Head-To-Head Review: Carter Bankshares (CARE) & Its Rivals

Carter Bankshares (NASDAQ:CARE) is one of 920 public companies in the “Banks” industry, but how does it compare to its rivals? We will compare Carter Bankshares to similar businesses based on the strength of its institutional ownership, risk, earnings, dividends, profitability, valuation and analyst recommendations.

Dividends

Carter Bankshares pays an annual dividend of $0.40 per share and has a dividend yield of 1.4%. Carter Bankshares pays out 6.8% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.5% and pay out 28.9% of their earnings in the form of a dividend.

Risk & Volatility

Carter Bankshares has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, Carter Bankshares’ rivals have a beta of 0.61, indicating that their average stock price is 39% less volatile than the S&P 500.

Profitability

This table compares Carter Bankshares and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Carter Bankshares	37.19%	7.55%	0.76%
Carter Bankshares Competitors	15.63%	9.45%	0.93%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Carter Bankshares and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carter Bankshares	0	4	1	0	2.20
Carter Bankshares Competitors	7458	30161	27712	1451	2.35

Carter Bankshares currently has a consensus price target of $30.75, suggesting a potential upside of 6.03%. As a group, “Banks” companies have a potential upside of 17.46%. Given Carter Bankshares’ rivals stronger consensus rating and higher probable upside, analysts plainly believe Carter Bankshares has less favorable growth aspects than its rivals.

Valuation & Earnings

This table compares Carter Bankshares and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Carter Bankshares	$254.63 million	$31.00 million	4.90
Carter Bankshares Competitors	$37.86 billion	$2.41 billion	16.69

Carter Bankshares’ rivals have higher revenue and earnings than Carter Bankshares. Carter Bankshares is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

41.5% of Carter Bankshares shares are owned by institutional investors. Comparatively, 47.7% of shares of all “Banks” companies are owned by institutional investors. 2.4% of Carter Bankshares shares are owned by company insiders. Comparatively, 9.8% of shares of all “Banks” companies are owned 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.

Summary

Carter Bankshares rivals beat Carter Bankshares on 13 of the 15 factors compared.

Carter Bankshares Company Profile

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.