Chemical Financial Corporation (CHFC) and Its Competitors Critical Analysis

Chemical Financial Corporation (NASDAQ: CHFC) is one of 211 publicly-traded companies in the “Commercial Banks” industry, but how does it contrast to its competitors? We will compare Chemical Financial Corporation to similar companies based on the strength of its dividends, institutional ownership, analyst recommendations, profitability, earnings, valuation and risk.

Dividends

Chemical Financial Corporation pays an annual dividend of $1.12 per share and has a dividend yield of 2.2%. Chemical Financial Corporation pays out 42.7% of its earnings in the form of a dividend. As a group, “Commercial Banks” companies pay a dividend yield of 1.9% and pay out 35.0% of their earnings in the form of a dividend.

Volatility & Risk

Chemical Financial Corporation has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, Chemical Financial Corporation’s competitors have a beta of 0.74, indicating that their average stock price is 26% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Chemical Financial Corporation and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chemical Financial Corporation 1 1 4 0 2.50
Chemical Financial Corporation Competitors 360 2850 2309 66 2.37

Chemical Financial Corporation currently has a consensus price target of $53.25, indicating a potential upside of 2.96%. As a group, “Commercial Banks” companies have a potential upside of 9.10%. Given Chemical Financial Corporation’s competitors higher probable upside, analysts plainly believe Chemical Financial Corporation has less favorable growth aspects than its competitors.

Institutional and Insider Ownership

78.4% of Chemical Financial Corporation shares are held by institutional investors. Comparatively, 46.5% of shares of all “Commercial Banks” companies are held by institutional investors. 2.2% of Chemical Financial Corporation shares are held by company insiders. Comparatively, 11.7% of shares of all “Commercial Banks” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Chemical Financial Corporation and its competitors revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Chemical Financial Corporation $532.73 million $108.03 million 19.74
Chemical Financial Corporation Competitors $343.38 million $72.32 million 18.98

Chemical Financial Corporation has higher revenue and earnings than its competitors. Chemical Financial Corporation is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Chemical Financial Corporation and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chemical Financial Corporation 24.23% 8.05% 1.16%
Chemical Financial Corporation Competitors 20.63% 8.70% 0.93%

Summary

Chemical Financial Corporation beats its competitors on 9 of the 15 factors compared.

About Chemical Financial Corporation

Chemical Financial Corporation is a financial holding company. The Company operates in the commercial banking segment. The Company, through its subsidiary bank, Chemical Bank, offers banking and fiduciary products and services. These products and services include business and personal checking accounts, savings and individual retirement accounts, time deposit instruments, electronically accessed banking products, residential and commercial real estate financing, commercial lending, consumer financing, access to insurance and investment products, corporate and personal wealth management services, and other banking services. As of December 31, 2016, the Corporation and Chemical Bank served these markets through 249 banking offices. In addition to the banking offices, Chemical Bank operated eight loan production offices and over 272 automated teller machines, both on- and off-bank premises, as of December 31, 2016. Its loan portfolio includes commercial and real estate construction.

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