Financial Contrast: Community Trust Bancorp (NASDAQ:CTBI) and First Financial Bankshares (NASDAQ:FFIN)

First Financial Bankshares (NASDAQ:FFIN) and Community Trust Bancorp (NASDAQ:CTBI) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, risk, dividends, earnings and valuation.

Risk and Volatility

First Financial Bankshares has a beta of 0.79, suggesting that its stock price is 21% less volatile than the S&P 500. Comparatively, Community Trust Bancorp has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500.

Dividends

First Financial Bankshares pays an annual dividend of $0.72 per share and has a dividend yield of 2.1%. Community Trust Bancorp pays an annual dividend of $1.88 per share and has a dividend yield of 4.1%. First Financial Bankshares pays out 51.4% of its earnings in the form of a dividend. Community Trust Bancorp pays out 43.6% 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. First Financial Bankshares has raised its dividend for 13 consecutive years and Community Trust Bancorp has raised its dividend for 44 consecutive years. Community Trust Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares First Financial Bankshares and Community Trust Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First Financial Bankshares	29.13%	14.01%	1.54%
Community Trust Bancorp	21.85%	11.27%	1.35%

Valuation and Earnings

This table compares First Financial Bankshares and Community Trust Bancorp’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First Financial Bankshares	$492.19 million	10.10	$198.98 million	$1.40	24.86
Community Trust Bancorp	$235.45 million	3.48	$78.00 million	$4.31	10.56

First Financial Bankshares has higher revenue and earnings than Community Trust Bancorp. Community Trust Bancorp is trading at a lower price-to-earnings ratio than First Financial Bankshares, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and target prices for First Financial Bankshares and Community Trust Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First Financial Bankshares	0	3	0	0	2.00
Community Trust Bancorp	0	0	2	0	3.00

First Financial Bankshares currently has a consensus price target of $35.33, indicating a potential upside of 1.53%. Community Trust Bancorp has a consensus price target of $48.00, indicating a potential upside of 5.47%. Given Community Trust Bancorp’s stronger consensus rating and higher probable upside, analysts clearly believe Community Trust Bancorp is more favorable than First Financial Bankshares.

Insider & Institutional Ownership

69.8% of First Financial Bankshares shares are held by institutional investors. Comparatively, 60.2% of Community Trust Bancorp shares are held by institutional investors. 4.2% of First Financial Bankshares shares are held by insiders. Comparatively, 4.3% of Community Trust Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

First Financial Bankshares beats Community Trust Bancorp on 9 of the 17 factors compared between the two stocks.

About First Financial Bankshares

First Financial Bankshares, Inc., through its subsidiaries, provides commercial banking products and services in Texas. The company offers checking, savings and time deposits; automated teller machines, drive-in, and night deposit services; safe deposit facilities, remote deposit capture, internet banking, mobile banking, payroll cards, funds transfer, and performing other customary commercial banking services; securities brokerage services; and trust and wealth management services, including wealth management, estates administration, oil and gas management, testamentary trusts, revocable and irrevocable trusts, and agency accounts. It also provides commercial and industrial, municipal, agricultural, construction and development, farm, residential, and consumer auto and non-auto, as well as non-owner occupied and owner occupied commercial real estate loans. In addition, the company offers advisory and specialized services related to asset management, investing, purchasing, advertising, public relations, and technology services. First Financial Bankshares, Inc. was founded in 1890 and is headquartered in Abilene, Texas.

About Community Trust Bancorp

Community Trust Bancorp, Inc. operates as the bank holding company for Community Trust Bank, Inc. that engages in the provision of commercial and personal banking, and trust and wealth management services to small and mid-sized communities in eastern, northeastern, central, and south-central Kentucky, as well as southern West Virginia, and northeastern Tennessee. The company accepts time and demand deposits, checking accounts, savings accounts and savings certificates, individual retirement accounts and Keogh plans, and money market accounts. Its loan portfolio includes commercial, construction, mortgage, and personal loans; lease-financing, lines of credit, revolving lines of credit, and term loans, as well as other specialized loans, including asset-based financing; residential and commercial real estate loans; and consumer loans. The company also provides cash management, renting safe deposit boxes, and funds transfer services; issues letters of credit; and acts as a trustee of personal trusts, executor of estates, trustee for employee benefit trusts, and paying agent for bond and stock issues, as well as an investment agent and depositor for securities. In addition, it offers securities brokerage services; debit cards; annuity and life insurance products; and repurchase agreements, as well as mobile, internet banking, and e-statement services. The company was founded in 1903 and is headquartered in Pikeville, Kentucky.