Comparing Community Shores Bank (CSHB) and Associated Banc (ASB)

Community Shores Bank (OTCMKTS:CSHB) and Associated Banc (NYSE:ASB) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Dividends

Associated Banc pays an annual dividend of $0.60 per share and has a dividend yield of 2.6%. Community Shores Bank does not pay a dividend. Associated Banc pays out 39.5% of its earnings in the form of a dividend. Associated Banc has increased its dividend for 2 consecutive years.

Valuation and Earnings

This table compares Community Shores Bank and Associated Banc’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Community Shores Bank $8.94 million 1.30 -$980,000.00 N/A N/A
Associated Banc $1.22 billion 3.10 $229.26 million $1.52 15.01

Associated Banc has higher revenue and earnings than Community Shores Bank.

Profitability

This table compares Community Shores Bank and Associated Banc’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Community Shores Bank N/A N/A N/A
Associated Banc 20.53% 9.44% 0.99%

Institutional & Insider Ownership

77.8% of Associated Banc shares are owned by institutional investors. 39.7% of Community Shores Bank shares are owned by company insiders. Comparatively, 2.1% of Associated Banc shares are owned 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.

Risk and Volatility

Community Shores Bank has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500. Comparatively, Associated Banc has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Community Shores Bank and Associated Banc, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Community Shores Bank 0 0 0 0 N/A
Associated Banc 0 9 1 0 2.10

Associated Banc has a consensus price target of $27.75, suggesting a potential upside of 21.60%. Given Associated Banc’s higher probable upside, analysts clearly believe Associated Banc is more favorable than Community Shores Bank.

Summary

Associated Banc beats Community Shores Bank on 12 of the 14 factors compared between the two stocks.

Community Shores Bank Company Profile

Community Shores Bank Corporation operates as the holding company for Community Shores Bank, a community bank that provides various commercial and consumer banking services primarily in the communities of Muskegon County and Northern Ottawa County, Michigan. The company offers various deposit services, including checking and savings accounts, time deposits, certificates of deposit, and individual retirement accounts. Its loan portfolio comprises fixed rate and adjustable rates loans, construction loans and loans for condominiums; home equity loans; and construction permanent loans. The company also provides installment loans and credit lines, including automobile loans, boat loans, recreational vehicle loans, home improvement loans, personal loans, and personal lines of credit; credit cards; and business loans, such as small business lines of credit, term loans commercial real estate loans, letters of credit, and SBA loans. In addition, it offers electronic and mobile banking services; overdrafts; re-order checks, wire transfers, safe deposit boxes, notary services, ATM and one-time debit card overdraft opt-in, gift cards, and courier services; and investment products. The company serves individuals, businesses, schools, associations, churches, nonprofit organizations, financial institutions, and government authorities. Community Shores Bank Corporation was founded in 1998 and is based in Muskegon, Michigan.

Associated Banc Company Profile

Associated Banc-Corp, a bank holding company, provides various banking and nonbanking products to individuals and businesses primarily in Wisconsin, Illinois, and Minnesota. Its Corporate and Commercial Specialty segment offers deposit and cash management solutions, such as commercial checking and interest-bearing deposit products, cash vault and night depository services, liquidity solutions, payables and receivables solutions, and information services; and lending solutions, including commercial loans and lines of credit, commercial real estate financing, construction loans, letters of credit, leasing, asset based lending, and loan syndications. This segment also provides specialized financial services that comprise interest rate risk management, foreign exchange solutions, and commodity hedging. The company's Community, Consumer, and Business segment offers checking, credit, debit and pre-paid cards, online banking and bill pay, and money transfer services; residential mortgages, home equity loans and lines of credit, personal and installment loans, real estate financing, business loans, and business lines of credit; savings, money market deposit accounts, IRA accounts, certificates of deposit, and fixed and variable annuities, as well as full-service, discount, and online investment brokerage; investment advisory services; trust and investment management accounts; and insurance and other related products and services. This segment also engages in the administration of pension, profit-sharing and other employee benefit plans, fiduciary and corporate agency services, and institutional asset management services. Its Risk Management and Shared Services segment provides corporate risk management, credit administration, finance, treasury, operations, and technology services. As of March 16, 2018, the company operated 270 banking locations serving approximately 110 communities. Associated Banc-Corp was founded in 1861 and is headquartered in Green Bay, Wisconsin.

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