Head-to-head analysis: Chesapeake Financial Shares (OTCMKTS:CPKF) and American National Bankshares (NASDAQ:AMNB)
American National Bankshares (NASDAQ:AMNB – Get Rating) and Chesapeake Financial Shares (OTCMKTS:CPKF – Get Rating) are both small cap financials, but which stock is superior? We’ll compare the two companies based on their dividend strength, valuation, analyst recommendations, profitability, institutional ownership, earnings and risk.
Institutional and Insider Ownership
39.8% of American National Bankshares shares are held by institutional investors. By comparison, 3.6% of Chesapeake Financial Shares shares are held by institutional investors. 4.0% of the shares of American National Bankshares are held by insiders of the company. By comparison, 39.5% of Chesapeake Financial Shares stock is held by insiders of the company. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a company will outperform the market over the long term.
Valuation and benefits
This table compares the gross earnings, earnings per share (EPS), and valuation of American National Bankshares and Chesapeake Financial Shares.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|US National Bank Stocks||$116.83 million||3.19||$43.53 million||$3.82||9.10|
|Chesapeake Financial Stocks||$64.21 million||1.91||$15.01 million||$2.92||8.90|
American National Bankshares has higher revenue and profit than Chesapeake Financial Shares. Chesapeake financial stocks are trading at a lower price-to-earnings ratio than US National Bank stocks, indicating that they are currently the more affordable of the two stocks.
This table compares the net margins, return on equity and return on assets of American National Bankshares and Chesapeake Financial Shares.
|Net margins||Return on equity||return on assets|
|US National Bank Stocks||36.26%||11.75%||1.26%|
|Chesapeake Financial Stocks||22.15%||11.57%||1.05%|
This is a summary of the current recommendations for American National Bankshares and Chesapeake Financial Shares, as reported by MarketBeat.com.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|US National Bank Stocks||0||0||2||0||3.00|
|Chesapeake Financial Stocks||0||0||0||0||N / A|
American National Bankshares currently has a consensus target price of $38.25, suggesting a potential upside of 10.04%. Given the higher potential upside of American National Bankshares, analysts clearly believe that American National Bankshares is more favorable than Chesapeake Financial Shares.
Risk and Volatility
American National Bankshares has a beta of 0.99, meaning its stock price is 1% less volatile than the S&P 500. Comparatively, Chesapeake Financial Shares has a beta of 0.72, meaning its stock price is 28% less volatile than the S&P 500.
American National Bankshares pays an annual dividend of $1.12 per share and has a dividend yield of 3.2%. Chesapeake Financial Shares pays an annual dividend of $0.56 per share and has a dividend yield of 2.2%. American National Bankshares pays 29.3% of its profits as a dividend. Chesapeake Financial Shares pays 19.2% of its earnings as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. American National Bankshares has increased its dividend for 1 consecutive years. American National Bankshares is clearly the best dividend stock, given its higher yield and longer track record of dividend growth.
American National Bankshares beats Chesapeake Financial Shares on 14 out of 16 factors compared between the two stocks.
American National Bankshares Company Profile (Get an assessment)
American National Bankshares Inc. operates as a bank holding company for American National Bank and Trust Company which provides financial products and services. The Company operates in two segments, Community Banking and Wealth Management. It accepts deposit products including checks, money market, savings, and term deposits from consumers and businesses. The Companyâ€™s lending products include commercial and residential real estate loans, small and medium business commercial loans, construction and land development loans, home equity loans, mortgage loans and the consumption. It also offers wealth management services, including estate planning, trust account administration and retail brokerage services; investment management services, such as purchasing stocks, fixed income securities and mutual fund investments for client accounts; online and telephone banking; and insurance services, and operates 37 ATMs. As of December 31, 2021, the company operated 26 banking offices in south-central Virginia and north-central North Carolina; and a loan origination office in Roanoke, Virginia. American National Bankshares Inc. was founded in 1909 and is based in Danville, Virginia.
Chesapeake Financial Shares Company Profile (Get an assessment)
Chesapeake Financial Shares, Inc. operates as a bank holding company for Chesapeake Bank which provides various banking products and services in Virginia. The company accepts checking, savings and money market accounts with and without interest, as well as certificates of deposit. It also offers mortgages, single-family and residential housing construction loans, and consumer loans; and commercial lending, including owner-occupied commercial development, retail, builders/contractors, medical, service and professional loans, hospitality, non-profit organizations, marine industry and agricultural and seafood loans. In addition, the Company provides merchant processing, accounts receivable funding, wealth and trust management, mortgage banking and cash management services. It operates through 16 branches, including 4 in Northern Neck, 3 in Middle Peninsula, 5 in Williamsburg and 4 in Richmond. The company was founded in 1900 and is based in Kilmarnock, Virginia.
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