Reviewing Signature Bank (NASDAQ:SBNY) & Community Trust Bancorp (NASDAQ:CTBI)

Signature Bank (NASDAQ:SBNY) and Community Trust Bancorp (NASDAQ:CTBI) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, valuation, risk, analyst recommendations and earnings.

Volatility and Risk

Signature Bank has a beta of 9.6, suggesting that its share price is 860% more volatile than the S&P 500. Comparatively, Community Trust Bancorp has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500.

Valuation & Earnings

This table compares Signature Bank and Community Trust Bancorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Signature Bank	$3.71 billion	N/A	$1.34 billion	N/A	N/A
Community Trust Bancorp	$326.31 million	3.37	$78.00 million	$4.40	13.84

Signature Bank has higher revenue and earnings than Community Trust Bancorp.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Signature Bank	N/A	N/A	N/A
Community Trust Bancorp	21.64%	11.13%	1.36%

Insider & Institutional Ownership

11.1% of Signature Bank shares are held by institutional investors. Comparatively, 60.2% of Community Trust Bancorp shares are held by institutional investors. 1.5% of Signature Bank shares are held by insiders. Comparatively, 4.3% of Community Trust Bancorp shares are held 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.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Signature Bank and Community Trust Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Signature Bank	0	0	0	0	0.00
Community Trust Bancorp	0	0	3	0	3.00

Community Trust Bancorp has a consensus target price of $52.00, indicating a potential downside of 14.61%. Given Community Trust Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe Community Trust Bancorp is more favorable than Signature Bank.

Summary

Community Trust Bancorp beats Signature Bank on 8 of the 11 factors compared between the two stocks.

About Signature Bank

As of March 12, 2023, Signature Bank went out of business. Previously, the company provided digital assets banking services and comprised of certain loan portfolios. The company was incorporated in 2000 and is based in New York, New York. Signature Bank now trades on OTCPK.

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.