City (CHCO) & Its Peers Critical Review

City (NASDAQ: CHCO) is one of 310 publicly-traded companies in the “Banks” industry, but how does it weigh in compared to its competitors? We will compare City to similar businesses based on the strength of its analyst recommendations, institutional ownership, valuation, dividends, earnings, profitability and risk.

Profitability

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

Net Margins Return on Equity Return on Assets
City 29.25% 12.34% 1.45%
City Competitors 18.62% 8.32% 0.94%

Volatility and Risk

City has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, City’s competitors have a beta of 0.79, indicating that their average stock price is 21% less volatile than the S&P 500.

Insider & Institutional Ownership

65.0% of City shares are owned by institutional investors. Comparatively, 52.1% of shares of all “Banks” companies are owned by institutional investors. 3.9% of City shares are owned by insiders. Comparatively, 10.4% of shares of all “Banks” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
City $190.98 million $52.12 million 17.52
City Competitors $5.50 billion $827.87 million 393.04

City’s competitors have higher revenue and earnings than City. City 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.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
City 0 2 0 0 2.00
City Competitors 2234 8678 8652 353 2.36

City currently has a consensus target price of $66.50, suggesting a potential downside of 0.92%. As a group, “Banks” companies have a potential downside of 7.50%. Given City’s higher probable upside, equities analysts plainly believe City is more favorable than its competitors.

Dividends

City pays an annual dividend of $1.76 per share and has a dividend yield of 2.6%. City pays out 46.0% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 2.0% and pay out 35.8% of their earnings in the form of a dividend.

Summary

City competitors beat City on 8 of the 15 factors compared.

City Company Profile

City Holding Company is a financial holding company. The Company conducts its principal activities through its subsidiary, City National Bank of West Virginia (City National). As of December 31, 2016, the City National provided banking, trust and investment management and other financial solutions through its network of 85 banking offices located in the states of West Virginia, Virginia, eastern Kentucky and southeastern Ohio. City National offers various products and services, including commercial banking, consumer banking, mortgage banking, and wealth management and trust services. City National provides credit, deposit and investment advisory products and services to rural and small community markets in addition to cities, including Charleston, Huntington, Martinsburg, Winchester, Staunton, Virginia Beach, Ashland and Lexington. City National offers a range of commercial banking services to corporations and other business customers.

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