1st Source (NASDAQ:SRCE) and Citizens & Northern (NASDAQ:CZNC) Head-To-Head Comparison

Citizens & Northern (NASDAQ:CZNC) and 1st Source (NASDAQ:SRCE) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, risk, profitability, valuation and dividends.

Insider & Institutional Ownership

30.8% of Citizens & Northern shares are owned by institutional investors. Comparatively, 74.4% of 1st Source shares are owned by institutional investors. 4.5% of Citizens & Northern shares are owned by company insiders. Comparatively, 19.5% of 1st Source shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

Citizens & Northern pays an annual dividend of $1.12 per share and has a dividend yield of 5.6%. 1st Source pays an annual dividend of $1.44 per share and has a dividend yield of 2.4%. Citizens & Northern pays out 66.3% of its earnings in the form of a dividend. 1st Source pays out 26.9% 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. 1st Source has increased its dividend for 37 consecutive years.

Analyst Ratings

This is a summary of recent recommendations and price targets for Citizens & Northern and 1st Source, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Citizens & Northern	0	1	0	0	2.00
1st Source	0	1	1	0	2.50

1st Source has a consensus target price of $70.75, suggesting a potential upside of 17.12%. Given 1st Source’s stronger consensus rating and higher possible upside, analysts plainly believe 1st Source is more favorable than Citizens & Northern.

Profitability

This table compares Citizens & Northern and 1st Source’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Citizens & Northern	16.50%	9.71%	1.00%
1st Source	23.10%	11.92%	1.54%

Volatility & Risk

Citizens & Northern has a beta of 0.44, indicating that its stock price is 56% less volatile than the S&P 500. Comparatively, 1st Source has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500.

Earnings and Valuation

This table compares Citizens & Northern and 1st Source”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Citizens & Northern	$106.51 million	2.91	$25.96 million	$1.69	11.86
1st Source	$387.12 million	3.83	$132.62 million	$5.36	11.27

1st Source has higher revenue and earnings than Citizens & Northern. 1st Source is trading at a lower price-to-earnings ratio than Citizens & Northern, indicating that it is currently the more affordable of the two stocks.

Summary

1st Source beats Citizens & Northern on 15 of the 17 factors compared between the two stocks.

About Citizens & Northern

Citizens & Northern Corp. is a holding company, which engages in community banking. It provides a full range of banking and mortgage services to individual and corporate customers in North Central Pennsylvania and Southern New York State. The firm’s lending products include mortgage loans, commercial loans, and consumer loans. Its deposit products include various types of checking accounts, passbook and statement savings, money market accounts, interest checking accounts, individual retirement accounts, and certificates of deposit. The company was founded in 1864 and is headquartered in Wellsboro, PA.

About 1st Source

1st Source Corporation operates as the bank holding company for 1st Source Bank that provides commercial and consumer banking services, trust and wealth advisory services, and insurance products to individual and business clients. Its consumer banking services include checking and savings accounts; certificates of deposit; individual retirement accounts; online and mobile banking products; consumer loans, real estate mortgage loans, and home equity lines of credit; and financial planning, financial literacy, and other consultative services, as well as debit and credit cards. The company also offers commercial, small business, agricultural, and real estate loans for general corporate purposes, including financing for industrial and commercial properties, equipment, inventories, accounts receivables, and renewable energy and acquisition financing; and commercial leasing, treasury management, and retirement planning services. In addition, it provides trust, investment, agency, and custodial services comprising administration of estates and personal trusts, as well as management of investment accounts for individuals, employee benefit plans, and charitable foundations. Further, the company offers equipment loan and lease products for construction equipment, new and pre-owned aircraft, auto and light trucks, and medium and heavy duty trucks; and finances construction equipment, aircrafts, medium and heavy duty trucks, step vans, vocational work trucks, motor coaches, shuttle buses, funeral cars, automobiles, and other equipment. Additionally, it provides corporate and personal property, casualty, and individual and group health and life insurance products and services. 1st Source Corporation was founded in 1863 and is headquartered in South Bend, Indiana.