Community Bank System (NYSE: CBU) and Cascade Bancorp (NASDAQ:CACB) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, risk, earnings, institutional ownership, analyst recommendations and valuation.

Analyst Ratings

This is a summary of current ratings and recommmendations for Community Bank System and Cascade Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Community Bank System 0 6 0 0 2.00
Cascade Bancorp 0 0 0 0 N/A

Community Bank System presently has a consensus price target of $55.00, suggesting a potential upside of 3.97%.

Dividends

Community Bank System pays an annual dividend of $1.36 per share and has a dividend yield of 2.6%. Cascade Bancorp does not pay a dividend. Community Bank System pays out 45.3% of its earnings in the form of a dividend. Cascade Bancorp has increased its dividend for 7 consecutive years.

Earnings and Valuation

This table compares Community Bank System and Cascade Bancorp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Community Bank System $531.88 million 5.04 $150.71 million $3.00 17.63
Cascade Bancorp N/A N/A N/A $0.30 N/A

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

Profitability

This table compares Community Bank System and Cascade Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Community Bank System 28.34% 9.18% 1.35%
Cascade Bancorp 20.91% 7.25% 0.87%

Institutional & Insider Ownership

69.1% of Community Bank System shares are held by institutional investors. Comparatively, 82.1% of Cascade Bancorp shares are held by institutional investors. 3.2% of Community Bank System shares are held by company insiders. Comparatively, 10.1% of Cascade 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.

Summary

Community Bank System beats Cascade Bancorp on 6 of the 11 factors compared between the two stocks.

About Community Bank System

Community Bank System, Inc. is a bank holding company. The Company owns two subsidiaries: Community Bank, N.A. (CBNA or the Bank) and Benefit Plans Administrative Services, Inc. (BPAS). It operates in three segments: banking, employee benefit services, and All Other. The Banking segment provides lending and depository-related products and services to individuals, businesses and municipal enterprises. The Employee benefit services segment, consisting of BPAS and its subsidiaries, provides employee benefit trust services; collective investment fund; actuarial services, and healthcare consulting services. The All Other segment consists of wealth management services, including trust services provided by the personal trust unit within the Bank, broker-dealer and investment advisory services provided by Community Investment Services, Inc. (CISI), Oneida Wealth Management, Inc. (OWM) and The Carta Group, Inc, and asset management provided by Nottingham Advisors, Inc.

About Cascade Bancorp

Cascade Bancorp is a United States-based bank holding company. The Company operates through its subsidiary, Bank of the Cascades (the Bank). The Bank is an Oregon state chartered bank. The Bank offers a range of commercial and retail banking services to its customers. It provides commercial real estate loans, real estate construction and development loans, and commercial and industrial loans, as well as consumer installment, line-of-credit, credit card and home equity loans. It also originates residential mortgage loans. It provides consumer and business deposit services, including checking, money market, time deposit accounts and related payment services, Internet banking, electronic bill payment and remote deposits. It provides trust and investment related services. As of December 31, 2015, the Bank operated 37 branches serving communities in Central, Southern and Northwest Oregon, as well as in the greater Boise/Treasure Valley, Idaho and Seattle, Washington areas.

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