Reviewing Cadence Bank (NYSE:CADE) and Consumers Bancorp (OTCMKTS:CBKM)

Consumers Bancorp (OTCMKTS:CBKM) and Cadence Bank (NYSE:CADE) are both financial services companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Insider & Institutional Ownership

5.0% of Consumers Bancorp shares are owned by institutional investors. Comparatively, 84.6% of Cadence Bank shares are owned by institutional investors. 7.9% of Consumers Bancorp shares are owned by insiders. Comparatively, 2.2% of Cadence Bank shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Consumers Bancorp and Cadence Bank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Consumers Bancorp	0	0	0	0	N/A
Cadence Bank	0	5	6	1	2.67

Cadence Bank has a consensus price target of $34.88, suggesting a potential upside of 6.04%. Given Cadence Bank’s higher possible upside, analysts plainly believe Cadence Bank is more favorable than Consumers Bancorp.

Profitability

This table compares Consumers Bancorp and Cadence Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Consumers Bancorp	N/A	N/A	N/A
Cadence Bank	24.42%	8.82%	0.88%

Dividends

Consumers Bancorp pays an annual dividend of $0.48 per share and has a dividend yield of 2.6%. Cadence Bank pays an annual dividend of $1.00 per share and has a dividend yield of 3.0%. Consumers Bancorp pays out 44.1% of its earnings in the form of a dividend. Cadence Bank pays out 31.9% 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. Cadence Bank has increased its dividend for 13 consecutive years. Cadence Bank is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares Consumers Bancorp and Cadence Bank”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Consumers Bancorp	N/A	N/A	N/A	$1.09	16.76
Cadence Bank	$921.95 million	6.50	$542.30 million	$3.13	10.51

Cadence Bank has higher revenue and earnings than Consumers Bancorp. Cadence Bank is trading at a lower price-to-earnings ratio than Consumers Bancorp, indicating that it is currently the more affordable of the two stocks.

Summary

Cadence Bank beats Consumers Bancorp on 12 of the 14 factors compared between the two stocks.

About Consumers Bancorp

Consumers Bancorp, Inc. operates as the bank holding company for the Consumers National Bank that provides various commercial and retail banking products and services for individuals, farmers, and small and medium-sized businesses. The company accepts various deposit products, such as checking, savings, certificates of deposit, and individual retirement accounts. It also provides commercial loans, which include financing for equipment, inventories, and accounts receivable; commercial real estate loans, including mortgage loans to farmers, owners of multi-family investment properties, developers, and owners of commercial real estate; residential real estate loans comprising one to four family residential real estate and home equity loans; and consumer loans consisting of recreation, personal, automobile loans, personal lines of credit, and unsecured consumer loans. In addition, the company invests in securities consisting of obligations of the United States government sponsored entities, municipal obligations, and mortgage-backed securities. Further, it offers small business administration, business term, commercial construction, agricultural, and equipment loans; credit and debit cards; ATMs; and online and mobile banking, as well as cash management services. Consumers Bancorp, Inc. was founded in 1965 and is headquartered in Minerva, Ohio.

About Cadence Bank

Cadence Bank provides commercial banking and financial services. Its products and services include consumer banking, consumer loans, mortgages, home equity lines and loans, credit cards, commercial and business banking, treasury management, specialized and asset-based lending, commercial real estate, equipment financing, and correspondent banking services. The company’s products and services also comprise small business administration lending, foreign exchange, wealth management, investment and trust, financial planning, retirement plan management, and personal and business insurance services. Cadence Bank was founded in 1876 and is headquartered in Tupelo, Mississippi.