Central Plains Bancshares (NASDAQ:CPBI) and 1st Source (NASDAQ:SRCE) Critical Comparison

Central Plains Bancshares (NASDAQ:CPBI) and 1st Source (NASDAQ:SRCE) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Analyst Recommendations

This is a summary of current recommendations for Central Plains Bancshares and 1st Source, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Central Plains Bancshares	0	0	0	0	0.00
1st Source	0	2	1	0	2.33

1st Source has a consensus price target of $72.00, indicating a potential upside of 12.38%. Given 1st Source’s stronger consensus rating and higher possible upside, analysts clearly believe 1st Source is more favorable than Central Plains Bancshares.

Valuation and Earnings

This table compares Central Plains Bancshares and 1st Source”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Central Plains Bancshares	$27.31 million	2.38	$3.65 million	$0.99	15.56
1st Source	$574.21 million	2.74	$132.62 million	$5.71	11.22

1st Source has higher revenue and earnings than Central Plains Bancshares. 1st Source is trading at a lower price-to-earnings ratio than Central Plains Bancshares, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Central Plains Bancshares and 1st Source’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Central Plains Bancshares	13.34%	4.52%	0.76%
1st Source	24.02%	11.94%	1.61%

Institutional & Insider Ownership

24.3% of Central Plains Bancshares shares are owned by institutional investors. Comparatively, 74.5% of 1st Source shares are owned by institutional investors. 8.6% of Central Plains Bancshares shares are owned by company insiders. Comparatively, 19.6% of 1st Source shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Central Plains Bancshares has a beta of 0.15, indicating that its stock price is 85% less volatile than the S&P 500. Comparatively, 1st Source has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500.

Summary

1st Source beats Central Plains Bancshares on 13 of the 14 factors compared between the two stocks.

About Central Plains Bancshares

Central Plains Bancshares, Inc. focuses on providing various banking products and services to retail customers, and small and medium-sized commercial customers in Nebraska, the United States. It offers checking accounts, savings accounts, and certificate of deposit accounts. The company also provides one- to four-family residential mortgage loans secured by properties, as well as commercial real estate loans, commercial and industrial loans, multi-family residential real estate loans, construction and land development loans, agricultural real estate and non-real estate loans, and consumer loans. In addition, it offers electronic banking services, including mobile banking, on-line banking and bill pay, and electronic funds transfer. The company was incorporated in 2023 and is based in Grand Island, Nebraska.

About 1st Source

1st Source Corporation operates as the bank holding company for 1st Source Bank that provides commercial and consumer banking services, trust and wealth advisory services, and insurance products to individual and business clients. Its consumer banking services include checking and savings accounts; certificates of deposit; individual retirement accounts; online and mobile banking products; consumer loans, real estate mortgage loans, and home equity lines of credit; and financial planning, financial literacy, and other consultative services, as well as debit and credit cards. The company also offers commercial, small business, agricultural, and real estate loans for general corporate purposes, including financing for industrial and commercial properties, equipment, inventories, accounts receivables, and renewable energy and acquisition financing; and commercial leasing, treasury management, and retirement planning services. In addition, it provides trust, investment, agency, and custodial services comprising administration of estates and personal trusts, as well as management of investment accounts for individuals, employee benefit plans, and charitable foundations. Further, the company offers equipment loan and lease products for construction equipment, new and pre-owned aircraft, auto and light trucks, and medium and heavy duty trucks; and finances construction equipment, aircrafts, medium and heavy duty trucks, step vans, vocational work trucks, motor coaches, shuttle buses, funeral cars, automobiles, and other equipment. Additionally, it provides corporate and personal property, casualty, and individual and group health and life insurance products and services. 1st Source Corporation was founded in 1863 and is headquartered in South Bend, Indiana.