PrivateBancorp (NASDAQ: PVTB) and Community Bankers Trust (NASDAQ:ESXB) are both financials companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, profitability, dividends, earnings, institutional ownership and risk.

Profitability

This table compares PrivateBancorp and Community Bankers Trust’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PrivateBancorp 29.22% 11.73% 1.15%
Community Bankers Trust 23.37% 9.39% 0.89%

Analyst Recommendations

This is a breakdown of current ratings for PrivateBancorp and Community Bankers Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PrivateBancorp 0 3 0 0 2.00
Community Bankers Trust 0 3 1 0 2.25

PrivateBancorp presently has a consensus target price of $57.00, indicating a potential downside of 6.51%. Community Bankers Trust has a consensus target price of $9.33, indicating a potential upside of 4.87%. Given Community Bankers Trust’s stronger consensus rating and higher probable upside, analysts plainly believe Community Bankers Trust is more favorable than PrivateBancorp.

Risk and Volatility

PrivateBancorp has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500. Comparatively, Community Bankers Trust has a beta of 0.23, suggesting that its stock price is 77% less volatile than the S&P 500.

Institutional & Insider Ownership

88.5% of PrivateBancorp shares are owned by institutional investors. 3.9% of PrivateBancorp shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares PrivateBancorp and Community Bankers Trust’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PrivateBancorp N/A N/A N/A $2.65 23.01
Community Bankers Trust N/A N/A N/A $0.49 18.16

Community Bankers Trust is trading at a lower price-to-earnings ratio than PrivateBancorp, indicating that it is currently the more affordable of the two stocks.

Dividends

PrivateBancorp pays an annual dividend of $0.04 per share and has a dividend yield of 0.1%. Community Bankers Trust does not pay a dividend. PrivateBancorp pays out 1.5% of its earnings in the form of a dividend.

Summary

PrivateBancorp beats Community Bankers Trust on 9 of the 13 factors compared between the two stocks.

About PrivateBancorp

PrivateBancorp, Inc. is a bank holding company for The PrivateBank and Trust Company (the Bank). Through the Bank, the Company provides customized business and personal financial services to middle market companies, as well as business owners, executives, entrepreneurs and families in the markets and communities it serves. The Company operates through three operating segments: Banking, Asset Management and Holding Company activities. The Banking segment consists of commercial and personal banking services. The Company’s Asset Management segment includes certain activities of its PrivateWealth group, including investment management, personal trust and estate administration, custodial and escrow services, investment management services for 401(k) plans and brokerage services. The activities of the Holding Company Activities segment include the direct and indirect ownership of its banking subsidiary, the issuance of debt and intersegment eliminations.

About Community Bankers Trust

Community Bankers Trust Corporation is the holding company for Essex Bank (the Bank). The Bank is engaged in a general commercial banking business and provides a range of financial services to individuals and small businesses, including individual and commercial demand and time deposit accounts, commercial and industrial loans, consumer and small business loans, real estate and mortgage loans, investment services and safe deposit box facilities. Essex Services, Inc., a subsidiary of the Bank, and its financial consultants offer a range of investment products and alternatives. It operates in over three business lines: retail and small business banking, commercial and industrial banking and real estate lending. Its investment securities include the United States treasury issue and other United States Government agencies; the United States Government sponsored agencies, and state, county and municipal securities. Its lending and investing activities are funded through its deposits.

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