Citigroup (NYSE:C) and Nicolet Bankshares (NASDAQ:NCBS) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, risk, profitability, dividends and earnings.

Dividends

Citigroup pays an annual dividend of $1.80 per share and has a dividend yield of 2.5%. Nicolet Bankshares does not pay a dividend. Citigroup pays out 33.8% of its earnings in the form of a dividend. Citigroup has raised its dividend for 3 consecutive years.

Risk & Volatility

Citigroup has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500. Comparatively, Nicolet Bankshares has a beta of 0.88, indicating that its stock price is 12% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Citigroup and Nicolet Bankshares, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Citigroup 1 9 14 0 2.54
Nicolet Bankshares 0 4 1 0 2.20

Citigroup presently has a consensus price target of $82.16, indicating a potential upside of 13.40%. Nicolet Bankshares has a consensus price target of $60.10, indicating a potential upside of 11.86%. Given Citigroup’s stronger consensus rating and higher probable upside, research analysts plainly believe Citigroup is more favorable than Nicolet Bankshares.

Valuation and Earnings

This table compares Citigroup and Nicolet Bankshares’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Citigroup $87.97 billion 2.12 -$6.80 billion $5.33 13.59
Nicolet Bankshares $143.89 million 3.60 $33.15 million $3.42 15.71

Nicolet Bankshares has lower revenue, but higher earnings than Citigroup. Citigroup is trading at a lower price-to-earnings ratio than Nicolet Bankshares, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Citigroup and Nicolet Bankshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Citigroup -5.45% 8.78% 0.88%
Nicolet Bankshares 24.13% 10.62% 1.30%

Institutional & Insider Ownership

74.8% of Citigroup shares are owned by institutional investors. Comparatively, 32.6% of Nicolet Bankshares shares are owned by institutional investors. 0.1% of Citigroup shares are owned by company insiders. Comparatively, 16.4% of Nicolet Bankshares shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Citigroup beats Nicolet Bankshares on 9 of the 17 factors compared between the two stocks.

Citigroup Company Profile

Citigroup Inc., a diversified financial services holding company, provides various financial products and services for consumers, corporations, governments, and institutions. The company operates through two segments, Global Consumer Banking (GCB) and Institutional Clients Group (ICG). The GCB segment offers traditional banking services to retail customers through retail banking, commercial banking, Citi-branded cards, and Citi retail services. It also provides various banking, credit card lending, and investment services through a network of local branches, offices, and electronic delivery systems. The ICG segment provides wholesale banking products and services, including fixed income and equity sales and trading, foreign exchange, prime brokerage, derivative services, equity and fixed income research, corporate lending, investment banking and advisory services, private banking, cash management, trade finance, and securities services to corporate, institutional, public sector, and high-net-worth clients. The company operates in North America, Latin America, Asia, Europe, the Middle East, and Africa. Citigroup Inc. was founded in 1812 and is based in New York, New York.

Nicolet Bankshares Company Profile

Nicolet Bankshares, Inc. operates as the holding company for Nicolet National Bank that provides commercial and retail banking services for businesses and individuals. The company accepts checking, savings, and money market accounts; various certificates of deposit; and individual retirement accounts. It also offers commercial loans, including commercial, industrial, and business loans and lines of credit; owner-occupied commercial real estate loans; agricultural (AG) production and AG real estate loans; commercial real estate investment real estate loans; construction and land development loans; residential real estate loans, such as residential first lien mortgages, junior lien mortgages, home equity loans, lines of credit, and residential construction loans; and consumer loans. In addition, the company provides cash management, international banking, personal brokerage, safe deposit boxes, and trust and fiduciary, as well as wealth management and retirement plan services. Further, it offers mortgage refinancing; online services, such as commercial, retail, and trust online banking; automated bill payment, mobile banking deposits and account access, remote deposit capture, and telephone banking services; and other services consisting of wire transfers, debit cards, credit cards, pre-paid gift cards, direct deposits, official bank checks. Additionally, the company provides investment strategy and transactional services to financial institutions. As of December 31, 2017, it operated 38 branches located in northeast and central Wisconsin, as well as in Menominee, Michigan. The company was formerly known as Green Bay Financial Corporation and changed its name to Nicolet Bankshares, Inc. in March 2002. Nicolet Bankshares, Inc. was founded in 2000 and is headquartered in Green Bay, Wisconsin.

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