Your Community Bankshares (NASDAQ: YCB) and Citigroup (NYSE:C) are both financials companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.
This table compares Your Community Bankshares and Citigroup’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Your Community Bankshares||22.71%||11.13%||0.98%|
34.7% of Your Community Bankshares shares are owned by institutional investors. Comparatively, 78.5% of Citigroup shares are owned by institutional investors. 11.5% of Your Community Bankshares shares are owned by company insiders. Comparatively, 0.1% of Citigroup shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Your Community Bankshares and Citigroup’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Your Community Bankshares||N/A||N/A||N/A||$2.71||14.53|
|Citigroup||$82.39 billion||2.47||$14.91 billion||$5.19||14.81|
Citigroup has higher revenue and earnings than Your Community Bankshares. Your Community Bankshares is trading at a lower price-to-earnings ratio than Citigroup, indicating that it is currently the more affordable of the two stocks.
Your Community Bankshares pays an annual dividend of $0.48 per share and has a dividend yield of 1.2%. Citigroup pays an annual dividend of $1.28 per share and has a dividend yield of 1.7%. Your Community Bankshares pays out 17.7% of its earnings in the form of a dividend. Citigroup pays out 24.7% 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. Your Community Bankshares has increased its dividend for 3 consecutive years.
This is a summary of current ratings and recommmendations for Your Community Bankshares and Citigroup, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Your Community Bankshares||0||0||0||0||N/A|
Citigroup has a consensus price target of $78.79, indicating a potential upside of 2.54%. Given Citigroup’s higher possible upside, analysts plainly believe Citigroup is more favorable than Your Community Bankshares.
Citigroup beats Your Community Bankshares on 7 of the 13 factors compared between the two stocks.
About Your Community Bankshares
Your Community Bankshares, Inc., formerly Community Bank Shares of Indiana, Inc., is a bank holding company. The Company operates through its banking subsidiary, Your Community Bank (the Bank). The Bank is a state-chartered commercial bank. The Bank has approximately three subsidiaries to manage its investment portfolio, including CBSI Holdings, Inc. and CBSI Investments, Inc., which together owns CBSI Investment Portfolio Management, LLC, which holds and manages investment securities owned by the Bank. In addition, the Company owns a captive insurance company, CBIN Insurance, Inc., which issues policies to its banking subsidiaries. The Company offers business and personal banking services through a range of deposit products and services that include non-interest and interest-bearing checking accounts, mobile banking, debit cards, savings accounts, money market accounts, certificates of deposit and individual retirement accounts.
Citigroup Inc. (Citi) is a financial services holding company. The Company’s whose businesses provide consumers, corporations, governments and institutions with a range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, trade and securities services and wealth management. The Company operates through two segments: Citicorp and Citi Holdings. Citicorp is the Company’s global bank for consumers and businesses and represents its core franchises. Citicorp is focused on providing products and services to customers and leveraging the Company’s global network, including various economies. As of December 31, 2016, Citicorp was present in 97 countries and jurisdictions, and offered services in over 160 countries and jurisdictions. Global Consumer Banking (GCB) provides traditional banking services to retail customers through retail banking, including Citi-branded cards and Citi retail services.
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