Comparing Commercial National Financial (OTCMKTS:CEFC) & International Bancshares (NASDAQ:IBOC)

Earnings & Valuation

This table compares International Bancshares and Commercial National Financial”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
International Bancshares	$970.10 million	4.57	$411.77 million	$6.43	11.08
Commercial National Financial	$27.39 million	1.41	$6.17 million	$1.38	7.05

International Bancshares has higher revenue and earnings than Commercial National Financial. Commercial National Financial is trading at a lower price-to-earnings ratio than International Bancshares, indicating that it is currently the more affordable of the two stocks.

Dividends

International Bancshares pays an annual dividend of $1.32 per share and has a dividend yield of 1.9%. Commercial National Financial pays an annual dividend of $0.56 per share and has a dividend yield of 5.8%. International Bancshares pays out 20.5% of its earnings in the form of a dividend. Commercial National Financial pays out 40.6% 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. International Bancshares has raised its dividend for 15 consecutive years.

Insider and Institutional Ownership

65.9% of International Bancshares shares are owned by institutional investors. 13.9% of International Bancshares shares are owned by insiders. Comparatively, 23.0% of Commercial National Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares International Bancshares and Commercial National Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
International Bancshares	38.65%	15.62%	2.59%
Commercial National Financial	18.88%	N/A	N/A

Volatility and Risk

International Bancshares has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500. Comparatively, Commercial National Financial has a beta of 0.49, suggesting that its stock price is 51% less volatile than the S&P 500.

Summary

International Bancshares beats Commercial National Financial on 12 of the 14 factors compared between the two stocks.

About International Bancshares

International Bancshares Corporation, a financial holding company, provides commercial and retail banking services in Texas and the State of Oklahoma. It accepts checking and saving deposits; and offers commercial, real estate, personal, home improvement, automobile, and other installment and term loans. The company also provides international banking services, including letters of credit, commercial and industrial loans, and foreign exchange services. In addition, it offers other banking related services, such as credit cards, safety deposit boxes, collection, notary public, escrow, drive up and walk up facilities, and other customary banking services; and Internet banking services, as well as securities products through third party providers. The company was founded in 1966 and is headquartered in Laredo, Texas.

About Commercial National Financial

Commercial National Financial Corporation operates as the holding company for Commercial Bank that provides various banking products and services to individuals, agricultural businesses, commercial businesses, and light industries in Michigan. The company accepts various deposit products, including checking and savings accounts, individual retirement accounts, certificates of deposit, and health savings accounts. It also offers personal loan products, such as automobile loans, recreational vehicle loans, personal lines of credit, and unsecured term loans, as well as home equity loans and mortgage loans; and business loans, including secured lines of credit, business equity line of credit, SBA loans, equipment loans, real estate loans, vehicle loans, term loans, USDA loan programs, and capital access loan programs. In addition, the company provides other services comprising business VISA check cards, debit and ATM cards, business statement savings, business certificates of deposit, merchant services, night depository, telephone banking, online banking, e-statements, direct deposit of payroll for employees, child support payments, collection of receivables, and remote deposit capture, as well as treasury services. It provides its services through offices located in Barry, Gratiot, Ingham, Kent, and Montcalm counties in Michigan. The company was founded in 1893 and is headquartered in Ithaca, Michigan.