Financial Comparison: Bancorp (NASDAQ:TBBK) & Citizens Financial Services (NASDAQ:CZFS)

Citizens Financial Services (NASDAQ:CZFS) and Bancorp (NASDAQ:TBBK) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, risk, valuation and profitability.

Analyst Ratings

This is a summary of current recommendations for Citizens Financial Services and Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Citizens Financial Services	0	1	1	1	3.00
Bancorp	0	2	4	1	2.86

Bancorp has a consensus target price of $69.33, suggesting a potential upside of 38.07%. Given Bancorp’s higher possible upside, analysts clearly believe Bancorp is more favorable than Citizens Financial Services.

Profitability

This table compares Citizens Financial Services and Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Citizens Financial Services	23.31%	12.06%	1.33%
Bancorp	27.72%	32.32%	2.50%

Earnings and Valuation

This table compares Citizens Financial Services and Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Citizens Financial Services	$118.11 million	3.27	$36.57 million	$8.55	9.40
Bancorp	$879.70 million	2.33	$228.21 million	$5.32	9.44

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

Insider & Institutional Ownership

22.5% of Citizens Financial Services shares are owned by institutional investors. Comparatively, 96.2% of Bancorp shares are owned by institutional investors. 5.5% of Citizens Financial Services shares are owned by company insiders. Comparatively, 6.0% of Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk and Volatility

Citizens Financial Services has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500. Comparatively, Bancorp has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500.

Summary

Bancorp beats Citizens Financial Services on 11 of the 14 factors compared between the two stocks.

About Citizens Financial Services

Citizens Financial Services, Inc., a bank holding company, provides various banking products and services for individual, business, governmental, and institutional customers. The company accepts various deposit products, such as checking, savings, and time deposit accounts. Its loan products include residential, commercial, and agricultural real estate loans; commercial and industrial loans; state and political subdivision loans; and consumer loans, as well as various other specialized financial services. The company also provides professional trust administration, investment management services, estate planning and administration, custody of securities, and individual retirement accounts. In addition, it offers brokerage and financial planning services, as well as assistance in various oil and gas leasing matters; and provides mutual funds, annuities, and health and life insurance products. Citizens Financial Services, Inc. was incorporated in 1984 and is headquartered in Mansfield, Pennsylvania.

About Bancorp

The Bancorp, Inc. operates as the bank holding company for The Bancorp Bank, National Association that provides banking products and services in the United States. It offers a range of deposit products and services, including checking, savings, time, money market, and commercial accounts; overdrafts; and certificates of deposit. The company also provides securities-backed lines of credit and insurance policy cash value-backed lines of credit; investor advisor financing; lease financing for commercial and government vehicle fleets, including trucks and other special purpose vehicles; commercial real estate bridge loans; and small business administration loans. In addition, it offers bill and other payment services; debit and prepaid card issuing services; card and bill payment, and automated clearing house processing services; and internet banking services. The company was incorporated in 1999 and is headquartered in Wilmington, Delaware.