Cass Information Systems (NASDAQ: CASS) is one of 30 publicly-traded companies in the “Transaction & Payment Services” industry, but how does it weigh in compared to its competitors? We will compare Cass Information Systems to related businesses based on the strength of its valuation, institutional ownership, analyst recommendations, risk, earnings, profitability and dividends.
Cass Information Systems pays an annual dividend of $0.96 per share and has a dividend yield of 1.5%. Cass Information Systems pays out 47.5% of its earnings in the form of a dividend. As a group, “Transaction & Payment Services” companies pay a dividend yield of 1.3% and pay out 49.0% of their earnings in the form of a dividend. Cass Information Systems has raised its dividend for 13 consecutive years. Cass Information Systems is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.
53.3% of Cass Information Systems shares are owned by institutional investors. Comparatively, 59.4% of shares of all “Transaction & Payment Services” companies are owned by institutional investors. 5.0% of Cass Information Systems shares are owned by company insiders. Comparatively, 19.9% of shares of all “Transaction & Payment Services” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Risk and Volatility
Cass Information Systems has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500. Comparatively, Cass Information Systems’ competitors have a beta of 1.22, meaning that their average share price is 22% more volatile than the S&P 500.
This table compares Cass Information Systems and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Cass Information Systems||18.49%||12.14%||1.73%|
|Cass Information Systems Competitors||9.29%||17.45%||4.21%|
Earnings and Valuation
This table compares Cass Information Systems and its competitors revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Cass Information Systems||$135.30 million||$25.01 million||30.73|
|Cass Information Systems Competitors||$2.41 billion||$261.25 million||454.24|
Cass Information Systems’ competitors have higher revenue and earnings than Cass Information Systems. Cass Information Systems is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
This is a breakdown of current ratings and recommmendations for Cass Information Systems and its competitors, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Cass Information Systems||0||0||0||0||N/A|
|Cass Information Systems Competitors||150||780||1127||18||2.49|
As a group, “Transaction & Payment Services” companies have a potential upside of 15.45%. Given Cass Information Systems’ competitors higher possible upside, analysts clearly believe Cass Information Systems has less favorable growth aspects than its competitors.
Cass Information Systems competitors beat Cass Information Systems on 9 of the 12 factors compared.
About Cass Information Systems
Cass Information Systems, Inc. (Cass) is a provider of payment and information processing services to manufacturing, distribution and retail enterprises across the United States with operating locations in Missouri, Ohio, Massachusetts, South Carolina and Florida. The Company provides transportation invoice rating, payment processing, auditing, accounting and transportation information. It is also a processor and payer of energy invoices, including electricity, gas, waste, and other facility related expenses. The Company operates in two segments: Information Services and Banking Services. The Information Services segment provides transportation, energy, telecommunication, and environmental invoice processing and payment services to large corporations. The Banking Services segment provides banking services primarily to privately held businesses and churches. The Company, through its bank subsidiary, Cass Commercial Bank (the Bank), provides commercial banking services.
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