Analyzing Cass Information Systems (CASS) & Its Rivals

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Cass Information Systems and its rivals, 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 150 773 1116 17 2.49

As a group, “Transaction & Payment Services” companies have a potential upside of 10.26%. Given Cass Information Systems’ rivals higher possible upside, analysts plainly believe Cass Information Systems has less favorable growth aspects than its rivals.

Insider and Institutional Ownership

50.2% of Cass Information Systems shares are held by institutional investors. Comparatively, 58.4% of shares of all “Transaction & Payment Services” companies are held by institutional investors. 5.0% of Cass Information Systems shares are held by insiders. Comparatively, 19.9% of shares of all “Transaction & Payment Services” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Cass Information Systems and its rivals gross revenue, earnings per share (EPS) 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 $254.60 million 878.80

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

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 0.9% and pay out 31.0% of their earnings in the form of a dividend. Cass Information Systems has raised its dividend for 13 consecutive years.

Volatility and Risk

Cass Information Systems has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500. Comparatively, Cass Information Systems’ rivals have a beta of 1.24, suggesting that their average stock price is 24% more volatile than the S&P 500.

Profitability

This table compares Cass Information Systems and its rivals’ 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%

Summary

Cass Information Systems rivals 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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