Head-To-Head Review: Shore Bancshares (SHBI) versus Citigroup (C)

Shore Bancshares (NASDAQ:SHBI) and Citigroup (NYSE:C) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, analyst recommendations and dividends.

Dividends

Shore Bancshares pays an annual dividend of $0.36 per share and has a dividend yield of 2.4%. Citigroup pays an annual dividend of $1.80 per share and has a dividend yield of 3.2%. Citigroup pays out 33.8% of its earnings in the form of a dividend. Shore Bancshares has raised its dividend for 3 consecutive years and Citigroup has raised its dividend for 4 consecutive years. Citigroup is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Shore Bancshares and Citigroup’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Shore Bancshares 21.52% 9.80% 1.14%
Citigroup -4.81% 9.42% 0.90%

Institutional & Insider Ownership

67.1% of Shore Bancshares shares are held by institutional investors. Comparatively, 72.7% of Citigroup shares are held by institutional investors. 2.1% of Shore Bancshares shares are held by company insiders. Comparatively, 0.1% of Citigroup shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Shore Bancshares and Citigroup’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Shore Bancshares $65.55 million 2.89 $11.26 million N/A N/A
Citigroup $87.97 billion 1.65 -$6.80 billion $5.33 10.58

Shore Bancshares has higher earnings, but lower revenue than Citigroup.

Analyst Recommendations

This is a summary of current ratings for Shore Bancshares and Citigroup, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Shore Bancshares 0 0 2 0 3.00
Citigroup 0 5 16 0 2.76

Shore Bancshares currently has a consensus target price of $23.00, suggesting a potential upside of 55.04%. Citigroup has a consensus target price of $81.25, suggesting a potential upside of 44.11%. Given Shore Bancshares’ stronger consensus rating and higher probable upside, research analysts clearly believe Shore Bancshares is more favorable than Citigroup.

Volatility and Risk

Shore Bancshares has a beta of 0.45, meaning that its stock price is 55% less volatile than the S&P 500. Comparatively, Citigroup has a beta of 1.56, meaning that its stock price is 56% more volatile than the S&P 500.

Summary

Shore Bancshares beats Citigroup on 10 of the 16 factors compared between the two stocks.

Shore Bancshares Company Profile

Shore Bancshares, Inc. is a financial holding company, which engages in the provision of commercial banking products and services. It operates through the Community Banking and Insurance Products and Services segments. The Community Banking segment comprises small business services, retail brokerage, trust services, and consumer banking products and services. The Insurance Products and Services segment includes property and casualty, life, marine, individual health, and long-term care insurance. The company was founded on March 15, 1996 and is headquartered in Easton, MD.

Citigroup Company Profile

Citigroup Inc., a diversified financial services holding company, provides various financial products and services for consumers, corporations, governments, and institutions. The company operates through two segments, Global Consumer Banking (GCB) and Institutional Clients Group (ICG). The GCB segment offers traditional banking services to retail customers through retail banking, commercial banking, Citi-branded cards, and Citi retail services. It also provides various banking, credit card lending, and investment services through a network of local branches, offices, and electronic delivery systems. The ICG segment provides wholesale banking products and services, including fixed income and equity sales and trading, foreign exchange, prime brokerage, derivative services, equity and fixed income research, corporate lending, investment banking and advisory services, private banking, cash management, trade finance, and securities services to corporate, institutional, public sector, and high-net-worth clients. The company operates in North America, Latin America, Asia, Europe, the Middle East, and Africa. Citigroup Inc. was founded in 1812 and is based in New York, New York.

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