Direct Investigation: Republic Bancorp (NASDAQ: RBCAA) vs. Community Trust Bancorp (NASDAQ: CTBI)
Republic Bancorp (NASDAQ:RBCAA – Get Rating) and Community Trust Bancorp (NASDAQ:CTBI – Get Rating) are both small cap finance companies, but which is the best investment? We’ll compare the two companies based on valuation strength, dividends, earnings, risk, institutional ownership, profitability, and analyst recommendations.
Dividends
Republic Bancorp pays an annual dividend of $1.36 per share and has a dividend yield of 2.9%. Community Trust Bancorp pays an annual dividend of $1.60 per share and has a dividend yield of 3.8%. Republic Bancorp pays 31.0% of its earnings as a dividend. Community Trust Bancorp pays 33.9% 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. Republic Bancorp has increased its dividend for 21 consecutive years and Community Trust Bancorp has increased its dividend for 42 consecutive years. Community Trust Bancorp is clearly the best dividend stock, given its higher yield and longer track record of dividend growth.
Insider and Institutional Ownership
58.0% of Community Trust Bancorp shares are held by institutional investors. 54.9% of Republic Bancorp shares are held by insiders of the company. By comparison, 4.1% of Community Trust Bancorp’s shares are held by insiders of the company. Strong institutional ownership indicates that hedge funds, large fund managers, and endowments believe a stock is ripe for long-term growth.
Profitability
This table compares the net margins, return on equity and return on assets of Republic Bancorp and Community Trust Bancorp.
| Net margins | Return on equity | return on assets | |
| Bancorp Republic | 29.43% | 9.49% | 1.29% |
| Community Trust Bank | 35.41% | 12.16% | 1.55% |
Benefits and evaluation
This table compares the revenue, earnings per share and valuation of Republic Bancorp and Community Trust Bancorp.
| Gross revenue | Price/sales ratio | Net revenue | Earnings per share | Price/earnings ratio | |
| Bancorp Republic | $313.12 million | 2.98 | $86.79 million | $4.39 | 10.61 |
| Community Trust Bank | $238.63 million | 3.13 | $87.94 million | $4.72 | 8.84 |
Community Trust Bancorp has lower revenue but higher earnings than Republic Bancorp. Community Trust Bancorp trades at a lower price-to-earnings ratio than Republic Bancorp, indicating that it is currently the more affordable of the two stocks.
Analyst Notes
This is a summary of recent ratings and target prices for Republic Bancorp and Community Trust Bancorp, as provided by MarketBeat.
| Sales Ratings | Hold odds | Buy reviews | Strong buy odds | Rating | |
| Bancorp Republic | 0 | 1 | 1 | 0 | 2.50 |
| Community Trust Bank | 0 | 0 | 0 | 0 | N / A |
Republic Bancorp currently has a consensus price target of $54.00, indicating a potential upside of 15.93%. Given Republic Bancorp’s possible higher upside, research analysts clearly believe that Republic Bancorp is more favorable than Community Trust Bancorp.
Volatility and risk
Republic Bancorp has a beta of 0.63, indicating that its stock price is 37% less volatile than the S&P 500. In comparison, Community Trust Bancorp has a beta of 0.76, indicating that its stock price stock is 24% less volatile than the S&P 500.
Summary
Community Trust Bancorp beats Republic Bancorp on 10 of the 16 factors compared between the two stocks.
About Republic Bancorp (Get a rating)
Republic Bancorp, Inc., a financial holding company, provides various banking products and services in the United States. It operates in five segments: Traditional Bank, Warehouse, Mortgage Bank, Tax Refund Solutions and Republic Credit Solutions. The company accepts current accounts, money market accounts, savings accounts, individual retirement accounts, term certificates, brokerage certificates and other certificates of deposit. Its lending products include residential real estate, commercial real estate, construction and land development, home improvement and home equity, secured and unsecured personal loans and aviation loans. The company also offers credit cards; title insurance and other financial products and services; and memory banking, private banking, safe deposit processing, remote deposit capture, online business banking, account reconciliation, automated clearing house processing, and Internet banking and mobile. In addition, it provides short-term and revolving credit facilities to mortgage bankers; tax refund solutions, which facilitate the receipt and payment of federal and state tax refund proceeds through third-party tax preparers and tax preparation software providers; and general purpose reloadable prepaid cards through third party service providers. In addition, the Company offers consumer credit products; and P&C insurance products. As of January 28, 2022, it operated 42 full-service banking centers. Republic Bancorp, Inc. was incorporated in 1974 and is headquartered in Louisville, Kentucky.
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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