Financial Survey: Cadence Bank (NYSE:CADE) versus Madison County Financial (OTCMKTS:MCBK)

Cadence Bank (NYSE:CADE) and Madison County Financial (OTCMKTS:MCBK) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.

Analyst Ratings

This is a breakdown of current recommendations for Cadence Bank and Madison County Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cadence Bank	0	8	2	0	2.20
Madison County Financial	0	0	0	0	0.00

Cadence Bank currently has a consensus target price of $42.88, indicating a potential upside of 1.76%. Given Cadence Bank’s stronger consensus rating and higher probable upside, research analysts plainly believe Cadence Bank is more favorable than Madison County Financial.

Volatility & Risk

Cadence Bank has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, Madison County Financial has a beta of 0.12, meaning that its share price is 88% less volatile than the S&P 500.

Earnings and Valuation

This table compares Cadence Bank and Madison County Financial”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cadence Bank	$3.01 billion	2.56	$544.46 million	$2.82	14.94
Madison County Financial	$29.54 million	2.70	$3.82 million	N/A	N/A

Cadence Bank has higher revenue and earnings than Madison County Financial.

Dividends

Cadence Bank pays an annual dividend of $1.10 per share and has a dividend yield of 2.6%. Madison County Financial pays an annual dividend of $0.36 per share and has a dividend yield of 1.2%. Cadence Bank pays out 39.0% of its earnings in the form of a dividend. Cadence Bank has raised its dividend for 14 consecutive years. Cadence Bank is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Cadence Bank and Madison County Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cadence Bank	18.12%	10.16%	1.14%
Madison County Financial	N/A	N/A	N/A

Insider & Institutional Ownership

84.6% of Cadence Bank shares are held by institutional investors. 2.6% of Cadence Bank shares are held by company insiders. Comparatively, 16.9% of Madison County Financial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Cadence Bank beats Madison County Financial on 12 of the 15 factors compared between the two stocks.

About Cadence Bank

Cadence Bank provides commercial banking and financial services. Its products and services include consumer banking, consumer loans, mortgages, home equity lines and loans, credit cards, commercial and business banking, treasury management, specialized and asset-based lending, commercial real estate, equipment financing, and correspondent banking services. The company’s products and services also comprise small business administration lending, foreign exchange, wealth management, investment and trust, financial planning, retirement plan management, and personal and business insurance services. Cadence Bank was founded in 1876 and is headquartered in Tupelo, Mississippi.

About Madison County Financial

Madison County Financial, Inc. operates as the holding company for Madison County Bank that provides banking and financial services to individual and corporate customers in Nebraska, the United States. It offers checking, money market savings, savings, and individual retirement accounts; certificates of deposit; credit and debit cards; home loans; and consumer loans, including home equity lines of credit, second mortgage, home improvement, recreational vehicle, personal, and overdraft protection loans, as well as loans for automobiles, trucks, and vans. The company also provides agricultural real estate, machinery and equipment, livestock and crop, and operating loans; and commercial real estate, construction, investment property, and working capital loans, as well as equipment financing services. In addition, it offers online and mobile banking, and merchant services. The company was formerly known as Madison County Holding Company and changed its name to Madison County Financial, Inc. in October 2012. Madison County Financial, Inc. was founded in 1888 and is headquartered in Madison, Nebraska.