Community Trust Bancorp (NASDAQ:CTBI) vs. Benchmark Bankshares (OTCMKTS:BMBN) Financial Survey

Community Trust Bancorp (NASDAQ:CTBI) and Benchmark Bankshares (OTCMKTS:BMBN) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their profitability, valuation, dividends, earnings, analyst recommendations, institutional ownership and risk.

Insider and Institutional Ownership

60.2% of Community Trust Bancorp shares are owned by institutional investors. Comparatively, 3.2% of Benchmark Bankshares shares are owned by institutional investors. 4.3% of Community Trust Bancorp shares are owned by company insiders. Comparatively, 14.0% of Benchmark Bankshares 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 Community Trust Bancorp and Benchmark Bankshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Community Trust Bancorp	23.33%	11.77%	1.47%
Benchmark Bankshares	N/A	N/A	N/A

Dividends

Community Trust Bancorp pays an annual dividend of $2.12 per share and has a dividend yield of 3.6%. Benchmark Bankshares pays an annual dividend of $0.88 per share and has a dividend yield of 2.8%. Community Trust Bancorp pays out 41.7% of its earnings in the form of a dividend. Community Trust Bancorp has increased its dividend for 44 consecutive years. Community Trust Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of current recommendations for Community Trust Bancorp and Benchmark Bankshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Community Trust Bancorp	0	0	2	0	3.00
Benchmark Bankshares	0	0	0	0	0.00

Community Trust Bancorp currently has a consensus price target of $64.50, suggesting a potential upside of 10.50%. Given Community Trust Bancorp’s stronger consensus rating and higher probable upside, research analysts clearly believe Community Trust Bancorp is more favorable than Benchmark Bankshares.

Earnings & Valuation

This table compares Community Trust Bancorp and Benchmark Bankshares”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Community Trust Bancorp	$264.82 million	3.99	$82.81 million	$5.08	11.49
Benchmark Bankshares	$73.53 million	1.90	$15.85 million	N/A	N/A

Community Trust Bancorp has higher revenue and earnings than Benchmark Bankshares.

Volatility & Risk

Community Trust Bancorp has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500. Comparatively, Benchmark Bankshares has a beta of 0.16, indicating that its stock price is 84% less volatile than the S&P 500.

Summary

Community Trust Bancorp beats Benchmark Bankshares on 13 of the 15 factors compared between the two stocks.

About Community Trust Bancorp

Community Trust Bancorp, Inc. operates as the bank holding company for Community Trust Bank, Inc. that engages in the provision of commercial and personal banking, and trust and wealth management services to small and mid-sized communities in eastern, northeastern, central, and south-central Kentucky, as well as southern West Virginia, and northeastern Tennessee. The company accepts time and demand deposits, checking accounts, savings accounts and savings certificates, individual retirement accounts and Keogh plans, and money market accounts. Its loan portfolio includes commercial, construction, mortgage, and personal loans; lease-financing, lines of credit, revolving lines of credit, and term loans, as well as other specialized loans, including asset-based financing; residential and commercial real estate loans; and consumer loans. The company also provides cash management, renting safe deposit boxes, and funds transfer services; issues letters of credit; and acts as a trustee of personal trusts, executor of estates, trustee for employee benefit trusts, and paying agent for bond and stock issues, as well as an investment agent and depositor for securities. In addition, it offers securities brokerage services; debit cards; annuity and life insurance products; and repurchase agreements, as well as mobile, internet banking, and e-statement services. The company was founded in 1903 and is headquartered in Pikeville, Kentucky.

About Benchmark Bankshares

Benchmark Bankshares, Inc. operates as the holding company for Benchmark Community Bank that provides various banking products and services in the United States. The company accepts various deposits, such as checking, saving, commercial services, and youth accounts. Its loan products include personal, mortgage, other real estate, business, auto, and student loans. The company also offers credit and debit cards; wealth management services comprising financial solutions, financial and retirement planning, and portfolio management, as well as estate, charitable giving, and trust services; and reorder checks, safe deposit boxes, wire transfers, bill pay, and internet and mobile banking services. The company was founded in 1971 and is based in Kenbridge, Virginia.