Cadence Bancorporation (NYSE:CADE) and Nicolet Bankshares (NASDAQ:NCBS) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, earnings, institutional ownership, risk, analyst recommendations and valuation.
Profitability
This table compares Cadence Bancorporation and Nicolet Bankshares' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Cadence Bancorporation | -40.33% | 2.70% | 0.33% |
Nicolet Bankshares | 26.37% | 10.36% | 1.31% |
Valuation and Earnings
This table compares Cadence Bancorporation and Nicolet Bankshares' gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Cadence Bancorporation | $991 million | 2.61 | $201.96 million | $1.72 | 11.92 |
Nicolet Bankshares | $191.96 million | 3.80 | $54.64 million | $5.52 | 13.09 |
Cadence Bancorporation has higher revenue and earnings than Nicolet Bankshares. Cadence Bancorporation is trading at a lower price-to-earnings ratio than Nicolet Bankshares, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
90.1% of Cadence Bancorporation shares are owned by institutional investors. Comparatively, 37.7% of Nicolet Bankshares shares are owned by institutional investors. 3.0% of Cadence Bancorporation shares are owned by insiders. Comparatively, 14.2% of Nicolet Bankshares shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Cadence Bancorporation and Nicolet Bankshares, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Cadence Bancorporation | 0 | 2 | 4 | 1 | 2.86 |
Nicolet Bankshares | 0 | 2 | 1 | 0 | 2.33 |
Cadence Bancorporation presently has a consensus price target of $13.9167, suggesting a potential downside of 32.15%. Nicolet Bankshares has a consensus price target of $68.6667, suggesting a potential downside of 4.97%. Given Nicolet Bankshares' higher probable upside, analysts clearly believe Nicolet Bankshares is more favorable than Cadence Bancorporation.
Volatility & Risk
Cadence Bancorporation has a beta of 1.91, indicating that its share price is 91% more volatile than the S&P 500. Comparatively, Nicolet Bankshares has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500.
Summary
Nicolet Bankshares beats Cadence Bancorporation on 8 of the 15 factors compared between the two stocks.