Comerica (NYSE:CMA) and Omni Financial Services (OTCMKTS:OFSI) Critical Analysis

Comerica (NYSE:CMA) and Omni Financial Services (OTCMKTS:OFSI) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, valuation and earnings.

Valuation & Earnings

This table compares Comerica and Omni Financial Services”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Comerica	$3.29 billion	2.40	$881.00 million	$5.03	11.81
Omni Financial Services	N/A	N/A	N/A	N/A	N/A

Comerica has higher revenue and earnings than Omni Financial Services.

Profitability

This table compares Comerica and Omni Financial Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Comerica	12.15%	15.01%	1.00%
Omni Financial Services	N/A	N/A	N/A

Risk & Volatility

Comerica has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500. Comparatively, Omni Financial Services has a beta of 3.26, indicating that its stock price is 226% more volatile than the S&P 500.

Institutional and Insider Ownership

80.7% of Comerica shares are owned by institutional investors. 0.2% of Comerica shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for Comerica and Omni Financial Services, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Comerica	2	11	8	0	2.29
Omni Financial Services	0	0	0	0	N/A

Comerica presently has a consensus price target of $58.24, indicating a potential downside of 1.92%. Given Comerica’s higher possible upside, equities research analysts plainly believe Comerica is more favorable than Omni Financial Services.

Summary

Comerica beats Omni Financial Services on 8 of the 9 factors compared between the two stocks.

About Comerica

Comerica Incorporated, through its subsidiaries, provides various financial products and services. The company operates through Commercial Bank, Retail Bank, Wealth Management, and Finance segments. The Commercial Bank segment offers various products and services, including commercial loans and lines of credit, deposits, cash management, payment solutions, card services, capital market products, international trade finance, letters of credit, foreign exchange management services, and loan syndication services for small and middle market businesses, multinational corporations, and governmental entities. The Retail Bank segment provides personal financial services, such as consumer lending, consumer deposit gathering, and mortgage loan origination; and various consumer products that include deposit accounts, installment loans, credit cards, student loans, home equity lines of credit, and residential mortgage loans. The Wealth Management segment offers products and services comprising financial planning, trust and fiduciary services, investment management and advisory, brokerage, private banking, and business transition planning services for affluents, high-net worth and ultra-high-net-worth individuals and families, business owners, and executives, and institutional clients. The Finance segment comprises securities portfolio, and asset and liability management activities. It operates in Texas, California, Michigan, Arizona, and Florida, the United States; and Canada and Mexico. The company was formerly known as DETROITBANK Corporation and changed its name to Comerica Incorporated in July 1982. Comerica Incorporated was founded in 1849 and is headquartered in Dallas, Texas.

About Omni Financial Services

OMNI Financial Services, Inc. provides various financial products and services to individuals, professionals, and business owners. The company offers deferred annuities, fixed annuities, and immediate annuities; and group medical, key employee, survivor life, disability, fixed life, long term care, and term life insurance products. It also provides college funding, retirement, and estate planning services. The company was founded in 1976 and is headquartered in Fort Myers, Florida.