Community Bank System (CBU) & Xenith Bankshares (XBKS) Head-To-Head Analysis

Community Bank System (NYSE: CBU) and Xenith Bankshares (NASDAQ:XBKS) are both financials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, risk, profitability and dividends.

Volatility and Risk

Community Bank System has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500. Comparatively, Xenith Bankshares has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Community Bank System and Xenith Bankshares, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Community Bank System 0 5 0 0 2.00
Xenith Bankshares 0 1 1 0 2.50

Community Bank System presently has a consensus price target of $54.00, indicating a potential downside of 2.93%. Xenith Bankshares has a consensus price target of $28.00, indicating a potential downside of 17.23%. Given Community Bank System’s higher probable upside, equities analysts plainly believe Community Bank System is more favorable than Xenith Bankshares.

Valuation and Earnings

This table compares Community Bank System and Xenith Bankshares’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Community Bank System $441.14 million 6.38 $103.81 million $2.13 26.12
Xenith Bankshares $103.54 million 7.59 $57.04 million $0.91 37.18

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

Profitability

This table compares Community Bank System and Xenith Bankshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Community Bank System 21.00% 9.22% 1.33%
Xenith Bankshares 18.26% 5.55% 0.82%

Dividends

Community Bank System pays an annual dividend of $1.36 per share and has a dividend yield of 2.4%. Xenith Bankshares does not pay a dividend. Community Bank System pays out 63.8% of its earnings in the form of a dividend. Xenith Bankshares has raised its dividend for 7 consecutive years.

Insider and Institutional Ownership

69.2% of Community Bank System shares are held by institutional investors. Comparatively, 58.7% of Xenith Bankshares shares are held by institutional investors. 3.2% of Community Bank System shares are held by company insiders. Comparatively, 31.7% of Xenith Bankshares shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Community Bank System beats Xenith Bankshares on 10 of the 17 factors compared between the two stocks.

Community Bank System Company Profile

Community Bank System, Inc. is a bank holding company. The Company owns two subsidiaries: Community Bank, N.A. (CBNA or the Bank) and Benefit Plans Administrative Services, Inc. (BPAS). It operates in three segments: banking, employee benefit services, and All Other. The Banking segment provides lending and depository-related products and services to individuals, businesses and municipal enterprises. The Employee benefit services segment, consisting of BPAS and its subsidiaries, provides employee benefit trust services; collective investment fund; actuarial services, and healthcare consulting services. The All Other segment consists of wealth management services, including trust services provided by the personal trust unit within the Bank, broker-dealer and investment advisory services provided by Community Investment Services, Inc. (CISI), Oneida Wealth Management, Inc. (OWM) and The Carta Group, Inc, and asset management provided by Nottingham Advisors, Inc.

Xenith Bankshares Company Profile

Xenith Bankshares, Inc., formerly Hampton Roads Bankshares, Inc., is a bank holding company for Xenith Bank. Xenith Bank is a commercial bank specifically targeting the banking needs of middle market and small businesses, local real estate developers and investors, and retail banking clients. Xenith Bank’s regional area of operations spans from Baltimore, Maryland, to Raleigh and eastern North Carolina, complementing its presence in greater Washington, D.C., greater Richmond, Virginia, and greater Hampton Roads, Virginia. Its service and products consist primarily of taking deposits from, and making loans to, its target customers within its target markets. It offers other banking related specialized products and services to its customers, such as travelers’ checks, coin counters, wire services, online banking and safe deposit box services. Additionally, it offers commercial customers various cash management products, including remote deposit.

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