Head-To-Head Survey: People’s United Financial (PBCT) vs. Community First Bancshares (CFBI)

People’s United Financial (NASDAQ:PBCT) and Community First Bancshares (NASDAQ:CFBI) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, profitability, risk and valuation.

Volatility & Risk

People’s United Financial has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, Community First Bancshares has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500.

Profitability

This table compares People’s United Financial and Community First Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
People’s United Financial 23.98% 7.97% 1.01%
Community First Bancshares 1.35% 0.27% 0.07%

Dividends

People’s United Financial pays an annual dividend of $0.70 per share and has a dividend yield of 4.4%. Community First Bancshares does not pay a dividend. People’s United Financial pays out 67.3% of its earnings in the form of a dividend. People’s United Financial has raised its dividend for 11 consecutive years.

Insider and Institutional Ownership

78.5% of People’s United Financial shares are owned by institutional investors. Comparatively, 1.7% of Community First Bancshares shares are owned by institutional investors. 2.5% of People’s United Financial shares are owned by company insiders. Comparatively, 1.4% of Community First Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations for People’s United Financial and Community First Bancshares, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
People’s United Financial 1 4 2 0 2.14
Community First Bancshares 0 0 0 0 N/A

People’s United Financial presently has a consensus target price of $19.93, indicating a potential upside of 24.24%. Given People’s United Financial’s higher possible upside, research analysts clearly believe People’s United Financial is more favorable than Community First Bancshares.

Earnings & Valuation

This table compares People’s United Financial and Community First Bancshares’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
People’s United Financial $1.66 billion 3.38 $337.20 million $1.04 15.42
Community First Bancshares $13.68 million 6.53 N/A N/A N/A

People’s United Financial has higher revenue and earnings than Community First Bancshares.

Summary

People’s United Financial beats Community First Bancshares on 11 of the 14 factors compared between the two stocks.

About People’s United Financial

People's United Financial, Inc. operates as the bank holding company for People's United Bank, National Association that provides commercial banking, retail banking, and wealth management services to individual, corporate, and municipal customers. The company operates in two segments, Commercial Banking and Retail Banking. The Commercial Banking segment offers commercial real estate lending, commercial and industrial lending, and commercial deposit gathering services. This segment also provides equipment financing; cash management, correspondent banking, and municipal banking services; and institutional trust, corporate trust, private banking, and insurance services. The Retail Banking segment offers consumer lending, including residential mortgage and home equity lending; and consumer deposit gathering services. This segment also provides brokerage, financial advisory, investment management, life insurance, and non-institutional trust services. In addition, the company offers online banking, investment trading, and telephone banking services. It operates through a network of 403 branches, including 147 full-service stop and shop supermarket branches located in Connecticut, southeastern New York, Massachusetts, Vermont, Maine, and New Hampshire, as well as 598 ATMs. People's United Financial, Inc. was founded in 1842 and is headquartered in Bridgeport, Connecticut.

About Community First Bancshares

Community First Bancshares, Inc. operates as the holding company for Newton Federal Bank that provides various banking products and services in the United States. The company offers various deposit accounts, including checking accounts, savings accounts, and certificate of deposit accounts. It also provides one-to four-family residential real estate loans, commercial real estate loans, commercial and industrial loans, construction and land loans, and consumer loans, as well as multi-family residential real estate loans, and home equity loans and lines of credit. In addition, the company invests in securities; and offers money transfer and other banking services. It operates through a main office and two branch offices in Covington, Georgia; and a loan production office in Bogart, Georgia. The company was founded in 1928 and is based in Covington, Georgia. Community First Bancshares, Inc. is a subsidiary of Community First Bancshares, MHC.

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