Avidbank (NASDAQ:AVBH – Get Free Report) and Citizens (NASDAQ:CIZN – Get Free Report) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, analyst recommendations, earnings, valuation, dividends and institutional ownership.
Profitability
This table compares Avidbank and Citizens’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Avidbank | -8.69% | 10.85% | 1.21% |
| Citizens | 7.00% | 11.28% | 0.37% |
Valuation and Earnings
This table compares Avidbank and Citizens”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Avidbank | $46.28 million | 7.52 | -$19.55 million | ($1.92) | -16.49 |
| Citizens | $40.95 million | 1.48 | $5.49 million | $1.68 | 6.35 |
Citizens has lower revenue, but higher earnings than Avidbank. Avidbank is trading at a lower price-to-earnings ratio than Citizens, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Avidbank has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500. Comparatively, Citizens has a beta of 0.04, suggesting that its share price is 96% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and target prices for Avidbank and Citizens, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Avidbank | 0 | 1 | 3 | 0 | 2.75 |
| Citizens | 0 | 0 | 3 | 0 | 3.00 |
Avidbank currently has a consensus target price of $35.33, suggesting a potential upside of 11.57%. Citizens has a consensus target price of $16.83, suggesting a potential upside of 57.76%. Given Citizens’ stronger consensus rating and higher possible upside, analysts plainly believe Citizens is more favorable than Avidbank.
Institutional & Insider Ownership
15.9% of Avidbank shares are held by institutional investors. Comparatively, 9.7% of Citizens shares are held by institutional investors. 9.6% of Avidbank shares are held by company insiders. Comparatively, 8.9% of Citizens shares are held 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.
Summary
Citizens beats Avidbank on 7 of the 13 factors compared between the two stocks.
About Avidbank
Avidbank Holdings, Inc. operates as a bank holding company for Avidbank that provides financial products and services to small and middle-market businesses, professionals, and individuals in the Santa Clara, San Mateo, and San Francisco counties. It offers business and personal deposit products, such as checking, money market, and savings accounts; and certificates of deposit. The company also provides personal lending products include secured and unsecured lines of credit, home equity lines of credit, remodel and new home construction loans, and term loans; corporate banking comprises working capital lines of credit, equipment loans, acquisition financing, shareholder buyouts, ESOP loans, and owner-occupied real estate loans; and commercial real estate lending, such as permanent loans and bridge financing products. In addition, it offers construction lending products, including land acquisition loans, pre-development loans, construction spec SFD, owner-occupied SFD, condominiums, subdivision, unsecured business lines, real estate bridge loans, and RLOC Â real estate secured loans. Further, the company provides various financing solutions, such as structured finance, venture lending, asset-based lending, and sponsor finance. Additionally, it offers various services, such as automated clearing house payments and collections, bill pay, wire transfer, lockbox, merchant, remote deposit capture, ATM/debit cards, credit cards, business courier, cash management, and notary services, as well as online and mobile banking. The company was formerly known as Peninsula Bank Holding Co. and changed its name to Avidbank Holdings, Inc. in August 2011. Avidbank Holdings, Inc. was founded in 2003 and is headquartered in San Jose, California.
About Citizens
Citizens Holding Company operates as the bank holding company for The Citizens Bank of Philadelphia that provides various commercial and personal banking products and services. It offers demand deposits; and savings and time deposit accounts. The company also provides secured and unsecured loans; mortgage loans; single and multi-family housing, farm, residential and commercial construction, and commercial real estate loans; commercial, industrial, and agricultural production loans; and consumer loans, as well as issues letters of credit. In addition, it offers personal and corporate trust services; credit life and title insurance; and online and mobile banking services. The company was founded in 1908 and is headquartered in Philadelphia, Mississippi.
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