Head-To-Head Review: Carter Bankshares (CARE) versus Its Competitors

Carter Bankshares (NASDAQ:CARE) is one of 920 public companies in the “Banks” industry, but how does it weigh in compared to its competitors? We will compare Carter Bankshares to similar companies based on the strength of its dividends, valuation, earnings, analyst recommendations, risk, profitability and institutional ownership.

Profitability

This table compares Carter Bankshares and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Carter Bankshares	36.79%	7.46%	0.73%
Carter Bankshares Competitors	15.24%	9.38%	0.92%

Earnings & Valuation

This table compares Carter Bankshares and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Carter Bankshares	$254.63 million	$31.00 million	5.16
Carter Bankshares Competitors	$251.02 billion	$2.41 billion	19.19

Carter Bankshares’ competitors have higher revenue and earnings than Carter Bankshares. Carter Bankshares 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.

Insider & Institutional Ownership

41.5% of Carter Bankshares shares are owned by institutional investors. Comparatively, 47.8% of shares of all “Banks” companies are owned by institutional investors. 2.4% of Carter Bankshares shares are owned by company insiders. Comparatively, 9.8% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for Carter Bankshares and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carter Bankshares	0	4	1	0	2.20
Carter Bankshares Competitors	7448	30102	27644	1443	2.35

Carter Bankshares presently has a consensus target price of $30.75, indicating a potential upside of 2.52%. As a group, “Banks” companies have a potential upside of 15.62%. Given Carter Bankshares’ competitors stronger consensus rating and higher probable upside, analysts clearly believe Carter Bankshares has less favorable growth aspects than its competitors.

Risk and Volatility

Carter Bankshares has a beta of 0.59, suggesting that its stock price is 41% less volatile than the S&P 500. Comparatively, Carter Bankshares’ competitors have a beta of 0.61, suggesting that their average stock price is 39% less volatile than the S&P 500.

Dividends

Carter Bankshares pays an annual dividend of $0.40 per share and has a dividend yield of 1.3%. Carter Bankshares pays out 6.9% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.3% and pay out 29.0% of their earnings in the form of a dividend.

Summary

Carter Bankshares competitors beat Carter Bankshares on 13 of the 15 factors compared.

Carter Bankshares Company Profile

Carter Bankshares, Inc. operates as the bank holding company for Carter Bank & Trust that provides various banking products and services in the United States. It accepts various deposit products, including checking, savings, retirement, and money market accounts, as well as certificates of deposits. The company also offers commercial loans comprising secured and unsecured loans; consumer loans, such as secured and unsecured loans for financing automobiles, home improvements, education, overdraft protection, and personal investments, as well as residential mortgages; real estate construction, acquisition, commercial, and industrial loans; home equity lines of credit; and credit cards, as well as originates and holds fixed and variable rate mortgage loans. In addition, it provides other banking services that include safe deposit boxes, direct deposit of payroll, and social security checks; online banking products, including online and mobile banking, online account opening, bill pay, e-statement, mobile deposit, digital wallet, and ATM services; title insurance and other financial institution-related products and services; and treasury and corporate cash management services. Carter Bankshares, Inc. was founded in 1974 and is headquartered in Martinsville, Virginia.