Financial Review: Renasant (NASDAQ:RNST) vs. Citizens & Northern (NASDAQ:CZNC)

Renasant (NASDAQ:RNSTGet Rating) and Citizens & Northern (NASDAQ:CZNCGet Rating) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, institutional ownership, earnings, analyst recommendations, dividends and profitability.

Earnings & Valuation

This table compares Renasant and Citizens & Northern’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Renasant $695.67 million 2.70 $175.89 million $2.68 12.53
Citizens & Northern $110.36 million 3.47 $30.55 million $1.85 13.38

Renasant has higher revenue and earnings than Citizens & Northern. Renasant is trading at a lower price-to-earnings ratio than Citizens & Northern, indicating that it is currently the more affordable of the two stocks.

Dividends

Renasant pays an annual dividend of $0.88 per share and has a dividend yield of 2.6%. Citizens & Northern pays an annual dividend of $1.12 per share and has a dividend yield of 4.5%. Renasant pays out 32.8% of its earnings in the form of a dividend. Citizens & Northern pays out 60.5% 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. Citizens & Northern has increased its dividend for 1 consecutive years. Citizens & Northern is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

76.6% of Renasant shares are held by institutional investors. Comparatively, 28.3% of Citizens & Northern shares are held by institutional investors. 2.9% of Renasant shares are held by company insiders. Comparatively, 4.1% of Citizens & Northern shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Renasant and Citizens & Northern’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Renasant 23.77% 7.10% 0.93%
Citizens & Northern 26.20% 10.23% 1.23%

Analyst Recommendations

This is a summary of current ratings and target prices for Renasant and Citizens & Northern, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Renasant 0 1 2 0 2.67
Citizens & Northern 0 0 0 0 N/A

Renasant currently has a consensus price target of $35.63, suggesting a potential upside of 6.06%. Given Renasant’s higher possible upside, analysts plainly believe Renasant is more favorable than Citizens & Northern.

Volatility and Risk

Renasant has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500. Comparatively, Citizens & Northern has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500.

About Renasant

(Get Rating)

Renasant Corporation operates as a bank holding company for Renasant Bank that provides a range of financial, wealth management, fiduciary, and insurance services to retail and commercial customers. It operates through three segments: Community Banks, Insurance, and Wealth Management. The Community Banks segment offers checking and savings accounts, business and personal loans, asset-based lending, and equipment leasing services, as well as safe deposit and night depository facilities. It also provides commercial, financial, and agricultural loans; equipment financing and leasing; real estate-1-4 family mortgage; real estate-commercial mortgage; real estate-construction loans for the construction of single family residential properties, multi-family properties, and commercial projects; installment loans to individuals; and interim construction loans, as well as automated teller machine (ATM), online and mobile banking, call center, and treasury management services. The Insurance segment provides insurance agency services, such as commercial and personal insurance products through insurance carriers. The Wealth Management segment offers a range of wealth management and fiduciary services, including administration and management of trust accounts, such as personal and corporate benefit accounts, and custodial accounts, as well as accounting and money management for trust accounts; annuities, mutual funds, and other investment services through a third party broker-dealer; and qualified retirement plans, IRAs, employee benefit plans, personal trusts, and estates. As of December 31, 2021, the company operated a network of 189 banking, lending, and mortgage offices located in Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, and Tennessee; 150 full-service branches and 11 limited-service branches; 173 ATMs; and 38 interactive teller machines. Renasant Corporation was founded in 1904 and is headquartered in Tupelo, Mississippi.

About Citizens & Northern

(Get Rating)

Citizens & Northern Corporation operates as the bank holding company for Citizens & Northern Bank that provides a range of banking and mortgage services to individual and corporate customers. The company offers lending products include commercial, mortgage, and consumer loans, as well as specialized instruments, such as commercial letters-of-credit; and deposit products, including various types of checking accounts, passbook and statement savings accounts, money market accounts, interest checking accounts, individual retirement accounts, and certificates of deposits. It also offers wealth management services, including administration of trusts and estates, retirement plans, and other employee benefit plans, and investment management services; and a range of personal and commercial insurance products; mutual funds, annuities, educational savings accounts, and other investment products through registered agents. In addition, the company reinsures credit and mortgage, life and accident, and health insurance products. As of December 31, 2021, it had 31 branch offices, including 23 in the Northern tier/Northcentral region of Pennsylvania, 2 in the Southern tier of New York State, 4 in Southeastern Pennsylvania, and 2 in Southcentral Pennsylvania, as well as a lending office in Elmira, New York. The company was founded in 1864 and is based in Wellsboro, Pennsylvania.

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