Allegiance Bancshares (NASDAQ:ABTX) vs. Commercial National Financial (NASDAQ:CEFC) Critical Analysis

Allegiance Bancshares (NASDAQ:ABTX) and Commercial National Financial (OTCMKTS:CEFC) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, earnings, profitability, valuation, risk, institutional ownership and dividends.

Volatility & Risk

Allegiance Bancshares has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500. Comparatively, Commercial National Financial has a beta of 0.12, meaning that its share price is 88% less volatile than the S&P 500.

Valuation & Earnings

This table compares Allegiance Bancshares and Commercial National Financial’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Allegiance Bancshares $165.94 million 4.35 $37.31 million $2.52 13.75
Commercial National Financial $21.24 million 2.09 $4.50 million N/A N/A

Allegiance Bancshares has higher revenue and earnings than Commercial National Financial.

Profitability

This table compares Allegiance Bancshares and Commercial National Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Allegiance Bancshares 21.42% 7.65% 1.13%
Commercial National Financial 21.35% N/A N/A

Insider and Institutional Ownership

33.3% of Allegiance Bancshares shares are held by institutional investors. Comparatively, 0.2% of Commercial National Financial shares are held by institutional investors. 10.2% of Allegiance Bancshares shares are held by company insiders. Comparatively, 23.0% of Commercial National Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Commercial National Financial pays an annual dividend of $0.52 per share and has a dividend yield of 4.6%. Allegiance Bancshares does not pay a dividend.

Analyst Ratings

This is a summary of current ratings and target prices for Allegiance Bancshares and Commercial National Financial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Allegiance Bancshares 0 3 0 0 2.00
Commercial National Financial 0 0 0 0 N/A

Allegiance Bancshares presently has a consensus price target of $37.42, indicating a potential upside of 7.99%. Given Allegiance Bancshares’ higher probable upside, equities analysts clearly believe Allegiance Bancshares is more favorable than Commercial National Financial.

Summary

Allegiance Bancshares beats Commercial National Financial on 10 of the 12 factors compared between the two stocks.

Allegiance Bancshares Company Profile

Allegiance Bancshares, Inc. operates as the bank holding company for Allegiance Bank that provides a range of commercial banking services primarily to small and medium-sized businesses, professionals, and individual customers. It accepts deposit products, including checking accounts, commercial accounts, and savings accounts, as well as other time deposits comprising money market accounts and certificates of deposit. The company also grants various loan products, which include commercial and industrial loans; mortgage warehouse loans; commercial real estate loans, including multi-family residential loans; commercial real estate construction and land development loans; residential real estate loans, such as 1-4 family residential mortgage loans; residential construction loans; and consumer and other loans. In addition, it offers automated teller machines, drive-through services, and depository facilities; mobile banking services; and telephone, mail, and Internet banking services. Further, the company provides safe deposit boxes, debit cards, cash management and wire transfer services, night depository services, direct deposits, cashier's checks, and letters of credit. As of December 31, 2018, it operated 27 bank offices and 1 loan production office in the Houston metropolitan area, as well as 1 bank office location in Beaumont. The company was founded in 2007 and is headquartered in Houston, Texas.

Commercial National Financial Company Profile

Commercial National Financial Corporation operates as the holding company for Commercial Bank that provides various banking products and services to individuals, agricultural businesses, commercial businesses, and light industries in Michigan. It accepts various deposit products, including checking and savings accounts, individual retirement accounts, certificates of deposit, and health savings accounts. The company also offers personal loan products, such as automobile loans, recreational vehicle loans, personal lines of credit, and unsecured term loans, as well as home equity loans and mortgage loans; and business loans, including secured lines of credit, business equity line of credit, SBA loans, equipment loans, real estate loans, vehicle loans, term loans, USDA loan programs, and capital access loan programs. It also provides other services comprising business VISA check cards, debit and ATM cards, business statement savings, business certificates of deposit, merchant bankcard referrals, night depository, cash management, telephone banking, online banking, e-statements, direct deposit of payroll for employees, federal and state tax payments, child support payments, collection of receivables, and remote deposit capture. The company provides its services through 12 offices located in Barry, Gratiot, Ingham, Ionia, Isabella, Kent, and Montcalm counties in Michigan. Commercial National Financial Corporation was founded in 1893 and is headquartered in Ithaca, Michigan.

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