Critical Contrast: Equity Bancshares (NYSE:EQBK) versus Catalyst Bancorp (NASDAQ:CLST)

Catalyst Bancorp (NASDAQ:CLST) and Equity Bancshares (NYSE:EQBK) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.

Volatility & Risk

Catalyst Bancorp has a beta of 0.11, meaning that its share price is 89% less volatile than the S&P 500. Comparatively, Equity Bancshares has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500.

Profitability

This table compares Catalyst Bancorp and Equity Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Catalyst Bancorp	12.99%	2.47%	0.71%
Equity Bancshares	8.26%	13.34%	1.46%

Insider & Institutional Ownership

33.1% of Catalyst Bancorp shares are held by institutional investors. Comparatively, 71.8% of Equity Bancshares shares are held by institutional investors. 10.1% of Catalyst Bancorp shares are held by insiders. Comparatively, 14.5% of Equity Bancshares shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Catalyst Bancorp and Equity Bancshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Catalyst Bancorp	0	1	0	0	2.00
Equity Bancshares	0	4	4	1	2.67

Equity Bancshares has a consensus price target of $55.00, indicating a potential upside of 7.13%. Given Equity Bancshares’ stronger consensus rating and higher probable upside, analysts clearly believe Equity Bancshares is more favorable than Catalyst Bancorp.

Valuation and Earnings

This table compares Catalyst Bancorp and Equity Bancshares”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Catalyst Bancorp	$23.69 million	3.08	$2.05 million	$0.55	32.89
Equity Bancshares	$367.98 million	2.87	$22.73 million	$1.67	30.74

Equity Bancshares has higher revenue and earnings than Catalyst Bancorp. Equity Bancshares is trading at a lower price-to-earnings ratio than Catalyst Bancorp, indicating that it is currently the more affordable of the two stocks.

Summary

Equity Bancshares beats Catalyst Bancorp on 12 of the 15 factors compared between the two stocks.

About Catalyst Bancorp

Catalyst Bancorp, Inc. operates as a holding company for Catalyst Bank that provides various banking services to individuals and businesses in Louisiana. The company accepts various deposit products, including savings accounts, demand and NOW accounts, money market accounts, and certificates of deposit. It also offers single family residential first mortgage loans, commercial real estate mortgage loans, multi-family residential mortgage loans, commercial and industrial loans, construction and land loans, consumer loans, and other loans. In addition, the company invests in various types of securities comprising mortgage-backed securities, the U.S. treasury obligations, securities of various federal agencies and of state and municipal governments, certificates of deposit at federally insured banks and savings institutions, and federal funds. Catalyst Bancorp, Inc. was founded in 1922 and is headquartered in Opelousas, Louisiana.

About Equity Bancshares

Equity Bancshares, Inc. operates as the bank holding company for Equity Bank that provides a range of banking, mortgage banking, and financial services to individual and corporate customers. The company accepts various demand, savings, money market, and time deposits. Its loan products include commercial and industrial, commercial real estate-backed, commercial lines of credit, working capital, term, equipment financing, acquisition, expansion and development, borrowing base, real estate construction, homebuilder, agricultural, government guaranteed, and other loan products to national and regional companies, restaurant franchisees, hoteliers, real estate developers, manufacturing and industrial companies, agribusiness companies, and other businesses. The company’s loan products also comprise various consumer loans to individuals and professionals, including residential real estate loans, home equity loans and lines of credit, installment loans, unsecured and secured personal lines of credit, overdraft protection, and letters of credit. It also provides debit cards; online banking solutions, such as access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; mobile banking solutions comprising remote check deposits with mobile bill pay; ATMs; and treasury management, wire transfer, automated clearing house, and stop payment services. In addition, the company offers cash management deposit products, such as lockbox, remote deposit capture, positive pay, reverse positive pay, account reconciliation services, zero balance accounts, and sweep accounts, as well as banking services through telephone, mail, and personal appointments. As of December 31, 2021, it operated a network of 69 branches in Arkansas, Kansas, Missouri, and Oklahoma. The company was founded in 2002 and is headquartered in Wichita, Kansas.