
West Bancorporation	$198.50 million	1.53	$24.05 million	$1.70	10.56

West Bancorporation has higher revenue and earnings than Community Investors Bancorp. Community Investors Bancorp is trading at a lower price-to-earnings ratio than West Bancorporation, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Community Investors Bancorp has a beta of 0.1, suggesting that its share price is 90% less volatile than the S&P 500. Comparatively, West Bancorporation has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500.

Profitability

This table compares Community Investors Bancorp and West Bancorporation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Community Investors Bancorp	7.72%	N/A	N/A
West Bancorporation	14.40%	12.26%	0.72%

Analyst Recommendations

This is a summary of current recommendations for Community Investors Bancorp and West Bancorporation, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Community Investors Bancorp	0	0	0	0	0.00
West Bancorporation	0	1	0	0	2.00

West Bancorporation has a consensus price target of $20.50, indicating a potential upside of 14.14%. Given West Bancorporation’s stronger consensus rating and higher probable upside, analysts clearly believe West Bancorporation is more favorable than Community Investors Bancorp.

Institutional and Insider Ownership

44.3% of West Bancorporation shares are held by institutional investors. 15.8% of Community Investors Bancorp shares are held by company insiders. Comparatively, 4.6% of West Bancorporation shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Community Investors Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 2.1%. West Bancorporation pays an annual dividend of $1.00 per share and has a dividend yield of 5.6%. Community Investors Bancorp pays out 21.4% of its earnings in the form of a dividend. West Bancorporation pays out 58.8% 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.

Summary

West Bancorporation beats Community Investors Bancorp on 11 of the 14 factors compared between the two stocks.

About Community Investors Bancorp

Community Investors Bancorp, Inc. operates as a thrift holding company for First Federal Community Bank of Bucyrus that engages in the provision of banking and financial services to individual and corporate customers in northern Ohio. The company offers deposit accounts, including demand, NOW, checking, savings, money market, Christmas club, health savings, certificates of deposit, time deposit, and individual retirement accounts. It also provides consumer loans, home equity loans, home equity line of credit, auto and RV loans, residential real estate loans, mortgage loans, and construction loans for personal use; and business loans, lines of credit, term loans, ag loans, nonresidential real estate loans, secured loans, credit cards, commercial investment real estate, construction loans, and equipment financing for business use. In addition, the company offers online and mobile banking, bill payments, e-statements, remote deposit capture, cash management, mobile and night deposits, debit cards, overdraft protection, safety deposit boxes, telephone banking, positive pay/check reconciliation, direct deposit, and ACH and payroll services. Community Investors Bancorp, Inc. was founded in 1888 and is based in Bucyrus, Ohio.

About West Bancorporation

West Bancorporation, Inc. operates as the financial holding company provides community banking and trust services to individuals and small- to medium-sized businesses in the United States. It offers deposit services, including checking, savings, and money market accounts, as well as time certificates of deposit. The company also provides loan products comprising commercial real estate loans, construction and land development loans, commercial lines of credit, and commercial term loans; consumer loans, including loans extended to individuals for household, family, and other personal expenditures not secured by real estate; and 1-4 family residential mortgages and home equity loans. In addition, it offers online and mobile banking, treasury management services including cash management, client-generated automated clearing house transactions, remote deposit, and fraud protection services; merchant credit card processing and corporate credit cards; and administration of estates, conservatorships, personal trusts, and agency accounts. The company was founded in 1893 and is headquartered in West Des Moines, Iowa.