Financial Analysis: GrandSouth Bancorporation (OTCMKTS:GRRB) vs. Community Trust Bancorp (NASDAQ:CTBI)

GrandSouth Bancorporation (OTCMKTS:GRRB) and Community Trust Bancorp (NASDAQ:CTBI) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, risk, valuation and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for GrandSouth Bancorporation and Community Trust Bancorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GrandSouth Bancorporation	0	0	0	0	0.00
Community Trust Bancorp	0	0	2	2	3.50

Community Trust Bancorp has a consensus target price of $63.50, indicating a potential downside of 6.04%. Given Community Trust Bancorp’s stronger consensus rating and higher probable upside, analysts clearly believe Community Trust Bancorp is more favorable than GrandSouth Bancorporation.

Valuation & Earnings

This table compares GrandSouth Bancorporation and Community Trust Bancorp”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GrandSouth Bancorporation	N/A	N/A	N/A	N/A	N/A
Community Trust Bancorp	$409.34 million	3.00	$98.06 million	$5.71	11.84

Community Trust Bancorp has higher revenue and earnings than GrandSouth Bancorporation.

Insider and Institutional Ownership

60.2% of Community Trust Bancorp shares are held by institutional investors. 33.3% of GrandSouth Bancorporation shares are held by company insiders. Comparatively, 2.6% of Community Trust Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GrandSouth Bancorporation	N/A	N/A	N/A
Community Trust Bancorp	24.85%	12.27%	1.56%

Summary

Community Trust Bancorp beats GrandSouth Bancorporation on 9 of the 10 factors compared between the two stocks.

About GrandSouth Bancorporation

GrandSouth Bancorporation operates as the bank holding company for GrandSouth Bank that provides banking services to individuals and businesses. It accepts checking accounts, savings accounts, money market accounts, various term certificates of deposit, and individual retirement accounts. The company also offers one-to-four family residential, commercial real estate, home equity and lines of credit, residential construction and other construction and land, and commercial loans; and consumer loans comprising loans secured by personal property, such as automobiles, marketable securities, and boats and motorcycles, as well as unsecured consumer debt. In addition, it invests in investment securities, as well as provides specialty floor plan lending to small auto dealerships under the CarBucks trade name. The company operates through eight branches across South Carolina. GrandSouth Bancorporation was founded in 1998 and is based in Greenville, South Carolina.

About Community Trust Bancorp

Community Trust Bancorp, Inc. operates as the bank holding company for Community Trust Bank, Inc. that engages in the provision of commercial and personal banking, and trust and wealth management services to small and mid-sized communities in eastern, northeastern, central, and south-central Kentucky, as well as southern West Virginia, and northeastern Tennessee. The company accepts time and demand deposits, checking accounts, savings accounts and savings certificates, individual retirement accounts and Keogh plans, and money market accounts. Its loan portfolio includes commercial, construction, mortgage, and personal loans; lease-financing, lines of credit, revolving lines of credit, and term loans, as well as other specialized loans, including asset-based financing; residential and commercial real estate loans; and consumer loans. The company also provides cash management, renting safe deposit boxes, and funds transfer services; issues letters of credit; and acts as a trustee of personal trusts, executor of estates, trustee for employee benefit trusts, and paying agent for bond and stock issues, as well as an investment agent and depositor for securities. In addition, it offers securities brokerage services; debit cards; annuity and life insurance products; and repurchase agreements, as well as mobile, internet banking, and e-statement services. The company was founded in 1903 and is headquartered in Pikeville, Kentucky.