Critical Contrast: Pathward Financial (NASDAQ:CASH) & Camden National (NASDAQ:CAC)

Pathward Financial (NASDAQ:CASH) and Camden National (NASDAQ:CAC) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, institutional ownership, risk and dividends.

Profitability

This table compares Pathward Financial and Camden National’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pathward Financial	22.95%	22.76%	2.63%
Camden National	17.46%	11.39%	1.07%

Dividends

Pathward Financial pays an annual dividend of $0.20 per share and has a dividend yield of 0.2%. Camden National pays an annual dividend of $1.68 per share and has a dividend yield of 3.3%. Pathward Financial pays out 2.4% of its earnings in the form of a dividend. Camden National pays out 43.7% 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.

Volatility and Risk

Pathward Financial has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500. Comparatively, Camden National has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500.

Insider and Institutional Ownership

92.7% of Pathward Financial shares are owned by institutional investors. Comparatively, 77.4% of Camden National shares are owned by institutional investors. 1.4% of Pathward Financial shares are owned by insiders. Comparatively, 1.7% of Camden National shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Pathward Financial and Camden National”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pathward Financial	$851.49 million	2.39	$185.87 million	$8.18	11.41
Camden National	$248.29 million	3.45	$65.16 million	$3.84	13.17

Pathward Financial has higher revenue and earnings than Camden National. Pathward Financial is trading at a lower price-to-earnings ratio than Camden National, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Pathward Financial and Camden National, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pathward Financial	0	0	3	0	3.00
Camden National	0	5	0	0	2.00

Pathward Financial currently has a consensus target price of $97.00, indicating a potential upside of 3.89%. Camden National has a consensus target price of $49.00, indicating a potential downside of 3.09%. Given Pathward Financial’s stronger consensus rating and higher probable upside, analysts plainly believe Pathward Financial is more favorable than Camden National.

Summary

Pathward Financial beats Camden National on 12 of the 16 factors compared between the two stocks.

About Pathward Financial

Pathward Financial, Inc. operates as the bank holding company for Pathward, National Association that provides various banking products and services in the United States. The company operates through three segments: Consumer, Commercial, and Corporate Services/Other. It offers demand deposit accounts, savings accounts, and money market savings accounts. The company also provides commercial finance product comprising term lending, asset-based lending, factoring, lease financing, insurance premium finance, government guaranteed lending, and other commercial finance products; consumer credit products; other consumer financing services; tax services, which includes short-term refund advance loans and short-term electronic return originator advance loans; and warehouse financing services. In addition, it issues prepaid cards; and offers payment solutions, such as acceptance, processing, and settlement of credit card and debit card payments. The company was formerly known as Meta Financial Group, Inc. and changed its name to Pathward Financial, Inc. in July 2022. Pathward Financial, Inc. was founded in 1954 and is based in Sioux Falls, South Dakota.

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.