Comparing CIT Group (CIT) and Camden National (CAC)

CIT Group (NYSE:CIT) and Camden National (NASDAQ:CAC) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, profitability, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for CIT Group and Camden National, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CIT Group 0 8 4 0 2.33
Camden National 0 1 1 0 2.50

CIT Group presently has a consensus price target of $54.47, indicating a potential upside of 5.68%. Camden National has a consensus price target of $49.75, indicating a potential upside of 15.46%. Given Camden National’s stronger consensus rating and higher possible upside, analysts clearly believe Camden National is more favorable than CIT Group.

Valuation and Earnings

This table compares CIT Group and Camden National’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CIT Group $3.21 billion 1.82 $468.20 million $3.07 16.79
Camden National $174.70 million 3.84 $28.47 million $2.73 15.78

CIT Group has higher revenue and earnings than Camden National. Camden National is trading at a lower price-to-earnings ratio than CIT Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares CIT Group and Camden National’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CIT Group 10.81% 7.38% 1.00%
Camden National 18.39% 11.64% 1.16%

Insider and Institutional Ownership

63.3% of Camden National shares are owned by institutional investors. 0.3% of CIT Group shares are owned by company insiders. Comparatively, 2.0% of Camden National shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

CIT Group pays an annual dividend of $1.00 per share and has a dividend yield of 1.9%. Camden National pays an annual dividend of $1.20 per share and has a dividend yield of 2.8%. CIT Group pays out 32.6% of its earnings in the form of a dividend. Camden National pays out 44.0% 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. Camden National has increased its dividend for 5 consecutive years. Camden National is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

CIT Group has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500. Comparatively, Camden National has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500.

Summary

Camden National beats CIT Group on 10 of the 17 factors compared between the two stocks.

CIT Group Company Profile

CIT Group Inc. operates as the bank holding company for CIT Bank, National Association that provides banking and related services to commercial and individual customers. The company operates through three segments: Commercial Banking, Consumer Banking, and Non-Strategic Portfolios (NSP). The Commercial Banking segment offers lending, leasing, and other financial and advisory services primarily to small and middle-market companies; factoring, receivables management products, and secured supply chain financing; and equipment leasing and secured financing to railroads and non-rail companies. The Consumer Banking segment provides mortgage loans and deposits. It accepts deposits, including checking and savings accounts, money market accounts, and certificates of deposit; and offers residential mortgage and small business administration loans, and reverse mortgages, as well as fiduciary services. The NSP segment provides equipment financing, secured lending, and leasing and advisory services to small and middle-market businesses. The company also offers online banking services. It operates through a network of 70 branches located in southern California. CIT Group Inc. was founded in 1908 and is headquartered in Livingston, New Jersey.

Camden National Company Profile

Camden National Corporation operates as the holding company for Camden National Bank that provides commercial and consumer banking products and services to consumer, institutional, municipal, non-profit, and commercial customers. It offers various deposit products, including demand, checking, saving, and money market accounts; and time deposits. The company also originates single family and multi-family residential loans, commercial real estate loans, municipal loans, and various consumer loans, as well as loans for the construction of residential homes, multi-family properties, and commercial real estate properties; and commercial lending to the small business medical field, including dentists, optometrists, and veterinarians. As of January 30, 2018, it operated a network of 60 banking centers, 76 ATMs, and lending offices in New Hampshire and Massachusetts. In addition, the company provides brokerage and insurance services through its financial offerings consisting of college, retirement, estate planning, mutual funds, strategic asset management accounts, and variable and fixed annuities. Further, Camden National Corporation offers a range of investment management, financial planning, fiduciary, asset management, and wealth management services, as well as serves as trustee. The company was founded in 1875 and is headquartered in Camden, Maine.

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