Citizens Financial Group (NYSE:CFG) and ConnectOne Bancorp (NASDAQ:CNOB) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, valuation, profitability, dividends and institutional ownership.
Insider and Institutional Ownership
91.8% of Citizens Financial Group shares are owned by institutional investors. Comparatively, 64.4% of ConnectOne Bancorp shares are owned by institutional investors. 0.5% of Citizens Financial Group shares are owned by insiders. Comparatively, 7.1% of ConnectOne Bancorp shares are owned by 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.
Citizens Financial Group has a beta of 1.78, indicating that its stock price is 78% more volatile than the S&P 500. Comparatively, ConnectOne Bancorp has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500.
Citizens Financial Group pays an annual dividend of $1.56 per share and has a dividend yield of 3.6%. ConnectOne Bancorp pays an annual dividend of $0.44 per share and has a dividend yield of 1.8%. Citizens Financial Group pays out 64.7% of its earnings in the form of a dividend. ConnectOne Bancorp pays out 20.7% 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. Citizens Financial Group has increased its dividend for 1 consecutive years and ConnectOne Bancorp has increased its dividend for 1 consecutive years.
This table compares Citizens Financial Group and ConnectOne Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Citizens Financial Group||28.12%||10.11%||1.14%|
This is a summary of current ratings for Citizens Financial Group and ConnectOne Bancorp, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Citizens Financial Group||1||4||12||0||2.65|
Citizens Financial Group currently has a consensus price target of $47.71, suggesting a potential upside of 9.96%. ConnectOne Bancorp has a consensus price target of $24.88, suggesting a potential upside of 0.18%. Given Citizens Financial Group’s higher possible upside, equities research analysts clearly believe Citizens Financial Group is more favorable than ConnectOne Bancorp.
Earnings & Valuation
This table compares Citizens Financial Group and ConnectOne Bancorp’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Citizens Financial Group||$7.68 billion||2.41||$1.06 billion||$2.41||18.00|
|ConnectOne Bancorp||$322.60 million||3.06||$71.29 million||$2.13||11.66|
Citizens Financial Group has higher revenue and earnings than ConnectOne Bancorp. ConnectOne Bancorp is trading at a lower price-to-earnings ratio than Citizens Financial Group, indicating that it is currently the more affordable of the two stocks.
Citizens Financial Group beats ConnectOne Bancorp on 9 of the 17 factors compared between the two stocks.
About Citizens Financial Group
Citizens Financial Group, Inc. operates as the bank holding company for Citizens Bank, National Association that provides retail and commercial banking products and services in the United States. The company operates in two segments, Consumer Banking and Commercial Banking. The Consumer Banking segment offers traditional banking products and services, including checking and savings accounts, home and education loans, credit cards, business loans, mortgage and home equity lending, and unsecured product finance and personal loans, as well as wealth management and investment services to retail customers and small businesses. This segment also provides indirect auto finance for new and used vehicles through auto dealerships. The Commercial Banking segment offers various financial products and solutions, such as loans and leasing, trade finance, deposit and treasury management, cash management, and foreign exchange and interest rate risk management solutions; and loan syndications, corporate finance, merger and acquisition, and debt and equity capital markets capabilities. It serves government banking, not-for-profit, healthcare, technology, professionals, oil and gas, asset finance, franchise finance, asset-based lending, commercial real estate, private equity, and sponsor finance industries. Citizens Financial Group, Inc. operates approximately 2,700 ATMs and 1,000 branches in 11 states in the New England, Mid-Atlantic, and Midwest regions, as well as through online, telephone, and mobile banking services; and maintains approximately 130 retail and commercial non-branch offices. The company was formerly known as RBS Citizens Financial Group, Inc. and changed its name to Citizens Financial Group, Inc. in April 2014. Citizens Financial Group, Inc. was founded in 1828 and is headquartered in Providence, Rhode Island.
About ConnectOne Bancorp
ConnectOne Bancorp, Inc. operates as the bank holding company for ConnectOne Bank, a chartered commercial bank that provides various commercial banking products and services. The company's deposit products include personal and business checking accounts, retirement accounts, money market accounts, and time and savings accounts. It also provides consumer and commercial business loans on a secured and unsecured basis; revolving lines of credit; commercial mortgage loans; residential mortgages on primary and secondary residences; home equity loans; bridge loans; other personal purpose loans; and commercial construction and real estate loans. In addition, the company offers insurance, credit cards, wire transfers, access to automated teller services, Internet banking, treasury direct, ACH origination, mobile banking by phone, safe deposit box, and remote deposit capture services. It operates through a network of nine banking offices in Bergen County, five banking offices in Union County, two banking offices in Morris County, one office Essex County, one office in Hudson County, one office in Mercer County, one office in Monmouth County, one office in the borough of Manhattan, one office in Nassau County, and one office in Astoria, as well as six branches in the Hudson Valley. ConnectOne Bancorp, Inc. serves small-to-medium sized businesses, high net worth individuals, professional practices, and consumer and retail customers. The company was formerly known as Center Bancorp, Inc. and changed its name to ConnectOne Bancorp, Inc. in July 2014. ConnectOne Bancorp, Inc. was incorporated in 1982 and is headquartered in Englewood Cliffs, New Jersey.
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