Comparing Westamerica Bancorporation (NASDAQ:WABC) and Camden National (NASDAQ:CAC)

Westamerica Bancorporation (NASDAQ:WABC) and Camden National (NASDAQ:CAC) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their institutional ownership, earnings, profitability, analyst recommendations, dividends, valuation and risk.

Dividends

Westamerica Bancorporation pays an annual dividend of $1.76 per share and has a dividend yield of 3.4%. Camden National pays an annual dividend of $1.68 per share and has a dividend yield of 4.0%. Westamerica Bancorporation pays out 32.1% of its earnings in the form of a dividend. Camden National pays out 52.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Westamerica Bancorporation has increased its dividend for 32 consecutive years.

Profitability

This table compares Westamerica Bancorporation and Camden National’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Westamerica Bancorporation	45.73%	17.67%	2.30%
Camden National	16.47%	10.09%	0.88%

Valuation and Earnings

This table compares Westamerica Bancorporation and Camden National”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Westamerica Bancorporation	$327.54 million	4.20	$161.77 million	$5.49	9.38
Camden National	$257.28 million	2.38	$43.38 million	$3.20	13.15

Westamerica Bancorporation has higher revenue and earnings than Camden National. Westamerica Bancorporation is trading at a lower price-to-earnings ratio than Camden National, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings for Westamerica Bancorporation and Camden National, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Westamerica Bancorporation	0	3	0	0	2.00
Camden National	0	2	0	0	2.00

Westamerica Bancorporation presently has a consensus target price of $57.00, indicating a potential upside of 10.68%. Camden National has a consensus target price of $41.50, indicating a potential downside of 1.38%. Given Westamerica Bancorporation’s higher possible upside, equities analysts plainly believe Westamerica Bancorporation is more favorable than Camden National.

Volatility and Risk

Westamerica Bancorporation has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500. Comparatively, Camden National has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500.

Institutional and Insider Ownership

81.9% of Westamerica Bancorporation shares are owned by institutional investors. Comparatively, 77.4% of Camden National shares are owned by institutional investors. 4.4% of Westamerica Bancorporation shares are owned by company insiders. Comparatively, 1.9% of Camden National shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Westamerica Bancorporation beats Camden National on 12 of the 15 factors compared between the two stocks.

About Westamerica Bancorporation

Westamerica Bancorporation operates as a bank holding company for the Westamerica Bank that provides various banking products and services to individual and commercial customers. The company accepts various deposit products, including retail savings and checking accounts, as well as certificates of deposit. Its loan portfolio includes commercial, commercial and residential real estate, real estate construction, and consumer installment loans, as well as indirect automobile loans. The company was formerly known as Independent Bankshares Corporation and changed its name to Westamerica Bancorporation in 1983. The company was founded in 1884 and is headquartered in San Rafael, California.

About Camden National

Camden National Corporation operates as the bank holding company for Camden National Bank that provides various commercial and consumer banking products and services for consumer, institutional, municipal, non-profit, and commercial customers in Maine, New Hampshire, and Massachusetts. The company accepts checking, savings, time, and brokered deposits, as well as deposits with the certificate of deposit account registry system. Its loan products include non-owner-occupied commercial estate loans, owner-occupied commercial real estate loans, unsecured fully-guaranteed commercial loans backed by the small business administration, loans secured by one-to four-family properties, and consumer and home equity loans. The company also provides brokerage and insurance services through its financial offerings consisting of college, retirement, estate planning, mutual funds, strategic asset management accounts, and variable and fixed annuities. Further, it offers a range of fiduciary and asset management, wealth management, investment management, financial planning, and trustee services. Camden National Corporation was founded in 1875 and is headquartered in Camden, Maine.