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

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

Insider & Institutional Ownership

96.2% of Bancorp shares are held by institutional investors. Comparatively, 22.5% of Citizens Financial Services shares are held by institutional investors. 6.0% of Bancorp shares are held by company insiders. Comparatively, 5.5% of Citizens Financial Services shares are held by company 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 Recommendations

This is a summary of current recommendations and price targets for Bancorp and Citizens Financial Services, as reported by MarketBeat.com.

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

Bancorp currently has a consensus price target of $71.17, indicating a potential upside of 41.48%. Given Bancorp’s higher probable upside, equities analysts clearly believe Bancorp is more favorable than Citizens Financial Services.

Profitability

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

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bancorp	$879.70 million	2.33	$228.21 million	$5.32	9.45
Citizens Financial Services	$173.51 million	2.30	$36.57 million	$8.55	9.72

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

Risk and Volatility

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

Summary

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

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.

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.