Community Trust Bancorp (NASDAQ:CTBI) & Auburn National Bancorporation (NASDAQ:AUBN) Financial Survey

Community Trust Bancorp (NASDAQ:CTBI) and Auburn National Bancorporation (NASDAQ:AUBN) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, analyst recommendations and dividends.

Profitability

This table compares Community Trust Bancorp and Auburn National Bancorporation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Community Trust Bancorp	23.95%	11.96%	1.51%
Auburn National Bancorporation	16.53%	8.27%	0.72%

Dividends

Community Trust Bancorp pays an annual dividend of $2.12 per share and has a dividend yield of 3.3%. Auburn National Bancorporation pays an annual dividend of $1.08 per share and has a dividend yield of 4.5%. Community Trust Bancorp pays out 39.0% of its earnings in the form of a dividend. Auburn National Bancorporation pays out 51.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Community Trust Bancorp has increased its dividend for 44 consecutive years.

Volatility & Risk

Community Trust Bancorp has a beta of 0.53, indicating that its share price is 47% less volatile than the S&P 500. Comparatively, Auburn National Bancorporation has a beta of 0.41, indicating that its share price is 59% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Community Trust Bancorp and Auburn National Bancorporation, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Community Trust Bancorp	0	0	3	0	3.00
Auburn National Bancorporation	0	1	0	0	2.00

Community Trust Bancorp presently has a consensus price target of $63.50, indicating a potential downside of 1.43%. Given Community Trust Bancorp’s stronger consensus rating and higher possible upside, research analysts clearly believe Community Trust Bancorp is more favorable than Auburn National Bancorporation.

Earnings & Valuation

This table compares Community Trust Bancorp and Auburn National Bancorporation”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Community Trust Bancorp	$409.34 million	2.86	$98.06 million	$5.43	11.86
Auburn National Bancorporation	$43.89 million	1.91	$7.26 million	$2.08	11.54

Community Trust Bancorp has higher revenue and earnings than Auburn National Bancorporation. Auburn National Bancorporation is trading at a lower price-to-earnings ratio than Community Trust Bancorp, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

60.2% of Community Trust Bancorp shares are held by institutional investors. Comparatively, 39.5% of Auburn National Bancorporation shares are held by institutional investors. 2.6% of Community Trust Bancorp shares are held by company insiders. Comparatively, 18.7% of Auburn National Bancorporation shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Community Trust Bancorp beats Auburn National Bancorporation on 15 of the 17 factors compared between the two stocks.

About Community Trust Bancorp

Community Trust Bancorp, Inc. operates as the bank holding company for Community Trust Bank, Inc. that engages in the provision of commercial and personal banking, and trust and wealth management services to small and mid-sized communities in eastern, northeastern, central, and south-central Kentucky, as well as southern West Virginia, and northeastern Tennessee. The company accepts time and demand deposits, checking accounts, savings accounts and savings certificates, individual retirement accounts and Keogh plans, and money market accounts. Its loan portfolio includes commercial, construction, mortgage, and personal loans; lease-financing, lines of credit, revolving lines of credit, and term loans, as well as other specialized loans, including asset-based financing; residential and commercial real estate loans; and consumer loans. The company also provides cash management, renting safe deposit boxes, and funds transfer services; issues letters of credit; and acts as a trustee of personal trusts, executor of estates, trustee for employee benefit trusts, and paying agent for bond and stock issues, as well as an investment agent and depositor for securities. In addition, it offers securities brokerage services; debit cards; annuity and life insurance products; and repurchase agreements, as well as mobile, internet banking, and e-statement services. The company was founded in 1903 and is headquartered in Pikeville, Kentucky.

About Auburn National Bancorporation

Auburn National Bancorporation, Inc. operates as the bank holding company for AuburnBank that provides various banking products and services in East Alabama. The company offers checking, savings, and transaction deposit accounts, as well as certificates of deposit. It also provides commercial, financial, agricultural, real estate construction, and consumer loan products; and other financial services. In addition, the company offers automated teller services; debit cards; online banking, bill payment, and other electronic banking services; and safe deposit boxes. Auburn National Bancorporation, Inc. was founded in 1907 and is headquartered in Auburn, Alabama.