Carter Bankshares (NASDAQ:CARE – Get Free Report) and Community Bancorp (NASDAQ:CMTV – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, profitability, risk, earnings, institutional ownership, analyst recommendations and dividends.
Volatility and Risk
Carter Bankshares has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500. Comparatively, Community Bancorp has a beta of 0.38, meaning that its stock price is 62% less volatile than the S&P 500.
Profitability
This table compares Carter Bankshares and Community Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Carter Bankshares | 36.79% | 7.46% | 0.73% |
| Community Bancorp | 25.65% | 15.97% | 1.50% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Carter Bankshares | $254.63 million | 2.68 | $31.00 million | $5.81 | 5.29 |
| Community Bancorp | $68.79 million | 3.40 | $16.97 million | $3.29 | 12.71 |
Carter Bankshares has higher revenue and earnings than Community Bancorp. Carter Bankshares is trading at a lower price-to-earnings ratio than Community Bancorp, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and target prices for Carter Bankshares and Community Bancorp, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Carter Bankshares | 0 | 4 | 1 | 0 | 2.20 |
| Community Bancorp | 0 | 0 | 1 | 0 | 3.00 |
Carter Bankshares presently has a consensus price target of $30.75, indicating a potential upside of 0.00%. Given Carter Bankshares’ higher possible upside, analysts clearly believe Carter Bankshares is more favorable than Community Bancorp.
Dividends
Carter Bankshares pays an annual dividend of $0.40 per share and has a dividend yield of 1.3%. Community Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 2.4%. Carter Bankshares pays out 6.9% of its earnings in the form of a dividend. Community Bancorp pays out 30.4% 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.
Insider and Institutional Ownership
41.5% of Carter Bankshares shares are owned by institutional investors. 2.4% of Carter Bankshares shares are owned by company insiders. Comparatively, 6.6% of Community Bancorp 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.
Summary
Carter Bankshares beats Community Bancorp on 8 of the 15 factors compared between the two stocks.
About Carter Bankshares
Carter Bankshares, Inc. operates as the bank holding company for Carter Bank & Trust that provides various banking products and services in the United States. It accepts various deposit products, including checking, savings, retirement, and money market accounts, as well as certificates of deposits. The company also offers commercial loans comprising secured and unsecured loans; consumer loans, such as secured and unsecured loans for financing automobiles, home improvements, education, overdraft protection, and personal investments, as well as residential mortgages; real estate construction, acquisition, commercial, and industrial loans; home equity lines of credit; and credit cards, as well as originates and holds fixed and variable rate mortgage loans. In addition, it provides other banking services that include safe deposit boxes, direct deposit of payroll, and social security checks; online banking products, including online and mobile banking, online account opening, bill pay, e-statement, mobile deposit, digital wallet, and ATM services; title insurance and other financial institution-related products and services; and treasury and corporate cash management services. Carter Bankshares, Inc. was founded in 1974 and is headquartered in Martinsville, Virginia.
About Community Bancorp
Community Bancorp. operates as the bank holding company for Community National Bank that provides a range of retail banking services to residents, businesses, nonprofit organizations, and municipalities. It provides various consumer banking products and services, including checking accounts, savings programs, ATMs, debit/credit cards, and night deposit facilities, as well as online, mobile, and telephone banking. The company’s business banking products and services comprise credit products for various business purposes, including financing for commercial business properties, equipment, inventories, and accounts receivable, as well as letters of credit; and business checking and other deposit accounts, cash management services, repurchase agreements, ACH and wire transfer services, and remote deposit capture. It offers commercial real estate lending products for commercial developers and investors, residential builders and developers, and community development entities, which include credit products to facilitate the purchase of land and/or build structures for business, for investors to develop residential or commercial properties, and for real estate secured financing of existing businesses, as well as financing to startups and other small businesses. The company’s residential real estate lending products include fixed-rate and adjustable rate residential mortgage and home equity loans; retail credit products include personal, automobile, and boat/recreational vehicle loans; and municipal and institutional banking products and services for state and local governments, schools, charities, membership, and not-for-profit associations comprise deposit accounts, tax-exempt loans, lines of credit, and term loans, as well as a collateralized secured deposit products. It operates through a main office in Derby; and eleven branch offices in northeastern and central Vermont. Community Bancorp. was founded in 1851 and is headquartered in Derby, Vermont.
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