Reviewing Century Bancorp (CNBKA) and Its Rivals

Century Bancorp (NASDAQ: CNBKA) is one of 315 publicly-traded companies in the “Banks” industry, but how does it compare to its competitors? We will compare Century Bancorp to related businesses based on the strength of its valuation, profitability, earnings, institutional ownership, analyst recommendations, dividends and risk.

Dividends

Century Bancorp pays an annual dividend of $0.48 per share and has a dividend yield of 0.6%. Century Bancorp pays out 12.0% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 1.9% and pay out 36.9% of their earnings in the form of a dividend.

Risk and Volatility

Century Bancorp has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, Century Bancorp’s competitors have a beta of 0.76, suggesting that their average share price is 24% less volatile than the S&P 500.

Earnings & Valuation

This table compares Century Bancorp and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Century Bancorp $129.99 million $22.30 million 19.36
Century Bancorp Competitors $5.59 billion $772.66 million 393.66

Century Bancorp’s competitors have higher revenue and earnings than Century Bancorp. Century Bancorp is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

35.4% of Century Bancorp shares are held by institutional investors. Comparatively, 51.7% of shares of all “Banks” companies are held by institutional investors. 36.9% of Century Bancorp shares are held by company insiders. Comparatively, 10.4% of shares of all “Banks” companies 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.

Profitability

This table compares Century Bancorp and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Century Bancorp 17.16% 12.08% 0.67%
Century Bancorp Competitors 17.35% 7.89% 0.94%

Analyst Recommendations

This is a summary of recent ratings and price targets for Century Bancorp and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Century Bancorp 0 0 0 0 N/A
Century Bancorp Competitors 2537 9195 9070 382 2.34

As a group, “Banks” companies have a potential downside of 2.03%. Given Century Bancorp’s competitors higher possible upside, analysts clearly believe Century Bancorp has less favorable growth aspects than its competitors.

Summary

Century Bancorp competitors beat Century Bancorp on 9 of the 12 factors compared.

About Century Bancorp

Century Bancorp, Inc. is a state-chartered bank holding company. The Company has a banking subsidiary: Century Bank and Trust Company (the Bank). The Company offers a range of services to commercial enterprises, state and local Governments and agencies, non-profit organizations and individuals. It operates approximately 30 banking offices in 20 cities and towns in Massachusetts, ranging from Braintree in the south to Andover in the north. The Bank’s customers consist primarily of small and medium-sized businesses and retail customers, as well as local governments and institutions throughout Massachusetts, New Hampshire, Rhode Island, Connecticut and New York. It provides commercial loans; real estate and construction loans, and consumer loans, and accepts savings, time and demand deposits. In addition, it offers automated lock box collection services, cash management services and account reconciliation services to its corporate and institutional customers.

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