Community Bancorp (OTCMKTS:CMTV – Get Rating) and First Merchants (NASDAQ:FRME – Get Rating) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, analyst recommendations, risk, dividends and valuation.
Valuation and Earnings
This table compares Community Bancorp and First Merchants’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Community Bancorp||$43.76 million||2.25||$13.74 million||N/A||N/A|
|First Merchants||$712.95 million||2.25||$222.09 million||$3.97||6.77|
First Merchants has higher revenue and earnings than Community Bancorp.
This is a summary of current ratings and target prices for Community Bancorp and First Merchants, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
First Merchants has a consensus target price of $44.67, suggesting a potential upside of 66.11%. Given First Merchants’ higher possible upside, analysts plainly believe First Merchants is more favorable than Community Bancorp.
Risk & Volatility
Community Bancorp has a beta of 0.25, meaning that its stock price is 75% less volatile than the S&P 500. Comparatively, First Merchants has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500.
Institutional & Insider Ownership
71.4% of First Merchants shares are owned by institutional investors. 8.8% of Community Bancorp shares are owned by company insiders. Comparatively, 1.3% of First Merchants 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.
This table compares Community Bancorp and First Merchants’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
First Merchants beats Community Bancorp on 9 of the 14 factors compared between the two stocks.
About Community Bancorp
Community Bancorp operates as a bank holding company, which engages in a full line of personal and business financial services. It provides retail banking services to the residents, businesses, and municipalities in northeastern and central Vermont. It operates through the following segments: Commercial and Industrial, Purchased Loans, Commercial Real Estate, Municipal, Residential Real Estate, and Consumer. The Commercial and Industrial segment includes commercial and industrial loans and to a lesser extent loans to finance agricultural production. The Purchased Loans segment offers commercial loans to medical professionals nationwide and sells them individually to a secondary market, primarily banks, through a bid process. The Commercial Real Estate segment is involved in farm loans secured by farmland and buildings. The Municipal segment offers municipal financing transactions and backed by the full faith and credit of town governments or dedicated governmental revenue sources, with no historical losses recognized by the company. The Consumer segment is made for individuals for consumer and household purposes. The company was founded in 1982 and is headquartered in Derby, VT.
About First Merchants
First Merchants Corp. (Indiana) is a bank holding company, which engages in the provision of financial services. It also offers personal banking, business banking, mortgage lending, treasury management services, and wealth management. The company was founded in September 1982 and is headquartered in Muncie, IN.
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