Analyzing Carter Bankshares (NASDAQ:CARE) & Chesapeake Financial Shares (OTCMKTS:CPKF)
by Tristan Rich · The Markets DailyChesapeake Financial Shares (OTCMKTS:CPKF – Get Free Report) and Carter Bankshares (NASDAQ:CARE – Get Free Report) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, earnings, profitability, risk and valuation.
Valuation & Earnings
This table compares Chesapeake Financial Shares and Carter Bankshares”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Chesapeake Financial Shares | $82.72 million | 1.10 | $10.12 million | $1.95 | 9.90 |
| Carter Bankshares | $126.13 million | 3.11 | $23.19 million | $0.57 | 29.95 |
Carter Bankshares has higher revenue and earnings than Chesapeake Financial Shares. Chesapeake Financial Shares is trading at a lower price-to-earnings ratio than Carter Bankshares, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Chesapeake Financial Shares has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500. Comparatively, Carter Bankshares has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings for Chesapeake Financial Shares and Carter Bankshares, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Chesapeake Financial Shares | 0 | 0 | 0 | 0 | N/A |
| Carter Bankshares | 0 | 0 | 2 | 0 | 3.00 |
Carter Bankshares has a consensus price target of $21.50, indicating a potential upside of 25.95%. Given Carter Bankshares’ higher probable upside, analysts plainly believe Carter Bankshares is more favorable than Chesapeake Financial Shares.
Profitability
This table compares Chesapeake Financial Shares and Carter Bankshares’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Chesapeake Financial Shares | 10.11% | 9.35% | 0.62% |
| Carter Bankshares | 5.41% | 4.09% | 0.32% |
Institutional and Insider Ownership
3.7% of Chesapeake Financial Shares shares are held by institutional investors. Comparatively, 41.5% of Carter Bankshares shares are held by institutional investors. 39.5% of Chesapeake Financial Shares shares are held by company insiders. Comparatively, 1.9% of Carter Bankshares shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
Carter Bankshares beats Chesapeake Financial Shares on 8 of the 13 factors compared between the two stocks.
About Chesapeake Financial Shares
Chesapeake Financial Shares, Inc. operates as the bank holding company for Chesapeake Bank that provides various banking products and services for individuals and businesses in the United States. The company accepts interest and noninterest checking, savings, and money market accounts; and variable-rate and fixed-term money market accounts, as well as certificates of deposit. It also offers mortgage, and single-family residential and residential construction loans; commercial loans, which include owner-occupied commercial development, retail, builders/contractors, medical, service and professional, hospitality, nonprofits, marine industry, and agricultural and seafood loans; and consumer and other loans. In addition, the company provides merchant processing, accounts receivable financing, wealth management and trust, and mortgage banking services, as well as cash management services. The company was founded in 1900 and is based in Kilmarnock, Virginia.
About Carter Bankshares
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.