Critical Comparison: Chester Bancorp (OTCMKTS:CNBA) versus Associated Banc (NYSE:ASB)

Associated Banc (NYSE:ASB) and Chester Bancorp (OTCMKTS:CNBA) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, earnings, institutional ownership, analyst recommendations and dividends.

Profitability

This table compares Associated Banc and Chester Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Associated Banc	5.79%	8.86%	0.91%
Chester Bancorp	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Associated Banc and Chester Bancorp, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Associated Banc	0	7	2	0	2.22
Chester Bancorp	0	0	0	0	0.00

Associated Banc presently has a consensus price target of $27.78, indicating a potential upside of 6.10%. Given Associated Banc’s stronger consensus rating and higher possible upside, analysts clearly believe Associated Banc is more favorable than Chester Bancorp.

Dividends

Associated Banc pays an annual dividend of $0.92 per share and has a dividend yield of 3.5%. Chester Bancorp pays an annual dividend of $0.68 per share and has a dividend yield of 15.7%. Associated Banc pays out 119.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Associated Banc has increased its dividend for 13 consecutive years.

Earnings & Valuation

This table compares Associated Banc and Chester Bancorp”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Associated Banc	$2.39 billion	1.82	$123.14 million	$0.77	34.00
Chester Bancorp	N/A	N/A	N/A	N/A	N/A

Associated Banc has higher revenue and earnings than Chester Bancorp.

Risk & Volatility

Associated Banc has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500. Comparatively, Chester Bancorp has a beta of 0.44, meaning that its stock price is 56% less volatile than the S&P 500.

Insider & Institutional Ownership

83.0% of Associated Banc shares are held by institutional investors. 1.1% of Associated Banc shares are held by company insiders. Comparatively, 38.8% of Chester Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Associated Banc beats Chester Bancorp on 10 of the 13 factors compared between the two stocks.

About Associated Banc

Associated Banc-Corp, a bank holding company, provides various banking and nonbanking products to individuals and businesses in Wisconsin, Illinois, and Minnesota. The company offers lending solutions, including commercial loans and lines of credit, commercial real estate financing, construction loans, letters of credit, leasing, asset based lending and equipment finance, loan syndications products, residential mortgages, home equity loans and lines of credit, personal and installment loans, auto finance and business loans, and business lines of credit. It also provides deposit and cash management solutions, such as commercial checking and interest-bearing deposit products, cash vault and night depository services, liquidity solutions, payables and receivables solutions, and information services; specialized financial services, such as interest rate risk management and foreign exchange solutions; fiduciary services, such as administration of pension, profit-sharing and other employee benefit plans, fiduciary and corporate agency services, and institutional asset management services; and investable funds solutions, including savings, money market deposit accounts, IRA accounts, CDs, fixed and variable annuities, full-service, discount, and online investment brokerage; investment advisory services; and trust and investment management accounts. In addition, the company offers deposit and transactional solutions, including checking, credit, debit and pre-paid cards, online banking and bill pay; and money transfer services. Associated Banc-Corp was founded in 1861 and is headquartered in Green Bay, Wisconsin.

About Chester Bancorp

Chester Bancorp, Inc. operates as the holding company for Chester National Bank that provides various banking products and services to individuals and businesses in Chester, Illinois. It offers checking accounts, such as regular checking, student checking, golden checking, and club checking accounts; savings accounts, including statement savings, Christmas club, and money market accounts; and certificate of deposits and individual retirement accounts. The company also provides loans comprising mortgage, construction, lot, home equity, consumer, and business loans; and reorder check services. It operates two full service offices in Sparta, Illinois; and Perryville, Missouri. Chester Bancorp, Inc. was founded in 1996 and is based in Chester, Illinois.