Cass Information Systems (CASS) vs. Its Competitors Head to Head Analysis

Cass Information Systems (NASDAQ: CASS) is one of 30 publicly-traded companies in the “Transaction & Payment Services” industry, but how does it contrast to its peers? We will compare Cass Information Systems to related companies based on the strength of its risk, profitability, valuation, dividends, earnings, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

47.4% of Cass Information Systems shares are owned by institutional investors. Comparatively, 58.3% of shares of all “Transaction & Payment Services” companies are owned by institutional investors. 5.0% of Cass Information Systems shares are owned by insiders. Comparatively, 19.9% of shares of all “Transaction & Payment Services” companies 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.

Profitability

This table compares Cass Information Systems and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cass Information Systems 18.49% 12.22% 1.75%
Cass Information Systems Competitors 7.33% 14.33% 3.58%

Dividends

Cass Information Systems pays an annual dividend of $0.96 per share and has a dividend yield of 1.6%. Cass Information Systems pays out 47.5% of its earnings in the form of a dividend. As a group, “Transaction & Payment Services” companies pay a dividend yield of 1.3% and pay out 52.6% of their earnings in the form of a dividend. Cass Information Systems has increased its dividend for 13 consecutive years. Cass Information Systems is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares Cass Information Systems and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Cass Information Systems $135.30 million $25.01 million 29.06
Cass Information Systems Competitors $2.39 billion $225.84 million 813.49

Cass Information Systems’ peers have higher revenue and earnings than Cass Information Systems. Cass Information Systems is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

Cass Information Systems has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, Cass Information Systems’ peers have a beta of 1.28, meaning that their average share price is 28% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Cass Information Systems and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cass Information Systems 0 0 0 0 N/A
Cass Information Systems Competitors 149 770 1109 17 2.49

As a group, “Transaction & Payment Services” companies have a potential upside of 10.76%. Given Cass Information Systems’ peers higher possible upside, analysts plainly believe Cass Information Systems has less favorable growth aspects than its peers.

Summary

Cass Information Systems peers beat Cass Information Systems on 9 of the 12 factors compared.

About Cass Information Systems

Cass Information Systems, Inc. (Cass) is a provider of payment and information processing services to manufacturing, distribution and retail enterprises across the United States with operating locations in Missouri, Ohio, Massachusetts, South Carolina and Florida. The Company provides transportation invoice rating, payment processing, auditing, accounting and transportation information. It is also a processor and payer of energy invoices, including electricity, gas, waste, and other facility related expenses. The Company operates in two segments: Information Services and Banking Services. The Information Services segment provides transportation, energy, telecommunication, and environmental invoice processing and payment services to large corporations. The Banking Services segment provides banking services primarily to privately held businesses and churches. The Company, through its bank subsidiary, Cass Commercial Bank (the Bank), provides commercial banking services.

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