Analyzing Midland States Bancorp (NASDAQ:MSBI) and Community Trust Bancorp (NASDAQ:CTBI)

Community Trust Bancorp (NASDAQ:CTBI) and Midland States Bancorp (NASDAQ:MSBI) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, profitability, earnings, dividends, valuation, risk and analyst recommendations.

Dividends

Community Trust Bancorp pays an annual dividend of $1.44 per share and has a dividend yield of 3.5%. Midland States Bancorp pays an annual dividend of $0.97 per share and has a dividend yield of 3.7%. Community Trust Bancorp pays out 43.0% of its earnings in the form of a dividend. Midland States Bancorp pays out 47.5% 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. Community Trust Bancorp has raised its dividend for 38 consecutive years and Midland States Bancorp has raised its dividend for 2 consecutive years.

Valuation & Earnings

This table compares Community Trust Bancorp and Midland States Bancorp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Community Trust Bancorp $223.40 million 3.24 $59.23 million $3.35 12.17
Midland States Bancorp $295.36 million 2.11 $39.42 million $2.04 12.70

Community Trust Bancorp has higher earnings, but lower revenue than Midland States Bancorp. Community Trust Bancorp is trading at a lower price-to-earnings ratio than Midland States Bancorp, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

57.9% of Community Trust Bancorp shares are held by institutional investors. Comparatively, 47.6% of Midland States Bancorp shares are held by institutional investors. 4.9% of Community Trust Bancorp shares are held by company insiders. Comparatively, 12.7% of Midland States Bancorp shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Community Trust Bancorp and Midland States Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Community Trust Bancorp 25.64% 10.95% 1.45%
Midland States Bancorp 16.69% 10.06% 1.07%

Analyst Ratings

This is a summary of recent ratings and price targets for Community Trust Bancorp and Midland States Bancorp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Community Trust Bancorp 0 0 0 0 N/A
Midland States Bancorp 0 0 1 0 3.00

Midland States Bancorp has a consensus target price of $27.00, suggesting a potential upside of 4.25%. Given Midland States Bancorp’s higher possible upside, analysts clearly believe Midland States Bancorp is more favorable than Community Trust Bancorp.

Volatility & Risk

Community Trust Bancorp has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500. Comparatively, Midland States Bancorp has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500.

Summary

Community Trust Bancorp beats Midland States Bancorp on 9 of the 16 factors compared between the two stocks.

Community Trust Bancorp Company Profile

Community Trust Bancorp, Inc. operates as the bank holding company for Community Trust Bank, Inc. that provides commercial and personal banking services to small and mid-sized communities. The company accepts time and demand deposits, Keogh plans, and savings certificates, as well as checking and savings, regular, individual retirement, NOW, and money market accounts. It also offers loan products, such as commercial and residential real estate loans; commercial, construction and development, mortgage, and personal loans, as well as consumer, and secured and unsecured loans; and lease-financing, lines of credit, revolving lines of credit, and term loans, as well as other specialized loans, including asset-based financing. In addition, the company provides cash management, safe deposit boxes rental, and funds transfer services; issues letters of credit; and acts as a trustee of personal trusts, executor of estates, trustee for employee benefit trusts, and paying agent for bond and stock issues, as well as an investment agent and depositor for securities. Further, it offers full service securities brokerage, and trust and wealth management services; debit cards; annuity and life insurance products; and repurchase agreements, as well as mobile, telephone, and Internet banking services. As of December 31, 2018, the company operated 79 banking locations in eastern, northeastern, central, and south central Kentucky; 6 banking locations in southern West Virginia; 4 banking locations in northeastern Tennessee; 4 trust offices in Kentucky; and 1 trust office in Tennessee. Community Trust Bancorp, Inc. was founded in 1903 and is headquartered in Pikeville, Kentucky.

Midland States Bancorp Company Profile

Midland States Bancorp, Inc. operates as a financial holding company for Midland States Bank that provides various banking products and services to individuals, businesses, municipalities, and other entities. It operates through Banking, Commercial FHA Origination and Servicing, Wealth Management, and Other segments. The company accepts various deposits, such as checking, savings, money market, and sweep accounts, as well as certificates of deposit, noninterest-bearing and interest-bearing demand deposits, and time deposits. Its loan portfolio include commercial lending products consisting of owner occupied commercial real estate, commercial real estate investment, real estate construction, and multifamily loans, as well as loans to purchase farmland and finance agricultural production; business term loans, equipment financing, and lines of credit; consumer installment loans for purchase cars, boats, other recreational vehicles, and appliances, as well as other home improvement projects; and residential first and second mortgage loans, and home equity lines of credit. The company also originates residential mortgage loans; and commercial mortgage loans for multifamily and healthcare facilities. In addition, it provides trust and wealth management products and services, including financial and estate planning, trustee and custodial services, investment management, tax and insurance planning, business planning, corporate retirement plan consulting and administration, and retail brokerage services. Further, the company offers commercial equipment leasing and merchant services. As of December 31, 2018, it operated 69 banking offices in 48 communities within its market areas, such as Illinois and the St. Louis metropolitan areas. The company was founded in 1881 and is headquartered in Effingham, Illinois.

Receive News & Ratings for Community Trust Bancorp Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Community Trust Bancorp and related companies with MarketBeat.com's FREE daily email newsletter.