Camden National (NASDAQ:CAC – Get Free Report) and Meridian Bank (NASDAQ:MRBK – Get 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 institutional ownership, earnings, valuation, profitability, dividends, risk and analyst recommendations.
Dividends
Camden National pays an annual dividend of $1.68 per share and has a dividend yield of 4.6%. Meridian Bank pays an annual dividend of $0.50 per share and has a dividend yield of 3.5%. Camden National pays out 53.2% of its earnings in the form of a dividend. Meridian Bank pays out 31.1% 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.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Camden National and Meridian Bank, as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Camden National | 0 | 3 | 2 | 0 | 2.40 |
Meridian Bank | 0 | 1 | 2 | 0 | 2.67 |
Volatility & Risk
Camden National has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500. Comparatively, Meridian Bank has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500.
Profitability
This table compares Camden National and Meridian Bank’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Camden National | 14.77% | 10.19% | 0.94% |
Meridian Bank | 9.01% | 10.62% | 0.75% |
Insider & Institutional Ownership
77.4% of Camden National shares are held by institutional investors. Comparatively, 58.6% of Meridian Bank shares are held by institutional investors. 1.7% of Camden National shares are held by insiders. Comparatively, 14.4% of Meridian Bank shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Camden National and Meridian Bank”s top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Camden National | $294.10 million | 2.12 | $53.00 million | $3.16 | 11.64 |
Meridian Bank | $197.37 million | 0.82 | $16.35 million | $1.61 | 8.92 |
Camden National has higher revenue and earnings than Meridian Bank. Meridian Bank is trading at a lower price-to-earnings ratio than Camden National, indicating that it is currently the more affordable of the two stocks.
Summary
Camden National beats Meridian Bank on 10 of the 15 factors compared between the two stocks.
About Camden National
Camden National Corporation operates as the bank holding company for Camden National Bank that provides various commercial and consumer banking products and services for consumer, institutional, municipal, non-profit, and commercial customers in Maine, New Hampshire, and Massachusetts. The company accepts checking, savings, time, and brokered deposits, as well as deposits with the certificate of deposit account registry system. Its loan products include non-owner-occupied commercial estate loans, owner-occupied commercial real estate loans, unsecured fully-guaranteed commercial loans backed by the small business administration, loans secured by one-to four-family properties, and consumer and home equity loans. The company also provides brokerage and insurance services through its financial offerings consisting of college, retirement, estate planning, mutual funds, strategic asset management accounts, and variable and fixed annuities. Further, it offers a range of fiduciary and asset management, wealth management, investment management, financial planning, and trustee services. Camden National Corporation was founded in 1875 and is headquartered in Camden, Maine.
About Meridian Bank
Meridian Corporation operates as the holding company for Meridian Bank that provides commercial banking products and services in Pennsylvania, New Jersey, Delaware, Florida, and Maryland. The company offers various deposit products, such as demand non-interest bearing, demand interest bearing, savings accounts, money market accounts, and time deposits. It also provides commercial and industrial loans comprising business lines of credit, term loans, small business lending, lease financing, shared national credits, and other financing; commercial real estate, and land development and construction loans for residential and commercial projects; and consumer and home equity lending, private banking, merchant, and title and land settlement services. In addition, the company operates and originates mortgage loans for 1-4 family dwellings; and offers real estate holding, investment advisory, and equipment leasing services, as well as financial planning and wealth management services. Meridian Corporation was incorporated in 2004 and is headquartered in Malvern, Pennsylvania.
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