Catalyst Bancorp (NASDAQ:CLST) versus Equity Bancshares (NYSE:EQBK) Financial Analysis

Equity Bancshares (NYSE:EQBK) and Catalyst Bancorp (NASDAQ:CLST) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, earnings, profitability and risk.

Risk and Volatility

Equity Bancshares has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500. Comparatively, Catalyst Bancorp has a beta of 0.11, indicating that its stock price is 89% less volatile than the S&P 500.

Profitability

This table compares Equity Bancshares and Catalyst Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Equity Bancshares	8.26%	13.34%	1.46%
Catalyst Bancorp	12.99%	2.47%	0.71%

Institutional and Insider Ownership

71.8% of Equity Bancshares shares are owned by institutional investors. Comparatively, 33.1% of Catalyst Bancorp shares are owned by institutional investors. 14.5% of Equity Bancshares shares are owned by insiders. Comparatively, 10.1% of Catalyst Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations for Equity Bancshares and Catalyst Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Equity Bancshares	0	4	4	1	2.67
Catalyst Bancorp	0	1	0	0	2.00

Equity Bancshares presently has a consensus price target of $55.00, suggesting a potential upside of 7.13%. Given Equity Bancshares’ stronger consensus rating and higher possible upside, research analysts plainly believe Equity Bancshares is more favorable than Catalyst Bancorp.

Valuation and Earnings

This table compares Equity Bancshares and Catalyst Bancorp”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Equity Bancshares	$367.98 million	2.87	$22.73 million	$1.67	30.74
Catalyst Bancorp	$23.69 million	3.08	$2.05 million	$0.55	32.89

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

Summary

Equity Bancshares beats Catalyst Bancorp on 12 of the 15 factors compared between the two stocks.

About Equity Bancshares

Equity Bancshares, Inc. operates as the bank holding company for Equity Bank that provides a range of banking, mortgage banking, and financial services to individual and corporate customers. The company accepts various demand, savings, money market, and time deposits. Its loan products include commercial and industrial, commercial real estate-backed, commercial lines of credit, working capital, term, equipment financing, acquisition, expansion and development, borrowing base, real estate construction, homebuilder, agricultural, government guaranteed, and other loan products to national and regional companies, restaurant franchisees, hoteliers, real estate developers, manufacturing and industrial companies, agribusiness companies, and other businesses. The company’s loan products also comprise various consumer loans to individuals and professionals, including residential real estate loans, home equity loans and lines of credit, installment loans, unsecured and secured personal lines of credit, overdraft protection, and letters of credit. It also provides debit cards; online banking solutions, such as access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; mobile banking solutions comprising remote check deposits with mobile bill pay; ATMs; and treasury management, wire transfer, automated clearing house, and stop payment services. In addition, the company offers cash management deposit products, such as lockbox, remote deposit capture, positive pay, reverse positive pay, account reconciliation services, zero balance accounts, and sweep accounts, as well as banking services through telephone, mail, and personal appointments. As of December 31, 2021, it operated a network of 69 branches in Arkansas, Kansas, Missouri, and Oklahoma. The company was founded in 2002 and is headquartered in Wichita, Kansas.

About Catalyst Bancorp

Catalyst Bancorp, Inc. operates as a holding company for Catalyst Bank that provides various banking services to individuals and businesses in Louisiana. The company accepts various deposit products, including savings accounts, demand and NOW accounts, money market accounts, and certificates of deposit. It also offers single family residential first mortgage loans, commercial real estate mortgage loans, multi-family residential mortgage loans, commercial and industrial loans, construction and land loans, consumer loans, and other loans. In addition, the company invests in various types of securities comprising mortgage-backed securities, the U.S. treasury obligations, securities of various federal agencies and of state and municipal governments, certificates of deposit at federally insured banks and savings institutions, and federal funds. Catalyst Bancorp, Inc. was founded in 1922 and is headquartered in Opelousas, Louisiana.