Reviewing Consumers Bancorp (OTCMKTS:CBKM) & Cadence Bank (NYSE:CADE)

Cadence Bank (NYSE:CADE) and Consumers Bancorp (OTCMKTS:CBKM) are both financial services companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, earnings and profitability.

Profitability

This table compares Cadence Bank and Consumers Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cadence Bank	24.42%	8.82%	0.88%
Consumers Bancorp	N/A	N/A	N/A

Valuation & Earnings

This table compares Cadence Bank and Consumers Bancorp”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cadence Bank	$921.95 million	6.50	$542.30 million	$3.13	10.50
Consumers Bancorp	N/A	N/A	N/A	$1.09	16.35

Cadence Bank has higher revenue and earnings than Consumers Bancorp. Cadence Bank is trading at a lower price-to-earnings ratio than Consumers Bancorp, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Cadence Bank and Consumers Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cadence Bank	0	5	6	1	2.67
Consumers Bancorp	0	0	0	0	N/A

Cadence Bank currently has a consensus target price of $34.88, indicating a potential upside of 6.10%. Given Cadence Bank’s higher possible upside, research analysts clearly believe Cadence Bank is more favorable than Consumers Bancorp.

Insider and Institutional Ownership

84.6% of Cadence Bank shares are held by institutional investors. Comparatively, 5.0% of Consumers Bancorp shares are held by institutional investors. 2.2% of Cadence Bank shares are held by company insiders. Comparatively, 7.9% of Consumers Bancorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Cadence Bank pays an annual dividend of $1.00 per share and has a dividend yield of 3.0%. Consumers Bancorp pays an annual dividend of $0.48 per share and has a dividend yield of 2.7%. Cadence Bank pays out 31.9% of its earnings in the form of a dividend. Consumers Bancorp pays out 44.1% 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. Cadence Bank is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Cadence Bank beats Consumers Bancorp on 11 of the 13 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 Consumers Bancorp

Consumers Bancorp, Inc. operates as the bank holding company for the Consumers National Bank that provides various commercial and retail banking products and services for individuals, farmers, and small and medium-sized businesses. The company accepts various deposit products, such as checking, savings, certificates of deposit, and individual retirement accounts. It also provides commercial loans, which include financing for equipment, inventories, and accounts receivable; commercial real estate loans, including mortgage loans to farmers, owners of multi-family investment properties, developers, and owners of commercial real estate; residential real estate loans comprising one to four family residential real estate and home equity loans; and consumer loans consisting of recreation, personal, automobile loans, personal lines of credit, and unsecured consumer loans. In addition, the company invests in securities consisting of obligations of the United States government sponsored entities, municipal obligations, and mortgage-backed securities. Further, it offers small business administration, business term, commercial construction, agricultural, and equipment loans; credit and debit cards; ATMs; and online and mobile banking, as well as cash management services. Consumers Bancorp, Inc. was founded in 1965 and is headquartered in Minerva, Ohio.