CATC vs. HTBK, IBCP, MCBC, EQBK, TRST, MSBI, HBNC, CCB, CPF, and FMNB
Should you be buying Cambridge Bancorp stock or one of its competitors? The main competitors of Cambridge Bancorp include Heritage Commerce (HTBK), Independent Bank (IBCP), Macatawa Bank (MCBC), Equity Bancshares (EQBK), TrustCo Bank Corp NY (TRST), Midland States Bancorp (MSBI), Horizon Bancorp (HBNC), Coastal Financial (CCB), Central Pacific Financial (CPF), and Farmers National Banc (FMNB). These companies are all part of the "state commercial banks" industry.
Heritage Commerce (NASDAQ:HTBK) and Cambridge Bancorp (NASDAQ:CATC) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, risk, earnings, valuation, community ranking, analyst recommendations, media sentiment, dividends and institutional ownership.
Heritage Commerce presently has a consensus price target of $10.75, suggesting a potential upside of 32.06%. Cambridge Bancorp has a consensus price target of $73.15, suggesting a potential upside of 13.10%. Given Cambridge Bancorp's stronger consensus rating and higher possible upside, research analysts clearly believe Heritage Commerce is more favorable than Cambridge Bancorp.
Heritage Commerce has a net margin of 26.49% compared to Heritage Commerce's net margin of 12.25%. Cambridge Bancorp's return on equity of 9.78% beat Heritage Commerce's return on equity.
Heritage Commerce has higher earnings, but lower revenue than Cambridge Bancorp. Heritage Commerce is trading at a lower price-to-earnings ratio than Cambridge Bancorp, indicating that it is currently the more affordable of the two stocks.
Heritage Commerce pays an annual dividend of $0.52 per share and has a dividend yield of 6.3%. Cambridge Bancorp pays an annual dividend of $2.68 per share and has a dividend yield of 4.1%. Heritage Commerce pays out 49.1% of its earnings in the form of a dividend. Cambridge Bancorp pays out 61.8% 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. Cambridge Bancorp has raised its dividend for 25 consecutive years. Heritage Commerce is clearly the better dividend stock, given its higher yield and lower payout ratio.
In the previous week, Cambridge Bancorp had 3 more articles in the media than Heritage Commerce. MarketBeat recorded 5 mentions for Cambridge Bancorp and 2 mentions for Heritage Commerce. Heritage Commerce's average media sentiment score of 1.63 beat Cambridge Bancorp's score of 0.05 indicating that Cambridge Bancorp is being referred to more favorably in the news media.
Heritage Commerce has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, Cambridge Bancorp has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500.
75.6% of Heritage Commerce shares are held by institutional investors. Comparatively, 55.5% of Cambridge Bancorp shares are held by institutional investors. 4.0% of Heritage Commerce shares are held by company insiders. Comparatively, 4.5% of Cambridge Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Heritage Commerce received 170 more outperform votes than Cambridge Bancorp when rated by MarketBeat users. Likewise, 58.81% of users gave Heritage Commerce an outperform vote while only 56.19% of users gave Cambridge Bancorp an outperform vote.
Summary
Heritage Commerce beats Cambridge Bancorp on 14 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding CATC and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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