Community Financial System (NYSE:CBU) and Macro Bank (NYSE:BMA) Head-To-Head Review

Community Financial System (NYSE:CBU) and Macro Bank (NYSE:BMA) are both mid-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, earnings, institutional ownership, analyst recommendations and dividends.

Dividends

Community Financial System pays an annual dividend of $1.96 per share and has a dividend yield of 3.0%. Macro Bank pays an annual dividend of $3.67 per share and has a dividend yield of 6.3%. Community Financial System pays out 44.2% of its earnings in the form of a dividend. Macro Bank pays out 80.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Community Financial System has increased its dividend for 33 consecutive years.

Risk & Volatility

Community Financial System has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, Macro Bank has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500.

Earnings and Valuation

This table compares Community Financial System and Macro Bank”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Community Financial System	$1.01 billion	3.37	$210.46 million	$4.43	14.63
Macro Bank	$4.72 billion	0.78	$231.60 million	$4.57	12.68

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

Profitability

This table compares Community Financial System and Macro Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Community Financial System	22.05%	11.78%	1.36%
Macro Bank	5.95%	8.65%	2.04%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Community Financial System and Macro Bank, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Community Financial System	0	4	1	1	2.50
Macro Bank	1	2	4	0	2.43

Community Financial System presently has a consensus price target of $69.25, indicating a potential upside of 6.83%. Macro Bank has a consensus price target of $101.25, indicating a potential upside of 74.76%. Given Macro Bank’s higher possible upside, analysts clearly believe Macro Bank is more favorable than Community Financial System.

Insider & Institutional Ownership

73.8% of Community Financial System shares are held by institutional investors. 1.1% of Community Financial System shares are held by company insiders. Comparatively, 18.3% of Macro Bank shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

About Community Financial System

Community Bank System, Inc. operates as the bank holding company for Community Bank, N.A. that provides various banking and other financial services to retail, commercial, institutional, and municipal customers. It operates through three segments: Banking, Employee Benefit Services, and All Other. The company offers various deposits products, such as interest and noninterest -bearing checking, savings, and money market deposit accounts, as well as time deposits. It also provides loans, including consumer mortgages; general purpose commercial and industrial loans, and mortgages on commercial properties; paycheck protection program loans; installment loans that are originated through selected dealerships and are secured by automobiles, marine, and other recreational vehicles; personal installment loans and check credit lines of credit for consumers; and home equity products. In addition, the company offers broker-dealer and investment advisory; cash management, investment, and treasury services; asset management services; and employee benefit services, as well as operates as a full-service insurance agency that provides personal and commercial lines of insurance, and other risk management products and services. Further, it offers contribution plan administration, employee benefit trust, collective investment fund, retirement plan administration and benefit consulting, fund administration, transfer agency, actuarial and benefit consulting, and health and welfare consulting services; and act as an investor in residential and commercial real estate activities. Additionally, the company offers wealth management, retirement planning, higher educational planning, fiduciary, risk management, trust, and personal financial planning services; and investment alternatives, including stocks, bonds, mutual funds, and insurance and advisory products, as well as master recordkeeping services. Community Bank System, Inc. was founded in 1866 and is headquartered in DeWitt, New York.

About Macro Bank

Banco Macro S.A. provides various banking products and services to retail and corporate customers in Argentina. It offers various retail banking products and services, such as savings and checking accounts, time deposits, credit and debit cards, consumer finance loans, mortgage loans, automobile loans, overdrafts, credit-related services, home and car insurance coverage, tax collection, utility payments, automated teller machines, and money transfers. The company also provides personal loans, document discounts, residential mortgages, overdrafts, pledged loans, and credit card loans to retail customers. In addition, it offers corporate banking products and services, including deposits, lending, check cashing advances and factoring, guaranteed loans, credit lines for financing foreign trade, and cash management services; and trust, payroll, and financial agency services, as well as corporate credit cards and other specialty products; and working capital facilities, credit for investment projects, and leasing and foreign trade transactions. Further, the company provides transaction services, such as cash management, collection services, payments to suppliers, payroll services, foreign exchange transactions, and foreign trade services; information services comprising Datanet and Interpymes services to corporate customers; and Internet and mobile banking services. Additionally, it offers short-term and medium-to-long-term corporate lending products. Banco Macro S.A. was incorporated in 1966 and is headquartered in Buenos Aires, Argentina.