Banc of California (NYSE:BANC) and Community Bank System (NYSE:CBU) Financial Comparison

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Banc of California (NYSE: BANC – Get Rating) and Community Bank System (NYSE: CBU – Get Rating) are both finance companies, but which company is better? We’ll compare the two companies based on their dividend strength, earnings, analyst recommendations, institutional ownership, risk, profitability and valuation.

Dividends

Banc of California pays an annual dividend of $0.24 per share and has a dividend yield of 1.3%. Community Bank System pays an annual dividend of $1.72 per share and has a dividend yield of 2.5%. Banc of California pays 24.5% of its earnings as a dividend. Community Bank System pays 49.4% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Community Bank System has increased its dividend for 12 consecutive years. Community Bank System is clearly the best dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and insider ownership

92.7% of Banc of California shares are held by institutional investors. By comparison, 69.6% of Community Bank System shares are held by institutional investors. 9.9% of Banc of California shares are held by insiders. By comparison, 1.6% of Community Bank System shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers, and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares the net margins, return on equity, and return on assets of Banc of California and Community Bank System.

Net margins Return on equity return on assets
California bench 20.07% 9.34% 0.88%
Community banking system 29.94% 9.28% 1.26%

Volatility and risk

Banc of California has a beta of 1.5, indicating that its stock price is 50% more volatile than the S&P 500. In comparison, Community Bank System has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Banc of California and Community Bank System, as reported by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
California bench 0 2 0 0 2.00
Community banking system 0 0 0 0 N / A

Banc of California currently has a consensus price target of $20.50, indicating a potential upside of 13.32%. Given Banc of California’s possible higher upside, stock analysts clearly believe that Banc of California is more favorable than Community Bank System.

Valuation and benefits

This chart compares revenue, earnings per share (EPS), and valuation of Banc of California and Community Bank System.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
California bench $310.59 million 3.65 $62.35 million $0.98 6:46 p.m.
Community banking system $633.66 million 5.77 $189.69 million $3.48 7:50 p.m.

Community Bank System has higher revenue and profit than Banc of California. Banc of California trades at a lower price-to-earnings ratio than Community Bank System, indicating that it is currently the more affordable of the two stocks.

Summary

Community Bank System beats Banc of California on 9 out of 15 factors compared between the two stocks.

Banc of California Company Profile (Get an evaluation)

Banc of California, Inc. operates as a bank holding company for Banc of California, a national association that provides banking products and services in the United States. The Company offers deposit products, including interest-bearing and non-interest-bearing checking, savings, money market, retirement and current accounts, as well as certificates of deposit. It also offers various commercial and consumer loan products, such as commercial and industrial loans; commercial and multi-family real estate loans; building loans; single family residential mortgages; warehouse and indirect/direct leveraged loans; home equity lines of credit; small business administration loans; and other consumer loans. In addition, the Company offers automated bill payment, cash and cash management, foreign exchange, card payment, remote and mobile deposit capture, automated clearing house issuance, wire transfer banking, direct deposit and internet banking; and main sight accounts, interest rate swaps and safe deposit boxes. In addition, it invests in secured loan obligations, agency securities, municipal bonds, agency residential mortgage-backed securities and corporate debt securities. As of December 31, 2020, the company operated 29 full-service branches in Southern California. The company was formerly known as First PacTrust Bancorp, Inc. and changed its name to Banc of California, Inc. in July 2013. Banc of California, Inc. was founded in 1941 and is headquartered in Santa Ana , in California.

Community Banking System Company Profile (Get an evaluation)

Community banking logoCommunity Bank System, Inc. is a holding company that provides personal, business and municipal banking services. It operates through the following segments: Banking, Employee Benefits Services and All Others. The Banking segment offers a range of products and services related to loans and deposits to individuals, businesses and municipal enterprises. The Employee Benefit Services segment provides employee benefit trust services, collective investment funds, fund administration, transfer agency, pension plan and VEBA/HRA, and management services. administration of health savings account plans, actuarial services and health care consulting services. The All Others segment includes wealth management and insurance services. The company was founded on April 15, 1983 and is headquartered in DeWitt, NY.



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