Financial Analysis: Cambridge Bancorp (CATC) versus The Competition
Cambridge Bancorp (NASDAQ: CATC) is one of 270 publicly-traded companies in the “State commercial banks” industry, but how does it compare to its peers? We will compare Cambridge Bancorp to similar businesses based on the strength of its valuation, profitability, analyst recommendations, dividends, earnings, risk and institutional ownership.
Risk & Volatility
Cambridge Bancorp has a beta of 0.12, suggesting that its share price is 88% less volatile than the S&P 500. Comparatively, Cambridge Bancorp’s peers have a beta of 0.78, suggesting that their average share price is 22% less volatile than the S&P 500.
This is a summary of current ratings for Cambridge Bancorp and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cambridge Bancorp Competitors||3582||8788||6032||370||2.17|
Cambridge Bancorp presently has a consensus price target of $86.67, suggesting a potential upside of 19.80%. As a group, “State commercial banks” companies have a potential upside of 215.64%. Given Cambridge Bancorp’s peers higher possible upside, analysts clearly believe Cambridge Bancorp has less favorable growth aspects than its peers.
Earnings and Valuation
This table compares Cambridge Bancorp and its peers top-line revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Cambridge Bancorp||$132.74 million||$25.26 million||11.67|
|Cambridge Bancorp Competitors||$1.70 billion||$257.56 million||12.59|
Cambridge Bancorp’s peers have higher revenue and earnings than Cambridge Bancorp. Cambridge Bancorp is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
This table compares Cambridge Bancorp and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cambridge Bancorp Competitors||21.91%||10.55%||1.19%|
Cambridge Bancorp pays an annual dividend of $2.12 per share and has a dividend yield of 2.9%. Cambridge Bancorp pays out 34.2% of its earnings in the form of a dividend. As a group, “State commercial banks” companies pay a dividend yield of 2.4% and pay out 29.7% of their earnings in the form of a dividend. Cambridge Bancorp has increased its dividend for 2 consecutive years.
Insider & Institutional Ownership
35.7% of Cambridge Bancorp shares are held by institutional investors. Comparatively, 48.0% of shares of all “State commercial banks” companies are held by institutional investors. 2.3% of Cambridge Bancorp shares are held by insiders. Comparatively, 11.2% of shares of all “State commercial banks” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Cambridge Bancorp peers beat Cambridge Bancorp on 10 of the 15 factors compared.
About Cambridge Bancorp
Cambridge Bancorp operates as the bank holding company for Cambridge Trust Company that provides commercial and consumer banking, and investment management and trust services. The company accepts various deposits, such as checking and savings accounts, certificates of deposit, money market accounts, individual retirement accounts, and time and demand deposits. Its loans products include residential and commercial real estate loans; home equity lines of credit and term loans; commercial and industrial loans; secured and unsecured loans, lines of credit, and personal installment loans; and construction loans. The company also offers cash management, online and mobile banking, and payments services. It serves commercial enterprises, non-profit organizations, and individuals. The company operates 10 Massachusetts locations in Cambridge, Boston, Belmont, Concord, Lexington, and Weston; and wealth management offices in Boston, Massachusetts, as well as in Concord, Manchester, and Portsmouth, New Hampshire. Cambridge Bancorp was founded in 1890 and is headquartered in Cambridge, Massachusetts.
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