Carter Bankshares (NASDAQ: CARE – Get an assessment) and Arrow Financial (NASDAQ: AROW – Get an assessment) are both small cap finance companies, but which is the better investment? We’ll compare the two companies based on institutional ownership strength, risk, analyst recommendations, dividends, profitability, valuation and earnings.
This is a breakdown of recent ratings and price targets for Carter Bankshares and Arrow Financial, as provided by MarketBeat.com.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|Carter Bank Stocks||0||2||1||0||2.33|
|Financial Arrow||0||0||0||0||N / A|
Carter Bankshares currently has a consensus target price of $15.00, which suggests a potential downside of 7.46%. Given Carter Bankshares’ likely higher upside, analysts clearly believe Carter Bankshares is more favorable than Arrow Financial.
Benefits and evaluation
This table compares revenue, earnings per share and valuation of Carter Bankshares and Arrow Financial.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|Carter Bank Stocks||$162.78 million||2.45||$31.46 million||$1.43||11:34 am|
|Financial Arrow||$147.92 million||3.74||$49.86 million||$2.97||11.64|
Arrow Financial has lower revenues, but higher profits than Carter Bankshares. Carter Bankshares trades at a lower price-to-earnings ratio than Arrow Financial, indicating that it is currently the more affordable of the two stocks.
This table compares the net margins, return on equity and return on assets of Carter Bankshares and Arrow Financial.
|Net margins||Return on equity||return on assets|
|Carter Bank Stocks||22.89%||9.74%||0.89%|
Volatility and risk
Carter Bankshares has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500. By comparison, Arrow Financial has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500.
Insider and Institutional Ownership
38.2% of Carter Bankshares shares are held by institutional investors. By comparison, 43.8% of Arrow Financial’s shares are held by institutional investors. 2.0% of Carter Bankshares shares are held by insiders. By comparison, 4.2% of Arrow Financial’s shares are held by insiders. Strong institutional ownership indicates that large fund managers, endowments, and hedge funds believe a stock is poised for long-term growth.
Arrow Financial beats Carter Bankshares on 9 out of 13 factors compared between the two stocks.
About Carter Bankshares
Carter Bankshares, Inc. operates as a bank holding company for Carter Bank & Trust which provides various banking products and services. It accepts a variety of deposit products, including checking, savings, retirement, and money market accounts, as well as longer-term certificates of deposit. The company also offers commercial loans including secured and unsecured loans; consumer loans, such as secured and unsecured loans for automobile financing, home improvement, education, overdraft protection and personal investments, and residential mortgages; loans for the construction and acquisition of real estate; home equity lines of credit; and credit cards, as well as issues and holds fixed and variable rate mortgages. In addition, it provides other banking services, including safety deposit boxes, direct deposit of payroll and social security checks, online banking, bill payment, online account opening, mobile, mobile banking, debit cards, electronic statements and ATM services; title insurance and other products and services related to financial institutions; and corporate treasury and cash management services. It operates through 69 branches in Virginia and North Carolina. Carter Bankshares, Inc. was founded in 1974 and is headquartered in Martinsville, Virginia.
About Arrow Financial
Arrow Financial Corporation, a bank holding company, provides corporate and personal banking, financial products and services. The Company’s deposit products include demand deposits, interest-bearing checking accounts, savings deposits, term deposits and other term deposits. Its lending businesses include commercial lending, such as term loans, term notes and lines of credit; and commercial real estate loans to finance real estate purchases, refinances, expansions and improvements of commercial properties, as well as commercial construction and land development loans to finance projects. The Company’s lending businesses also include consumer installment loans to finance personal expenses, personal lines of credit, overdraft protection and automobile loans; and residential real estate loans, home fixed loans and home equity lines of credit for consumers to finance home renovations, debt consolidation, education and other uses. In addition, it maintains an indirect lending program; and sells residential real estate loan originations in the secondary market. In addition, the company provides retirement planning, trust and estate administration services to individuals; and pension, profit sharing and corporate benefits administration services. In addition, it provides insurance agency services including group healthcare policies and life insurance products, as well as property and casualty insurance products; and investment advisory services to its proprietary mutual funds, as well as holds a real estate investment trust. The company operates in the upstate New York region in Warren, Washington, Saratoga, Essex, Clinton, Rensselaer, Albany and Schenectady counties and surrounding areas. It has 26 bank branches; and leases 12 bank branches, as well as two residential loan origination offices. Arrow Financial Corporation was founded in 1851 and is headquartered in Glens Falls, New York.
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