Financial Comparison: Cadence Bank (NYSE:CADE) versus ConnectOne Bancorp (NASDAQ:CNOB)


Cadence Bank (NYSE:CADEGet Rating) and ConnectOne Bancorp (NASDAQ:CNOBGet Rating) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, earnings and valuation.

Analyst Recommendations

This is a summary of recent ratings for Cadence Bank and ConnectOne Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cadence Bank 0 0 4 1 3.20
ConnectOne Bancorp 0 0 2 0 3.00

Cadence Bank presently has a consensus target price of $31.33, suggesting a potential upside of 15.75%. ConnectOne Bancorp has a consensus target price of $30.00, suggesting a potential upside of 12.11%. Given Cadence Bank’s stronger consensus rating and higher possible upside, analysts clearly believe Cadence Bank is more favorable than ConnectOne Bancorp.

Institutional & Insider Ownership

71.0% of Cadence Bank shares are held by institutional investors. Comparatively, 67.8% of ConnectOne Bancorp shares are held by institutional investors. 2.2% of Cadence Bank shares are held by insiders. Comparatively, 6.6% of ConnectOne Bancorp shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Cadence Bank has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500. Comparatively, ConnectOne Bancorp has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500.

Valuation and Earnings

This table compares Cadence Bank and ConnectOne Bancorp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cadence Bank $1.26 billion 2.33 $195.16 million $1.71 15.83
ConnectOne Bancorp $317.43 million 3.31 $130.35 million $3.12 8.58

Cadence Bank has higher revenue and earnings than ConnectOne Bancorp. ConnectOne Bancorp is trading at a lower price-to-earnings ratio than Cadence Bank, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Cadence Bank and ConnectOne Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cadence Bank 17.35% 11.01% 1.09%
ConnectOne Bancorp 38.52% 12.69% 1.55%

Dividends

Cadence Bank pays an annual dividend of $0.88 per share and has a dividend yield of 3.3%. ConnectOne Bancorp pays an annual dividend of $0.62 per share and has a dividend yield of 2.3%. Cadence Bank pays out 51.5% of its earnings in the form of a dividend. ConnectOne Bancorp pays out 19.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Cadence Bank has raised its dividend for 2 consecutive years and ConnectOne Bancorp has raised its dividend for 2 consecutive years.

Summary

Cadence Bank beats ConnectOne Bancorp on 9 of the 17 factors compared between the two stocks.

About Cadence Bank

(Get Rating)

Cadence Bank provides commercial banking and financial services in the United States. Its products and services include consumer banking, consumer loans, mortgages, home equity lines and loans, credit cards, commercial and business banking, treasury management, specialized and asset-based lending, commercial real estate, equipment financing, and correspondent banking services. The company’s products and services also comprise small business administration lending, foreign exchange, wealth management, investment and trust, financial planning, retirement plan management, and personal and business insurance services. As of March 3, 2022, it operated approximately 400 branch locations across the South, Midwest, and Texas. The company was incorporated in 1876 and is headquartered in Tupelo, Mississippi.

About ConnectOne Bancorp

(Get Rating)

ConnectOne Bancorp, Inc. operates as the bank holding company for ConnectOne Bank that provides commercial banking products and services for small and mid-sized businesses, local professionals, and individuals in the Northern New Jersey and New York Metropolitan area, and South Florida market. The company offers personal and business checking, retirement, money market, and time and savings accounts. It also provides consumer and commercial business loans on a secured and unsecured basis; revolving lines of credit; commercial mortgage loans; residential mortgages on primary and secondary residences; home equity loans; bridge loans; other personal purpose loans; and commercial construction and real estate loans. In addition, the company offers check cards, ATM cards, credit cards, wire transfers, access to automated teller services, Internet banking, treasury direct, automated clearing house origination, mobile banking by phone, safe deposit boxes, and remote deposit capture services. It operates through a network of eight banking offices in Bergen County, five banking offices in Union County, one banking office in Morris County, one office in Essex County, one office in Hudson County, one office in Monmouth County, one banking office in Manhattan in New York City, one office in Nassau County on Long Island, one in Astoria, and five branches in the Hudson Valley, as well as one financial center in West Palm Beach in Palm Beach County. The company was formerly known as Center Bancorp, Inc. and changed its name to ConnectOne Bancorp, Inc. in July 2014. ConnectOne Bancorp, Inc. was incorporated in 1982 and is headquartered in Englewood Cliffs, New Jersey.



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