Analyzing Cib Marine Bancshares (OTCMKTS:CIBH) & Webster Financial (NYSE:WBS)

Webster Financial (NYSE:WBS) and Cib Marine Bancshares (OTCMKTS:CIBH) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.

Institutional and Insider Ownership

85.6% of Webster Financial shares are owned by institutional investors. 0.5% of Webster Financial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Webster Financial and Cib Marine Bancshares”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Webster Financial	$4.42 billion	2.56	$1.00 billion	$5.91	11.88
Cib Marine Bancshares	$50.14 million	1.05	$1.53 million	$1.12	34.39

Webster Financial has higher revenue and earnings than Cib Marine Bancshares. Webster Financial is trading at a lower price-to-earnings ratio than Cib Marine Bancshares, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Webster Financial and Cib Marine Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Webster Financial	22.67%	11.10%	1.22%
Cib Marine Bancshares	N/A	N/A	N/A

Analyst Ratings

This is a summary of current ratings and price targets for Webster Financial and Cib Marine Bancshares, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Webster Financial	1	11	4	0	2.19
Cib Marine Bancshares	0	0	0	0	0.00

Webster Financial currently has a consensus target price of $74.50, suggesting a potential upside of 6.11%. Given Webster Financial’s stronger consensus rating and higher probable upside, analysts clearly believe Webster Financial is more favorable than Cib Marine Bancshares.

Risk & Volatility

Webster Financial has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500. Comparatively, Cib Marine Bancshares has a beta of 0.27, meaning that its stock price is 73% less volatile than the S&P 500.

Summary

Webster Financial beats Cib Marine Bancshares on 13 of the 14 factors compared between the two stocks.

About Webster Financial

Webster Financial Corporation operates as the bank holding company for Webster Bank, National Association that provides a range of financial products and services to individuals, families, and businesses in the United States. It operates through three segments: Commercial Banking, HSA Bank, and Consumer Banking. The Commercial Banking segment offers commercial real estate and equipment financing, business banking, asset-based lending, and commercial services; public sector finance; mortgage warehouse financing; sponsor and specialty financing services; credit, deposit, and cash flow management services; and wealth management solutions to business owners and operators, including trust, asset management, financial planning, insurance, retirement, and investment products, as well as treasury management services comprising derivative, treasury, accounts payable, accounts receivable, and trade products and services. This segment also provides commercial services, such as accounts receivable factoring and trade financing, payroll funding, and business process outsourcing. The HSA Bank segment offers health savings accounts, health reimbursement arrangements, flexible spending accounts, and commuter benefit services that are distributed directly to employers and individual consumers, as well as through national and regional insurance carriers, benefit consultants, and financial advisors. The Consumer Banking segment provides consumer deposit and fee-based services, residential mortgages, home equity lines, secured and unsecured loans, and credit cards to consumers; and small business banking products, such as credit, deposit, and cash flow management products to businesses and professional service firms. The company offers online and mobile banking services. Webster Financial Corporation was founded in 1935 and is headquartered in Stamford, Connecticut.

About Cib Marine Bancshares

CIB Marine Bancshares, Inc. operates as the bank holding company for CIBM Bank that provides commercial banking services to individual and business customers in Illinois, Indiana, and Wisconsin. It provides deposit accounts comprising checking, savings, and time deposits. The company offers a range of loan products, such as commercial, commercial real estate, commercial and residential construction, government guaranteed, one-to-four family residential real estate, home equity, and consumer loans, as well as commercial and standby letters of credit. In addition, it provides trust services; cash management; repurchase agreements; mortgage; and other banking services. Further, the company invests in securities. The company was formerly known as Central Illinois Bancorp, Inc. and changed its name to CIB Marine Bancshares, Inc. in August 1999. CIB Marine Bancshares, Inc. was incorporated in 1985 and is based in Brookfield, Wisconsin.