Financial Survey: Comerica (NYSE:CMA) vs. Community Bancorp (OTCMKTS:CMTV)

Community Bancorp (OTCMKTS:CMTV) and Comerica (NYSE:CMA) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, valuation, earnings and profitability.

Analyst Ratings

This is a summary of current ratings and price targets for Community Bancorp and Comerica, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Community Bancorp	0	0	0	0	N/A
Comerica	2	14	6	0	2.18

Comerica has a consensus target price of $56.98, suggesting a potential upside of 7.36%. Given Comerica’s higher probable upside, analysts clearly believe Comerica is more favorable than Community Bancorp.

Profitability

This table compares Community Bancorp and Comerica’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Community Bancorp	24.84%	16.68%	1.27%
Comerica	13.11%	16.51%	1.04%

Earnings & Valuation

This table compares Community Bancorp and Comerica’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Community Bancorp	$54.08 million	1.56	$13.43 million	N/A	N/A
Comerica	$5.25 billion	1.34	$881.00 million	$5.03	10.55

Comerica has higher revenue and earnings than Community Bancorp.

Dividends

Community Bancorp pays an annual dividend of $0.92 per share and has a dividend yield of 6.0%. Comerica pays an annual dividend of $2.84 per share and has a dividend yield of 5.4%. Comerica pays out 56.5% of its earnings in the form of a dividend. Comerica has increased its dividend for 1 consecutive years.

Institutional & Insider Ownership

80.7% of Comerica shares are owned by institutional investors. 9.3% of Community Bancorp shares are owned by company insiders. Comparatively, 0.2% of Comerica shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Community Bancorp has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500. Comparatively, Comerica has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500.

About Community Bancorp

Community Bancorp. operates as the bank holding company for Community National Bank that provides financial services to individuals, businesses, nonprofit organizations, and municipalities in northern and central Vermont. It offers financing for commercial business properties, equipment, inventories, and accounts receivable, as well as standby letters of credit; and business checking and other deposit accounts, cash management services, repurchase agreements, ACH and wire transfer services, card processing, and remote deposit capture. The company also provides commercial real estate lending products, including financing for commercial developers and investors, residential builders and developers, and community development entities, including credit products to facilitate the purchase of land and/or build structures for business, to develop residential or commercial properties, and for real estate secured financing of existing businesses, as well as financing to startups and other small businesses. In addition, it offers residential real estate lending products, including fixed-rate and adjustable rate residential mortgage and home equity loans; and retail credit services, which includes personal, automobile, and boat/recreational vehicle loans. The company also provides municipal and institutional banking services, such as deposit account services, term and tax-exempt loans, and lines of credit to state and local governments, schools, charities, membership, and not-for-profit associations. Further, it offers consumer banking services including checking accounts, savings programs, ATMs, debit and credit cards, night deposit facilities, and online, mobile and telephone banking services. Community Bancorp. was founded in 1851 and is headquartered in Derby, Vermont.

About Comerica

Comerica Incorporated, through its subsidiaries, provides various financial products and services. The company operates through Commercial Bank, Retail Bank, Wealth Management, and Finance segments. The Commercial Bank segment offers various products and services, including commercial loans and lines of credit, deposits, cash management, payment solutions, card services, capital market products, international trade finance, letters of credit, foreign exchange management services, and loan syndication services for small and middle market businesses, multinational corporations, and governmental entities. The Retail Bank segment provides personal financial services, such as consumer lending, consumer deposit gathering, and mortgage loan origination; and various consumer products that include deposit accounts, installment loans, credit cards, student loans, home equity lines of credit, and residential mortgage loans. The Wealth Management segment offers products and services comprising financial planning, trust and fiduciary services, investment management and advisory, brokerage, private banking, and business transition planning services for affluents, high-net worth and ultra-high-net-worth individuals and families, business owners, and executives, and institutional clients. The Finance segment comprises securities portfolio, and asset and liability management activities. It operates in Texas, California, Michigan, Arizona, and Florida, the United States; and Canada and Mexico. The company was formerly known as DETROITBANK Corporation and changed its name to Comerica Incorporated in July 1982. Comerica Incorporated was founded in 1849 and is headquartered in Dallas, Texas.