Citigroup (NYSE:C) and Sturgis Bancorp (OTCMKTS:STBI) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, institutional ownership and risk.

Volatility and Risk

Citigroup has a beta of 1.81, suggesting that its share price is 81% more volatile than the S&P 500. Comparatively, Sturgis Bancorp has a beta of 0.25, suggesting that its share price is 75% less volatile than the S&P 500.

Profitability

This table compares Citigroup and Sturgis Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Citigroup 18.75% 10.32% 0.93%
Sturgis Bancorp 19.95% N/A N/A

Valuation and Earnings

This table compares Citigroup and Sturgis Bancorp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Citigroup $103.45 billion 1.62 $19.40 billion $7.58 10.12
Sturgis Bancorp $24.69 million 1.86 $4.93 million N/A N/A

Citigroup has higher revenue and earnings than Sturgis Bancorp.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Citigroup and Sturgis Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Citigroup 0 3 16 0 2.84
Sturgis Bancorp 0 0 0 0 N/A

Citigroup currently has a consensus price target of $89.86, indicating a potential upside of 17.14%. Given Citigroup’s higher probable upside, equities analysts plainly believe Citigroup is more favorable than Sturgis Bancorp.

Institutional & Insider Ownership

77.0% of Citigroup shares are held by institutional investors. 0.1% of Citigroup shares are held by insiders. Comparatively, 16.0% of Sturgis Bancorp shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Citigroup pays an annual dividend of $2.04 per share and has a dividend yield of 2.7%. Sturgis Bancorp pays an annual dividend of $0.60 per share and has a dividend yield of 2.8%. Citigroup pays out 26.9% of its earnings in the form of a dividend. Citigroup has raised its dividend for 5 consecutive years.

Summary

Citigroup beats Sturgis Bancorp on 10 of the 15 factors compared between the two stocks.

Citigroup Company Profile

Citigroup Inc., a diversified financial services holding company, provides various financial products and services for consumers, corporations, governments, and institutions in North America, Latin America, Asia, Europe, the Middle East, and Africa. The company operates through two segments, Global Consumer Banking (GCB) and Institutional Clients Group (ICG). The GCB segment offers traditional banking services to retail customers through retail banking, commercial banking, Citi-branded cards, and Citi retail services. It also provides various banking, credit card lending, and investment services through a network of local branches, offices, and electronic delivery systems. The ICG segment provides wholesale banking products and services, including fixed income and equity sales and trading, foreign exchange, prime brokerage, derivative services, equity and fixed income research, corporate and consumer loans, investment banking and advisory services, private banking, cash management, trade finance, and securities services to corporate, institutional, public sector, and high-net-worth clients. As of December 31, 2018, it operated 2,410 branches in the United States, Mexico, and Asia. Citigroup Inc. was founded in 1812 and is headquartered in New York, New York.

Sturgis Bancorp Company Profile

Sturgis Bancorp, Inc., a financial holding company, through its subsidiary, Sturgis Bank & Trust, provides banking products and services to individuals and businesses in the United States. The company offers checking, savings, money market, and sweep accounts; and certificates of deposit and individual retirement accounts. It also provides mortgage, automobile, savings and CD, personal, auto and recreational vehicle, commercial real estate, equipment and machinery, and government supported loans, as well as home equity lines of credit and business lines of credit. In addition, the company offers mortgage life, mortgage accidental death, and mortgage disability insurance products; and other personal banking services, such as private banking, cashier checks, wire transfers, money orders, foreign drafts and foreign currency, overdraft protection, night depository, and notary services, as well as safe deposit boxes. Further, it provides Internet and phone banking, Internet bill pay, direct deposit, Visa check card, merchant, CDARS, and remote deposit capture services; and wealth management and investment brokerage advisory services, as well as cash management services and e-statements. The company has branch offices in Bangor, Bronson, Centreville, Climax, Colon, South Haven, Sturgis, Three Rivers, and White Pigeon in Michigan. Sturgis Bancorp, Inc. was founded in 1905 and is headquartered in Sturgis, Michigan.

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