Colony Bankcorp (NASDAQ:CBAN) and Commerce Bancshares (NASDAQ:CBSH) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, institutional ownership, valuation and profitability.

Institutional and Insider Ownership

25.5% of Colony Bankcorp shares are held by institutional investors. Comparatively, 69.8% of Commerce Bancshares shares are held by institutional investors. 5.7% of Colony Bankcorp shares are held by company insiders. Comparatively, 3.4% of Commerce Bancshares shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

Colony Bankcorp pays an annual dividend of $0.40 per share and has a dividend yield of 3.3%. Commerce Bancshares pays an annual dividend of $1.08 per share and has a dividend yield of 2.2%. Commerce Bancshares pays out 30.2% of its earnings in the form of a dividend. Colony Bankcorp has increased its dividend for 2 consecutive years and Commerce Bancshares has increased its dividend for 51 consecutive years.

Risk & Volatility

Colony Bankcorp has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500. Comparatively, Commerce Bancshares has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Colony Bankcorp and Commerce Bancshares, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Colony Bankcorp 0 0 0 0 N/A
Commerce Bancshares 3 2 0 0 1.40

Commerce Bancshares has a consensus target price of $58.50, indicating a potential upside of 20.15%. Given Commerce Bancshares’ higher possible upside, analysts clearly believe Commerce Bancshares is more favorable than Colony Bankcorp.

Profitability

This table compares Colony Bankcorp and Commerce Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Colony Bankcorp 13.57% 10.29% 0.86%
Commerce Bancshares 29.06% 14.18% 1.64%

Earnings & Valuation

This table compares Colony Bankcorp and Commerce Bancshares’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Colony Bankcorp $75.25 million 1.51 $10.21 million N/A N/A
Commerce Bancshares $1.45 billion 3.77 $421.23 million $3.58 13.60

Commerce Bancshares has higher revenue and earnings than Colony Bankcorp.

Summary

Commerce Bancshares beats Colony Bankcorp on 11 of the 14 factors compared between the two stocks.

About Colony Bankcorp

Colony Bankcorp, Inc. operates as the bank holding company for Colony Bank that provides various banking products and services to commercial and retail customers. It offers various deposit products, including demand, savings, and time deposits. The company also provides loans to small and medium-sized businesses; residential and commercial construction, and land development loans; commercial real estate loans; commercial loans; agri-business and production loans; residential mortgage loans; home equity loans; and consumer loans. In addition, it offers Internet banking services, electronic bill payment services, safe deposit box rentals, telephone banking, credit and debit card services, and remote depository products, as well as access to a network of ATMs. As of April 18, 2019, the company operated 27 branches located in central, south, and coastal Georgia. Colony Bankcorp, Inc. was founded in 1975 and is headquartered in Fitzgerald, Georgia.

About Commerce Bancshares

Commerce Bancshares, Inc. operates as the bank holding company for Commerce Bank that provides retail, mortgage banking, corporate, investment, trust, and asset management products and services to individuals and businesses. It operates through three segments: Consumer, Commercial, and Wealth. The Consumer segment offers various banking products and services, including consumer deposits; consumer loans, such as automobile, motorcycle, marine, tractor/trailer, recreational vehicle, fixed rate and revolving home equity, and other consumer loans; patient health care financing; real estate loans; indirect and other consumer financing; personal mortgage banking; consumer installment lending; and consumer debit and credit bank cards, as well as provides online banking services. The Commercial segment offers corporate lending, merchant and commercial bank card, leasing, international, and investment safekeeping and bond accounting services; and business products, government deposits, and related commercial cash management services, as well as sells fixed-income securities to individuals, corporations, correspondent banks, public institutions, and municipalities. The Wealth segment provides traditional trust and estate planning services, brokerage services, and advisory and discretionary investment management services. The company also offers private equity investment, securities brokerage, and insurance agency services. It operates through a network of 320 locations in Missouri, Kansas, Illinois, Oklahoma, and Colorado, as well as commercial offices. Commerce Bancshares, Inc. was founded in 1865 and is headquartered in Kansas City, Missouri.

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