Associated Banc (NYSE:ASB – Get Free Report) and CrossFirst Bankshares (NASDAQ:CFB – Get Free Report) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.
Risk and Volatility
Associated Banc has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500. Comparatively, CrossFirst Bankshares has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Associated Banc and CrossFirst Bankshares, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Associated Banc | 0 | 9 | 1 | 0 | 2.10 |
| CrossFirst Bankshares | 0 | 0 | 4 | 0 | 3.00 |
Earnings and Valuation
This table compares Associated Banc and CrossFirst Bankshares”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Associated Banc | $1.09 billion | 3.57 | $182.96 million | $1.20 | 21.43 |
| CrossFirst Bankshares | $254.34 million | 3.30 | $66.67 million | $1.47 | 11.56 |
Associated Banc has higher revenue and earnings than CrossFirst Bankshares. CrossFirst Bankshares is trading at a lower price-to-earnings ratio than Associated Banc, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Associated Banc and CrossFirst Bankshares’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Associated Banc | 8.15% | 8.18% | 0.80% |
| CrossFirst Bankshares | 14.52% | 10.72% | 1.04% |
Institutional and Insider Ownership
83.0% of Associated Banc shares are owned by institutional investors. Comparatively, 56.3% of CrossFirst Bankshares shares are owned by institutional investors. 1.5% of Associated Banc shares are owned by company insiders. Comparatively, 9.3% of CrossFirst Bankshares shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Summary
CrossFirst Bankshares beats Associated Banc on 9 of the 14 factors compared between the two stocks.
About Associated Banc
Associated Banc-Corp, a bank holding company, provides various banking and nonbanking products to individuals and businesses in Wisconsin, Illinois, and Minnesota. The company offers lending solutions, including commercial loans and lines of credit, commercial real estate financing, construction loans, letters of credit, leasing, asset based lending and equipment finance, loan syndications products, residential mortgages, home equity loans and lines of credit, personal and installment loans, auto finance and business loans, and business lines of credit. It also provides deposit and cash management solutions, such as commercial checking and interest-bearing deposit products, cash vault and night depository services, liquidity solutions, payables and receivables solutions, and information services; specialized financial services, such as interest rate risk management and foreign exchange solutions; fiduciary services, such as administration of pension, profit-sharing and other employee benefit plans, fiduciary and corporate agency services, and institutional asset management services; and investable funds solutions, including savings, money market deposit accounts, IRA accounts, CDs, fixed and variable annuities, full-service, discount, and online investment brokerage; investment advisory services; and trust and investment management accounts. In addition, the company offers deposit and transactional solutions, including checking, credit, debit and pre-paid cards, online banking and bill pay; and money transfer services. Associated Banc-Corp was founded in 1861 and is headquartered in Green Bay, Wisconsin.
About CrossFirst Bankshares
CrossFirst Bankshares, Inc. operates as the bank holding company for CrossFirst Bank that provides various banking and financial services to businesses, business owners, professionals, and its personal networks. The company offers commercial and industrial loans, including enterprise value lending; commercial real estate loans; construction and development loans, such as home builder lending; residential real estate, multifamily real estate, energy, SBA, and consumer loans; and credit cards. It also provides deposit banking products, including personal and business checking and savings accounts; treasury management services; money market accounts; certificates of deposits; negotiable order of withdrawal accounts; automated teller machine access; and mobile banking and international banking services, as well as non-interest-bearing demand deposits and interest-bearing deposits, including transaction accounts. In addition, the company acquires brokered deposits, internet subscription certificates of deposit, and reciprocal deposits. Further, it holds investments in marketable securities. The company serves its clients though branch network, as well as digital banking products. It has full-service banking offices in Kansas, Missouri, Oklahoma, Texas, Arizona, Colorado, and New Mexico. CrossFirst Bankshares, Inc. was founded in 2007 and is headquartered in Leawood, Kansas.
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