Citigroup (NYSE:C) and National Commerce (NASDAQ:NCOM) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, earnings, valuation, risk and analyst recommendations.
Volatility & Risk
Citigroup has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500. Comparatively, National Commerce has a beta of 1.23, indicating that its share price is 23% more volatile than the S&P 500.
This table compares Citigroup and National Commerce’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
74.0% of Citigroup shares are owned by institutional investors. Comparatively, 51.2% of National Commerce shares are owned by institutional investors. 0.1% of Citigroup shares are owned by insiders. Comparatively, 14.2% of National Commerce shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Citigroup pays an annual dividend of $1.80 per share and has a dividend yield of 2.9%. National Commerce does not pay a dividend. Citigroup pays out 27.1% of its earnings in the form of a dividend. Citigroup has increased its dividend for 4 consecutive years.
Earnings and Valuation
This table compares Citigroup and National Commerce’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Citigroup||$97.12 billion||1.63||$18.05 billion||$6.65||9.26|
|National Commerce||$190.94 million||4.63||$42.44 million||$2.49||17.12|
Citigroup has higher revenue and earnings than National Commerce. Citigroup is trading at a lower price-to-earnings ratio than National Commerce, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations for Citigroup and National Commerce, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Citigroup presently has a consensus target price of $77.92, indicating a potential upside of 26.47%. National Commerce has a consensus target price of $42.00, indicating a potential downside of 1.45%. Given Citigroup’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Citigroup is more favorable than National Commerce.
Citigroup beats National Commerce on 11 of the 17 factors compared between the two stocks.
Citigroup Inc., a diversified financial services holding company, provides various financial products and services for consumers, corporations, governments, and institutions. The company operates through two segments, Global Consumer Banking (GCB) and Institutional Clients Group (ICG). The GCB segment offers traditional banking services to retail customers through retail banking, commercial banking, Citi-branded cards, and Citi retail services. It also provides various banking, credit card lending, and investment services through a network of local branches, offices, and electronic delivery systems. The ICG segment provides wholesale banking products and services, including fixed income and equity sales and trading, foreign exchange, prime brokerage, derivative services, equity and fixed income research, corporate lending, investment banking and advisory services, private banking, cash management, trade finance, and securities services to corporate, institutional, public sector, and high-net-worth clients. The company operates in North America, Latin America, Asia, Europe, the Middle East, and Africa. Citigroup Inc. was founded in 1812 and is based in New York, New York.
About National Commerce
National Commerce Corporation operates as the bank holding company for National Bank of Commerce that provides various financial services to businesses, business owners, and professionals. The company offers deposit products, including interest and noninterest-bearing demand deposits, money market accounts, interest-bearing transaction accounts, savings and time deposits, checking accounts, and certificates of deposit, as well as negotiable orders of withdrawal accounts. It also provides real estate loans, such as commercial real estate term, residential mortgage, and construction and land development loans, as well as home equity lines of credit secured by residential property; commercial and industrial loans; and consumer loans to purchase automobiles and other consumer durable goods. In addition, the company provides factoring, invoicing, collection, and accounts receivable management services to transportation companies, and automotive parts and service providers; and electronic banking services, including commercial and retail online banking, automated bill payment, mobile banking, and remote deposit capture. The company offers its services through 7 full-service banking offices in Birmingham, Huntsville, Auburn-Opelika, and Baldwin County, Alabama; 21 full-service banking offices in central and northeast Florida, including United Legacy Bank, Reunion Bank of Florida, Patriot Bank, and FirstAtlantic Bank names; and 2 full-service banking offices and a loan production office in Atlanta, Georgia. National Commerce Corporation was founded in 2004 and is headquartered in Birmingham, Alabama.
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