Comparing Sandy Spring Bancorp (NASDAQ:SASR) and CHESAPEAKE FINL/SH (NASDAQ:CPKF)

Sandy Spring Bancorp (NASDAQ:SASR) and CHESAPEAKE FINL/SH (OTCMKTS:CPKF) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, risk, profitability and earnings.

Profitability

This table compares Sandy Spring Bancorp and CHESAPEAKE FINL/SH’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sandy Spring Bancorp 27.41% 10.11% 1.34%
CHESAPEAKE FINL/SH 19.97% 11.38% 1.25%

Volatility and Risk

Sandy Spring Bancorp has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500. Comparatively, CHESAPEAKE FINL/SH has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500.

Valuation & Earnings

This table compares Sandy Spring Bancorp and CHESAPEAKE FINL/SH’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sandy Spring Bancorp $385.13 million 3.38 $100.86 million $2.86 12.78
CHESAPEAKE FINL/SH $51.05 million 2.35 $10.82 million $2.17 11.22

Sandy Spring Bancorp has higher revenue and earnings than CHESAPEAKE FINL/SH. CHESAPEAKE FINL/SH is trading at a lower price-to-earnings ratio than Sandy Spring Bancorp, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

72.7% of Sandy Spring Bancorp shares are held by institutional investors. Comparatively, 3.0% of CHESAPEAKE FINL/SH shares are held by institutional investors. 2.1% of Sandy Spring Bancorp shares are held by insiders. Comparatively, 39.5% of CHESAPEAKE FINL/SH shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Sandy Spring Bancorp pays an annual dividend of $1.20 per share and has a dividend yield of 3.3%. CHESAPEAKE FINL/SH pays an annual dividend of $0.50 per share and has a dividend yield of 2.1%. Sandy Spring Bancorp pays out 42.0% of its earnings in the form of a dividend. CHESAPEAKE FINL/SH pays out 23.0% 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. Sandy Spring Bancorp has increased its dividend for 9 consecutive years. Sandy Spring Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of current ratings for Sandy Spring Bancorp and CHESAPEAKE FINL/SH, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sandy Spring Bancorp 0 0 2 0 3.00
CHESAPEAKE FINL/SH 0 0 0 0 N/A

Sandy Spring Bancorp currently has a consensus price target of $37.63, indicating a potential upside of 2.94%. Given Sandy Spring Bancorp’s higher possible upside, equities analysts plainly believe Sandy Spring Bancorp is more favorable than CHESAPEAKE FINL/SH.

Summary

Sandy Spring Bancorp beats CHESAPEAKE FINL/SH on 13 of the 16 factors compared between the two stocks.

Sandy Spring Bancorp Company Profile

Sandy Spring Bancorp, Inc. operates as the bank holding company for Sandy Spring Bank that provides commercial banking services to individuals and businesses in central Maryland, Northern Virginia, and Washington D.C. The company operates in three segments: Community Banking, Insurance, and Investment Management. The Community Banking segment provides financial products and services, including various loan and deposit products to individuals and businesses. This segment accepts deposits, such as demand, money market savings, regular savings, and time deposits. Its loan products include residential real estate loans; commercial real estate loans, commercial construction loans, and other commercial loans; and consumer loans comprising home equity loans and lines, installment loans, and personal lines of credit. The Insurance segment provides general insurance agency services and annuities. The Investment Management segment provides comprehensive investment management and financial planning to individuals, families, small businesses, and associations, including cash flow analysis, investment review, tax and retirement planning, insurance analysis, and estate planning. The company also provides mortgage banking, equipment leasing, personal trust, and wealth management services. As of December 31, 2018, it operated 55 community offices and 6 financial centers. Sandy Spring Bancorp, Inc. was founded in 1868 and is headquartered in Olney, Maryland.

CHESAPEAKE FINL/SH Company Profile

Chesapeake Financial Shares, Inc. operates as the bank holding company for Chesapeake Bank that provides various banking products and services for corporate and individual clients in Virginia. It operates through Commercial, Commercial – Real Estate, Consumer – Non Real Estate, and Residential – Real Estate segments. The company offers interest and noninterest checking, savings, and money market accounts, as well as certificates of deposit. It also provides mortgage loans, single-family residential and residential construction loans, lines of credit, and consumer loans; and commercial loans, including owner-occupied commercial development, retail, builders/contractors, medical, service and professional, hospitality, nonprofits, marine industry, and agricultural and seafood loans. In addition, the company offers merchant processing services, accounts receivable financing, wealth management and trust, and cash management services. It operates through 15 branches, including 4 in Northern Neck, 3 in Middle Peninsula, 5 in Williamsburg, and 3 in Richmond. The company was founded in 1900 and is based in Kilmarnock, Virginia.

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