Contrasting West Bancorporation (NASDAQ:WTBA) & Citizens Financial Group (NASDAQ:CFG)

West Bancorporation (NASDAQ:WTBA) and Citizens Financial Group (NYSE:CFG) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations for West Bancorporation and Citizens Financial Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
West Bancorporation 0 0 0 0 N/A
Citizens Financial Group 1 3 7 0 2.55

Citizens Financial Group has a consensus price target of $39.61, suggesting a potential upside of 3.18%. Given Citizens Financial Group’s higher possible upside, analysts plainly believe Citizens Financial Group is more favorable than West Bancorporation.

Volatility and Risk

West Bancorporation has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500. Comparatively, Citizens Financial Group has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500.

Profitability

This table compares West Bancorporation and Citizens Financial Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
West Bancorporation 27.17% 14.27% 1.20%
Citizens Financial Group 22.29% 8.85% 1.12%

Dividends

West Bancorporation pays an annual dividend of $0.84 per share and has a dividend yield of 3.4%. Citizens Financial Group pays an annual dividend of $1.44 per share and has a dividend yield of 3.8%. Citizens Financial Group pays out 40.4% of its earnings in the form of a dividend.

Earnings & Valuation

This table compares West Bancorporation and Citizens Financial Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
West Bancorporation $92.54 million 4.32 $28.51 million N/A N/A
Citizens Financial Group $7.35 billion 2.27 $1.72 billion $3.56 10.78

Citizens Financial Group has higher revenue and earnings than West Bancorporation.

Insider and Institutional Ownership

37.0% of West Bancorporation shares are held by institutional investors. Comparatively, 96.2% of Citizens Financial Group shares are held by institutional investors. 3.1% of West Bancorporation shares are held by insiders. Comparatively, 0.3% of Citizens Financial Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

About West Bancorporation

West Bancorporation, Inc. operates as the financial holding company for West Bank that provides community banking and trust services to individuals and small- to medium-sized businesses in the United States. It offers various deposit products, including checking, savings, and money market accounts, as well as time certificates of deposit. The company also provides loan products comprising commercial real estate loans, construction and land development loans, commercial lines of credit, and commercial term loans; consumer loans, including loans extended to individuals for household, family, and other personal expenditures not secured by real estate; and 1-4 family residential mortgages and home equity loans. In addition, it offers trust services, including the administration of estates, conservatorships, personal trusts, and agency accounts. Further, the company provides Internet and mobile banking services; treasury management services comprising cash management, client-generated automated clearing house transaction, remote deposit, and fraud protection services; and merchant credit card processing services and corporate credit cards. It has eight offices in the Des Moines area; one office in Coralville; and one office in Rochester, Minnesota. West Bancorporation, Inc. was founded in 1893 and is based in West Des Moines, Iowa.

About Citizens Financial Group

Citizens Financial Group, Inc. operates as the bank holding company for Citizens Bank, National Association and Citizens Bank of Pennsylvania that provides retail and commercial banking products and services in the United States. The company operates in two segments, Consumer Banking and Commercial Banking. The Consumer Banking segment offers traditional banking products and services, including checking and savings accounts, home and education loans, credit cards, business loans, mortgage and home equity lending, and unsecured product finance and personal loans, as well as wealth management and investment services to retail customers and small businesses. This segment also provides indirect auto finance for new and used vehicles through auto dealerships. The Commercial Banking segment offers various financial products and solutions, such as loans and leasing, trade finance, deposit and treasury management, cash management, and foreign exchange and interest rate risk management solutions; and corporate finance, merger and acquisition, and debt and equity capital markets capabilities. It serves government banking, not-for-profit, healthcare, technology, professionals, oil and gas, asset finance, franchise finance, asset-based lending, commercial real estate, private equity, and sponsor finance industries. Citizens Financial Group, Inc. operates approximately 1,100 branches and 2,900 ATMs in 11 states in the New England, Mid-Atlantic, and Midwest regions, as well as through online, telephone, and mobile banking services; and maintains approximately 140 retail and commercial non-branch offices in its banking footprint and in other states, and the District of Columbia. The company was formerly known as RBS Citizens Financial Group, Inc. and changed its name to Citizens Financial Group, Inc. in April 2014. Citizens Financial Group, Inc. was founded in 1828 and is headquartered in Providence, Rhode Island.

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