Colony Bankcorp (NASDAQ:CBAN) & Touchstone Bankshares (OTCMKTS:TSBA) Critical Comparison

Touchstone Bankshares (OTCMKTS:TSBA) and Colony Bankcorp (NASDAQ:CBAN) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, earnings, risk, valuation and dividends.

Risk & Volatility

Touchstone Bankshares has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500. Comparatively, Colony Bankcorp has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500.

Earnings & Valuation

This table compares Touchstone Bankshares and Colony Bankcorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Touchstone Bankshares	N/A	N/A	$1.61 million	$0.65	21.92
Colony Bankcorp	$132.18 million	3.20	$23.87 million	$1.59	12.51

Colony Bankcorp has higher revenue and earnings than Touchstone Bankshares. Colony Bankcorp is trading at a lower price-to-earnings ratio than Touchstone Bankshares, indicating that it is currently the more affordable of the two stocks.

Dividends

Touchstone Bankshares pays an annual dividend of $0.32 per share and has a dividend yield of 2.2%. Colony Bankcorp pays an annual dividend of $0.48 per share and has a dividend yield of 2.4%. Touchstone Bankshares pays out 49.2% of its earnings in the form of a dividend. Colony Bankcorp pays out 30.2% 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. Colony Bankcorp has increased its dividend for 7 consecutive years. Colony Bankcorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Touchstone Bankshares and Colony Bankcorp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Touchstone Bankshares	0	0	0	0	0.00
Colony Bankcorp	0	0	1	0	3.00

Colony Bankcorp has a consensus target price of $22.00, suggesting a potential upside of 10.61%. Given Colony Bankcorp’s stronger consensus rating and higher probable upside, analysts plainly believe Colony Bankcorp is more favorable than Touchstone Bankshares.

Institutional and Insider Ownership

0.4% of Touchstone Bankshares shares are held by institutional investors. Comparatively, 50.4% of Colony Bankcorp shares are held by institutional investors. 10.4% of Touchstone Bankshares shares are held by company insiders. Comparatively, 6.6% of Colony Bankcorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Touchstone Bankshares and Colony Bankcorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Touchstone Bankshares	N/A	N/A	N/A
Colony Bankcorp	13.51%	9.64%	0.85%

Summary

Colony Bankcorp beats Touchstone Bankshares on 14 of the 16 factors compared between the two stocks.

About Touchstone Bankshares

Touchstone Bankshares, Inc. operates as the bank holding company for Touchstone Bank that provides various community banking products and services in the United States. The company offers personal and business savings and checking accounts. It also provides home mortgage, professional mortgage, home equity, auto, and personal term loans; personal lines of credit; and business loans comprising commercial real estate, operating capital, business term, and construction loans, as well as business lines of credit. In addition, the company offers credit and debit cards; and digital banking, treasury, wealth management, and financial planning services. It has branches in northern North Carolina and south-central Virginia. The company was founded in 1906 and is headquartered in Prince George, Virginia.

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 consumer customers. The company offers deposit products, including demand, savings, and time deposits. It 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, the company 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. The company was founded in 1975 and is headquartered in Fitzgerald, Georgia.