Banner (NASDAQ:BANR – Get Free Report) and Citizens (NASDAQ:CIZN – Get Free Report) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, profitability, earnings, analyst recommendations and institutional ownership.
Risk & Volatility
Banner has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500. Comparatively, Citizens has a beta of -0.02, indicating that its share price is 102% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and price targets for Banner and Citizens, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Banner | 0 | 3 | 3 | 0 | 2.50 |
| Citizens | 0 | 0 | 0 | 0 | 0.00 |
Dividends
Banner pays an annual dividend of $1.92 per share and has a dividend yield of 2.7%. Citizens pays an annual dividend of $0.64 per share and has a dividend yield of 6.7%. Banner pays out 40.2% of its earnings in the form of a dividend. Citizens pays out 104.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Earnings and Valuation
This table compares Banner and Citizens”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Banner | $745.98 million | 3.30 | $183.62 million | $4.78 | 14.93 |
| Citizens | $60.02 million | 0.89 | $1.85 million | $0.61 | 15.57 |
Banner has higher revenue and earnings than Citizens. Banner is trading at a lower price-to-earnings ratio than Citizens, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Banner and Citizens’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Banner | 20.28% | 10.22% | 1.10% |
| Citizens | 4.44% | 7.23% | 0.23% |
Insider and Institutional Ownership
87.3% of Banner shares are owned by institutional investors. Comparatively, 9.7% of Citizens shares are owned by institutional investors. 1.6% of Banner shares are owned by company insiders. Comparatively, 8.9% of Citizens shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Summary
Banner beats Citizens on 13 of the 16 factors compared between the two stocks.
About Banner
Banner Corporation operates as the bank holding company for Banner Bank that engages in the provision of commercial banking and financial products and services to individuals, businesses, and public sector entities in the United States. It accepts various deposit instruments, including interest-bearing and non-interest-bearing checking accounts, money market deposit accounts, regular savings accounts, and certificates of deposit, as well as treasury management services and retirement savings plans. The company also provides commercial real estate loans, including owner-occupied, investment properties, and multifamily residential real estate loans; construction, land, and land development loans; one- to four-family residential real estate lending; commercial business loans; agricultural loans; consumer and other loans, such as home equity lines of credit, automobile, and boat and recreational vehicle loans, as well as loans secured by deposit accounts; and small business administration loans. In addition, it provides electronic and digital banking services comprising debit cards and ATMs, internet banking, remote deposit, and mobile banking services. The company was founded in 1890 and is based in Walla Walla, Washington.
About Citizens
Citizens Holding Company operates as the bank holding company for The Citizens Bank of Philadelphia that provides various commercial and personal banking products and services. It offers demand deposits; and savings and time deposit accounts. The company also provides secured and unsecured loans; mortgage loans; single and multi-family housing, farm, residential and commercial construction, and commercial real estate loans; commercial, industrial, and agricultural production loans; and consumer loans, as well as issues letters of credit. In addition, it offers personal and corporate trust services; credit life and title insurance; and online and mobile banking services. The company was founded in 1908 and is headquartered in Philadelphia, Mississippi.
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