Financial Review of Community Trust Bancorp (NASDAQ:CTBI) vs Univest Financial (NASDAQ:UVSP)


Univest Financial (NASDAQ:UVSP – Get Rating) and Community Trust Bancorp (NASDAQ:CTBI – Get Rating) are both small cap financial companies, but which stock is superior? We’ll compare the two companies based on earnings strength, institutional ownership, risk, valuation, dividends, profitability, and analyst recommendations.

Dividends

Univest Financial pays an annual dividend of $0.84 per share and has a dividend yield of 3.3%. Community Trust Bancorp pays an annual dividend of $1.60 per share and has a dividend yield of 3.7%. Univest Financial pays 34.6% of its profits as a dividend. Community Trust Bancorp pays 35.4% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Univest Financial has increased its dividend for 1 consecutive year and Community Trust Bancorp has increased its dividend for 43 consecutive years. Community Trust Bancorp is clearly the best dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares the net margins, return on equity and return on assets of Univest Financial and Community Trust Bancorp.

Net margins Return on equity return on assets
Univest Financial 24.51% 9.36% 1.03%
Community Trust Bank 33.81% 11.80% 1.48%

Institutional and Insider Ownership

72.2% of Univest Financial shares are held by institutional investors. By comparison, 58.0% of Community Trust Bancorp’s shares are held by institutional investors. 2.2% of Univest Financial shares are held by company insiders. By comparison, 4.1% of Community Trust Bancorp’s shares are held by insiders of the company. Strong institutional ownership indicates that hedge funds, endowments, and large fund managers believe a company will outperform the market over the long term.

Benefits and evaluation

This table compares the gross revenue, earnings per share and valuation of Univest Financial and Community Trust Bancorp.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Univest Financial $292.95 million 2.56 $91.80 million $2.43 10:43 am
Community Trust Bank $238.63 million 3.22 $87.94 million $4.52 9.50

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

Analyst Notes

This is a breakdown of recent recommendations and price targets for Univest Financial and Community Trust Bancorp, as provided by MarketBeat.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Univest Financial 0 0 1 0 3.00
Community Trust Bank 0 0 0 0 N / A

Univest Financial currently has a consensus target price of $29.00, indicating a potential upside of 14.40%. Community Trust Bancorp has a consensus target price of $47.00, indicating a potential upside of 9.40%. Given Univest Financial’s possible higher upside, analysts clearly believe that Univest Financial is more favorable than Community Trust Bancorp.

Risk and Volatility

Univest Financial has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500. In comparison, Community Trust Bancorp has a beta of 0.74, indicating that its stock price stock is 26% less volatile than the S&P 500.

About Univest Financial

(Get a rating)

Univest Financial Corporation operates as a bank holding company for Univest Bank and Trust Co. which provides banking products and services primarily in Pennsylvania. It operates through three segments: Banking, Wealth Management and Insurance. The Banking segment provides a range of banking services, such as taking deposits, making and servicing loans, mortgage banking services, other general banking services and equipment rental financing services for individuals , businesses, municipalities and non-profit organizations. The Wealth Management segment provides investment advisory, financial planning, trust and brokerage services for families and individuals, municipal pension plans, retirement plans, trusts and guardianships. The Insurance segment provides commercial property and casualty insurance, employee benefit solutions, personal insurance lines and human resource consulting services. It serves customers primarily in Bucks, Berks, Chester, Cumberland, Dauphin, Delaware, Lancaster, Lehigh, Montgomery, Northampton, Philadelphia, and York counties in Pennsylvania; and Atlantic, Burlington and Cape May counties in New Jersey through 37 banking offices. The company was previously known as Univest Corporation of Pennsylvania and changed its name to Univest Financial Corporation in January 2019. Univest Financial Corporation was founded in 1876 and is headquartered in Souderton, Pennsylvania.

About Community Trust Bancorp

(Get a rating)

Community Trust Bancorp, Inc. operates as a bank holding company for Community Trust Bank, Inc. which provides commercial and personal banking services to small and medium communities. The company accepts term and demand deposits, checking accounts, savings accounts and savings certificates, individual retirement accounts and Keogh plans and money market accounts. Its lending products include commercial, construction, mortgage and personal loans; leasing, lines of credit, revolving lines of credit and term loans, and other specialty lending, including asset-based financing; residential and commercial real estate loans; and consumer loans. The company also offers cash management, safe deposit box rental and funds transfer services; issues letters of credit; and acts as trustee of personal trusts, executor, trustee of employee benefit trusts and paying agent for bond and stock issues, as well as investment agent and depositor of securities movables. In addition, it provides securities brokerage, trust and wealth management services; debit cards; annuity and life insurance products; and repurchase agreements, as well as mobile, internet banking and e-statement services. The company operates 79 banking locations in eastern, northeast, central, south-central Kentucky, southern West Virginia and northeast Tennessee; 4 trust offices across Kentucky; and 1 fiduciary office in northeast Tennessee. Community Trust Bancorp, Inc. was founded in 1903 and is headquartered in Pikeville, Kentucky.



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