Chesapeake Financial Shares (OTCMKTS:CPKF – Get Rating) and National Bank (NYSE:NBHC – Get Rating) are both small cap finance companies, but which company is better? We’ll compare the two companies based on valuation strength, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.
Valuation and benefits
This chart compares gross revenue, earnings per share (EPS), and valuation of Chesapeake Financial Shares and National Bank.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|Chesapeake Financial Stocks||$64.21 million||1.93||$15.01 million||$2.96||8.89|
|National Bank||$311.33 million||4.22||$93.61 million||$2.65||16.48|
National Bank has higher revenue and profit than Chesapeake Financial Shares. Chesapeake Financial Shares trades at a lower price-to-earnings ratio than National Bank, indicating that it is currently the more affordable of the two stocks.
Chesapeake Financial Shares pays an annual dividend of $0.56 per share and has a dividend yield of 2.1%. National Bank pays an annual dividend of $0.92 per share and has a dividend yield of 2.1%. Chesapeake Financial Shares pays 18.9% of its earnings as a dividend. National Bank pays 34.7% of its profits in the form of dividends. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. National Bank has increased its dividend for 2 consecutive years. Chesapeake Financial Shares is clearly the best dividend-paying stock, given its higher yield and lower payout ratio.
Institutional and insider ownership
3.6% of Chesapeake Financial Shares shares are held by institutional investors. In comparison, 97.6% of National Bank shares are held by institutional investors. 39.5% of the shares of Chesapeake Financial Shares are held by insiders of the company. By comparison, 4.8% of National Bank shares are held by insiders of the company. Strong institutional ownership indicates that hedge funds, large money managers, and endowments believe a stock is poised for long-term growth.
This table compares the net margins, return on equity and return on assets of Chesapeake Financial Shares and National Bank.
|Net margins||Return on equity||return on assets|
|Chesapeake Financial Stocks||22.20%||12.82%||1.05%|
This is a breakdown of recent ratings and target prices for Chesapeake Financial Shares and National Bank, as provided by MarketBeat.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|Chesapeake Financial Stocks||0||0||0||0||N / A|
National Bank has a consensus target price of $47.00, suggesting upside potential of 7.65%. Given National Bank’s possible higher upside, analysts clearly believe that National Bank is more favorable than Chesapeake Financial stocks.
Volatility and risk
Chesapeake Financial Shares has a beta of 0.68, suggesting its stock price is 32% less volatile than the S&P 500. In comparison, National Bank has a beta of 0.89, suggesting its stock price its stock is 11% less volatile than the S&P 500.
National Bank beats Chesapeake Financial Shares on 11 out of 16 factors compared between the two stocks.
About Chesapeake Financial Stocks
(Get a rating)
Chesapeake Financial Shares, Inc. operates as a bank holding company for Chesapeake Bank which provides various banking products and services in Virginia. The company accepts checking, savings and money market accounts with and without interest, as well as certificates of deposit. It also offers mortgages, single-family and residential housing construction loans, and consumer loans; and commercial lending, including owner-occupied commercial development, retail, builders/contractors, medical, service and professional loans, hospitality, non-profit organizations, marine industry and agricultural and seafood loans. In addition, the Company provides merchant processing, accounts receivable financing, wealth and trust management, mortgage banking and cash management services. It operates through 16 branches, including 4 in Northern Neck, 3 in Middle Peninsula, 5 in Williamsburg and 4 in Richmond. The company was founded in 1900 and is based in Kilmarnock, Virginia.
About National Bank
(Get a rating)
National Bank Holdings Corporation operates as a bank holding company for NBH Bank which provides various banking products and financial services to commercial, business and consumer customers in the United States. It offers deposit products, including checking, savings, money market and other deposit accounts, including fixed rate and fixed term deposits. The Company also offers commercial and industrial loans and leases, such as working capital loans, equipment loans, lender financing loans, food and agricultural loans, government and non-profit loans, owner-occupied commercial real estate loans and other commercial loans and leases; non-owner occupied commercial real estate loans consisting of loans on commercial properties, such as office buildings, warehouse/distribution buildings, multi-family, hospitality and retail properties; small business administration loans to support manufacturers, distributors and service providers; term loans, lines of credit and secured real estate loans; residential real estate loans; and consumer loans. In addition, it offers cash management solutions including online and mobile banking, commercial credit cards, wire transfers, automated clearing house, electronic bill payment, lockbox, cash capture remote deposits, merchant processing, vault, controlled disbursements and fraud prevention services, as well as other ancillary services, including account reconciliation, collections, redemption accounts, zero balance accounts and transfer accounts. As of January 20, 2022, the company operated through a network of 81 banking centers located in Colorado, the greater Kansas City area, New Mexico, Utah and Texas. It also operates 121 ATMs. The company was previously known as NBH Holdings Corp. and changed its name to National Bank Holdings Corporation in March 2012. National Bank Holdings Corporation was incorporated in 2009 and is headquartered in Greenwood Village, Colorado.
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