Regions Financial (NYSE:RF – Get Rating) and Community Bank System (NYSE:CBU – Get Rating) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.
This is a breakdown of recent ratings and recommmendations for Regions Financial and Community Bank System, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Community Bank System||1||2||1||0||2.00|
Regions Financial presently has a consensus target price of $25.00, suggesting a potential upside of 39.74%. Community Bank System has a consensus target price of $64.50, suggesting a potential upside of 19.80%. Given Regions Financial’s stronger consensus rating and higher probable upside, research analysts clearly believe Regions Financial is more favorable than Community Bank System.
Institutional and Insider Ownership
Regions Financial pays an annual dividend of $0.80 per share and has a dividend yield of 4.5%. Community Bank System pays an annual dividend of $1.76 per share and has a dividend yield of 3.3%. Regions Financial pays out 35.2% of its earnings in the form of a dividend. Community Bank System pays out 50.9% 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. Regions Financial has increased its dividend for 2 consecutive years and Community Bank System has increased its dividend for 13 consecutive years. Regions Financial is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares Regions Financial and Community Bank System’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Community Bank System||26.77%||11.94%||1.25%|
Volatility & Risk
Regions Financial has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500. Comparatively, Community Bank System has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500.
Earnings & Valuation
This table compares Regions Financial and Community Bank System’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Regions Financial||$7.53 billion||2.22||$2.25 billion||$2.27||7.88|
|Community Bank System||$702.45 million||4.12||$188.08 million||$3.46||15.56|
Regions Financial has higher revenue and earnings than Community Bank System. Regions Financial is trading at a lower price-to-earnings ratio than Community Bank System, indicating that it is currently the more affordable of the two stocks.
Regions Financial beats Community Bank System on 12 of the 17 factors compared between the two stocks.
About Regions Financial
Regions Financial Corp. operates as a bank holding company. It provides traditional commercial, retail and mortgage banking services, as well as other financial services in the fields of investment banking, asset management, trust, mutual funds, securities brokerage, insurance and other financing. The firm operates through the following segments: Corporate Bank, Consumer Bank, Wealth Management, and Other. The Corporate Bank segment represents the commercial banking functions including commercial and industrial, commercial real estate and investor real estate lending. The Consumer Bank segment holds the branch network, including consumer banking products and services related to residential first mortgages, home equity lines and loans, small business loans, indirect loans, consumer credit cards and other consumer loans. The Wealth Management segment offers individuals, businesses, governmental institutions and non-profit entities a range of solutions to help protect, grow and transfer wealth. The Other segment includes the company’s treasury function, the securities portfolio, wholesale funding activities, interest rate risk management activities and other corporate functions that a
About Community Bank System
Community Bank System, Inc. is a holding company, which engages in the provision of retail, business, and municipal banking services. It operates through the following segments: Banking, Employee Benefit Services, and All Other. The Banking segment offers an array of lending and depository-related products and services to individuals, businesses, and municipal enterprises. The Employee Benefit Services segment provides employee benefit trust services, collective investment funds, fund administration, transfer agency, retirement plan and VEBA/HRA, and health savings account plan administration services, actuarial services, and healthcare consulting services. The All Other segment consists of wealth management and insurance services. The company was founded on April 15, 1983 and is headquartered in DeWitt, NY.
Receive News & Ratings for Regions Financial Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Regions Financial and related companies with MarketBeat.com's FREE daily email newsletter.