Catalyst Bancorp (NASDAQ:CLST – Get Free Report) and Investar (NASDAQ:ISTR – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.
Risk & Volatility
Catalyst Bancorp has a beta of 0.19, suggesting that its stock price is 81% less volatile than the S&P 500. Comparatively, Investar has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.
Insider & Institutional Ownership
33.1% of Catalyst Bancorp shares are held by institutional investors. Comparatively, 50.2% of Investar shares are held by institutional investors. 8.2% of Catalyst Bancorp shares are held by insiders. Comparatively, 8.8% of Investar shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Catalyst Bancorp | 0 | 1 | 0 | 0 | 2.00 |
| Investar | 0 | 1 | 1 | 1 | 3.00 |
Investar has a consensus target price of $29.00, indicating a potential upside of 22.00%. Given Investar’s stronger consensus rating and higher probable upside, analysts clearly believe Investar is more favorable than Catalyst Bancorp.
Valuation and Earnings
This table compares Catalyst Bancorp and Investar”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Catalyst Bancorp | $10.02 million | 6.02 | -$3.09 million | $0.59 | 24.68 |
| Investar | $85.55 million | 2.73 | $20.25 million | $2.24 | 10.61 |
Investar has higher revenue and earnings than Catalyst Bancorp. Investar is trading at a lower price-to-earnings ratio than Catalyst Bancorp, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Catalyst Bancorp and Investar’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Catalyst Bancorp | 14.42% | 2.76% | 0.81% |
| Investar | 14.87% | 9.53% | 0.87% |
Summary
Investar beats Catalyst Bancorp on 13 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 Investar
Investar Holding Corporation operates as the bank holding company for Investar Bank that provides a range of commercial banking products to individuals, professionals, and small to medium-sized businesses in south Louisiana, southeast Texas, and Alabama in the United States. The company offers various deposit products and services, such as savings, checking, money market, and individual retirement accounts, as well as various certificates of deposit; debit and credit cards; internet, mobile, and video banking services; and reciprocal deposit products. It also provides commercial real estate loans; commercial and industrial loans, including working capital lines of credit and equipment loans; loans for the construction of commercial projects, and single family residential and multifamily properties; one-to-four family residential real estate loans, such as second mortgage loans; and consumer loans, such as secured and unsecured installment and term loans, home equity loans and lines of credit, and auto loans, as well as loans for personal, family, and household purposes. In addition, the company offers treasury management products, including remote deposit capture, lockbox payment processing, virtual vault, positive pay, ACH origination, wire transfer, investment sweep accounts, and business internet banking services. Further, it provides various other banking services, such as cashiers' checks, direct deposit of payroll and social security checks, night depository, bank-by-mail, automated teller machines, electronic statements, interactive teller machines, online account opening, and mobile wallet payment services. Investar Holding Corporation was founded in 2006 and is headquartered in Baton Rouge, Louisiana.
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