Analyzing Credit Suisse Group (NYSE:CS) & Old Line Bancshares (OLBK)

Credit Suisse Group (NYSE: CS) and Old Line Bancshares (NASDAQ:OLBK) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitabiliy, analyst recommendations, risk and institutional ownership.

Profitability

This table compares Credit Suisse Group and Old Line Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Credit Suisse Group -4.84% -2.93% -0.16%
Old Line Bancshares 21.67% 10.22% 0.91%

Analyst Recommendations

This is a summary of recent ratings and price targets for Credit Suisse Group and Old Line Bancshares, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Credit Suisse Group 1 0 8 0 2.78
Old Line Bancshares 0 1 1 0 2.50

Credit Suisse Group currently has a consensus price target of $16.00, indicating a potential upside of 6.95%. Old Line Bancshares has a consensus price target of $29.00, indicating a potential upside of 9.81%. Given Old Line Bancshares’ higher possible upside, analysts clearly believe Old Line Bancshares is more favorable than Credit Suisse Group.

Insider & Institutional Ownership

2.9% of Credit Suisse Group shares are owned by institutional investors. Comparatively, 47.9% of Old Line Bancshares shares are owned by institutional investors. 25.1% of Old Line Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Credit Suisse Group and Old Line Bancshares’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Credit Suisse Group $21.80 billion 1.75 -$1.79 billion ($0.70) -21.37
Old Line Bancshares $62.10 million 4.66 $14.79 million $1.35 19.56

Old Line Bancshares has higher revenue, but lower earnings than Credit Suisse Group. Credit Suisse Group is trading at a lower price-to-earnings ratio than Old Line Bancshares, indicating that it is currently the more affordable of the two stocks.

Dividends

Credit Suisse Group pays an annual dividend of $0.72 per share and has a dividend yield of 4.8%. Old Line Bancshares pays an annual dividend of $0.32 per share and has a dividend yield of 1.2%. Credit Suisse Group pays out -102.9% of its earnings in the form of a dividend. Old Line Bancshares pays out 23.7% 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. Credit Suisse Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility and Risk

Credit Suisse Group has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500. Comparatively, Old Line Bancshares has a beta of 0.25, indicating that its share price is 75% less volatile than the S&P 500.

Summary

Old Line Bancshares beats Credit Suisse Group on 9 of the 15 factors compared between the two stocks.

Credit Suisse Group Company Profile

Credit Suisse Group AG (Credit Suisse) is a financial services company. The Company’s segments include Swiss Universal Bank, International Wealth Management, Asia Pacific, Global Markets, Investment Banking & Capital Markets, Strategic Resolution Unit and Corporate Center. It offers a range of private banking and wealth management solutions to its clients in its Swiss Universal Bank, International Wealth Management and Asia Pacific divisions. It offers a range of investment advice and discretionary asset management services. It offers a range of investment services, including macroeconomic, equity, bond, commodity and foreign-exchange analysis, as well as research on the economy. Its investment advice covers a range of services from portfolio consulting to advising on individual investments. The Company offers its clients portfolio and risk management solutions, including managed investment products.

Old Line Bancshares Company Profile

Old Line Bancshares, Inc. is the holding company of Old Line Bank (The Bank). The Bank is a chartered trust company engaged in commercial banking business, making various types of loans, investments and accepting deposits. The Bank markets its financial services to small to medium sized businesses, entrepreneurs, professionals, consumers and clients. The Bank, through its division Old Line Financial Services, provides retirement planning and products, as well as investment services, including investment management, estate and succession planning, and allows its customers to directly purchase individual stocks, bonds and mutual funds. The Bank offers its customers safe deposit boxes, wire transfer services, debit cards, prepaid cards, automated teller machines at all of its branch locations, investment services and credit cards through a third party processor.

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