Prosperity Bancshares (NYSE:PB) and Citizens Financial Services (OTCMKTS:CZFS) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, analyst recommendations, risk and institutional ownership.
Prosperity Bancshares pays an annual dividend of $1.64 per share and has a dividend yield of 2.4%. Citizens Financial Services pays an annual dividend of $1.80 per share and has a dividend yield of 3.1%. Prosperity Bancshares pays out 35.6% of its earnings in the form of a dividend. Citizens Financial Services pays out 35.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Citizens Financial Services is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares Prosperity Bancshares and Citizens Financial Services’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Prosperity Bancshares||$843.22 million||5.66||$321.81 million||$4.61||15.13|
|Citizens Financial Services||$64.49 million||3.23||$18.03 million||$5.09||11.59|
Prosperity Bancshares has higher revenue and earnings than Citizens Financial Services. Citizens Financial Services is trading at a lower price-to-earnings ratio than Prosperity Bancshares, indicating that it is currently the more affordable of the two stocks.
This table compares Prosperity Bancshares and Citizens Financial Services’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Citizens Financial Services||27.21%||13.04%||1.31%|
This is a summary of recent ratings and recommmendations for Prosperity Bancshares and Citizens Financial Services, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Citizens Financial Services||0||0||1||0||3.00|
Prosperity Bancshares currently has a consensus price target of $72.89, suggesting a potential upside of 4.53%. Given Prosperity Bancshares’ higher probable upside, analysts clearly believe Prosperity Bancshares is more favorable than Citizens Financial Services.
Volatility & Risk
Prosperity Bancshares has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500. Comparatively, Citizens Financial Services has a beta of 0.11, suggesting that its share price is 89% less volatile than the S&P 500.
Insider & Institutional Ownership
87.1% of Prosperity Bancshares shares are held by institutional investors. Comparatively, 1.5% of Citizens Financial Services shares are held by institutional investors. 4.9% of Prosperity Bancshares shares are held by company insiders. Comparatively, 12.3% of Citizens Financial Services shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Prosperity Bancshares beats Citizens Financial Services on 9 of the 15 factors compared between the two stocks.
Prosperity Bancshares Company Profile
Prosperity Bancshares, Inc. operates as bank holding company for the Prosperity Bank that provides retail and commercial banking services to small and medium-sized businesses, and consumers. It accepts various deposit products, such as demand, savings, money market, and time accounts. The company also offers 1-4 family residential mortgage, commercial mortgage and multifamily residential, commercial and industrial, agricultural real estate, and non-real estate agricultural loans, as well as construction, land development, and other land loans; consumer loans, including automobile, recreational vehicle, boat, home improvement, personal, and deposit account collateralized loans; and consumer durables and home equity loans. In addition, it provides Internet banking and other cash management, mobile banking, trust and wealth management, retail brokerage, mortgage banking, and automated telephone banking services, as well as debit and credit cards. As of December 31, 2018, the company operated 242 full service banking locations comprising 65 in the Houston area, including The Woodlands; 29 in the South Texas area consisting of Corpus Christi and Victoria; 33 in the Dallas/Fort Worth area; 22 in the East Texas area; 29 in the Central Texas area comprising Austin and San Antonio; 34 in the West Texas area, including Lubbock, Midland-Odessa and Abilene; 16 in the Bryan/College Station area; 6 in the Central Oklahoma area; and 8 in the Tulsa, Oklahoma area. Prosperity Bancshares, Inc. was founded in 1983 and is based in Houston, Texas.
Citizens Financial Services Company Profile
Citizens Financial Services, Inc. operates as the holding company for First Citizens Community Bank that provides various banking products and services for individual, business, governmental, and institutional customers. The company accepts various deposit products, such as checking, savings, and time deposit accounts. Its loan products include residential, commercial, and agricultural real estate loans; commercial and industrial loans; state and political subdivision loans; and consumer loans, as well as various other specialized financial services. The company also provides professional trust administration, investment management services, estate planning and administration, custody of securities, and individual retirement accounts. In addition, it offers brokerage and financial planning services, as well as manages oil and gas matters related to the customers land; and mutual funds, annuities, and health and life insurance products. As of December 31, 2018, the company operated 26 full-service banking branches in Potter, Tioga, Bradford, Clinton, Lebanon, Lancaster, Berks, Schuylkill, and Centre counties, Pennsylvania; and Allegany County, New York, as well as a limited branch office each in Union and Lancaster counties, Pennsylvania. Citizens Financial Services, Inc. was founded in 1984 and is headquartered in Mansfield, Pennsylvania.
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