CrossFirst Bankshares vs. Colony Bankcorp: An In-Depth Comparison

CrossFirst Bankshares (NASDAQ:CFB) and Colony Bankcorp (NASDAQ:CBAN) both fall into the small-cap finance category, bringing unique offerings to the market. This article will provide a comparative analysis of these two companies, examining factors such as analyst recommendations, dividends, institutional ownership, earnings, profitability, risk, and valuation.

Valuation and Earnings

To start, we will look at the valuation and earnings of both CrossFirst Bankshares and Colony Bankcorp. The following table illustrates their gross revenue, earnings per share (EPS), and valuation metrics.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CrossFirst Bankshares	$455.82 million	1.85	$66.67 million	$1.47	11.62
Colony Bankcorp	$160.55 million	1.86	$21.75 million	$1.25	13.61

From the data, it's clear that CrossFirst Bankshares enjoys higher revenue and net income compared to Colony Bankcorp. Additionally, the price-to-earnings (P/E) ratio for CrossFirst shows it's a more affordable investment at 11.62, compared to Colony Bankcorp's 13.61.

Analyst Ratings

A look at analyst recommendations provides insight into market sentiment for these stocks. Below is a summary of recent ratings for each company.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CrossFirst Bankshares	0	0	4	0	3.00
Colony Bankcorp	0	0	0	0	0.00

The consensus price target for CrossFirst stands at $18.50, highlighting a potential upside of 8.31%. With several buy ratings and a favorable target, analysts appear to be more optimistic about CrossFirst compared to Colony Bankcorp.

Profitability

Profitability is another critical factor in evaluating these companies. The following table shows comparisons in net margins, return on equity (ROE), and return on assets (ROA).

	Net Margins	Return on Equity	Return on Assets
CrossFirst Bankshares	14.52%	10.72%	1.04%
Colony Bankcorp	12.75%	9.00%	0.77%

CrossFirst Bankshares has stronger profitability ratios, indicating a more efficient operation compared to Colony Bankcorp.

Institutional and Insider Ownership

Institutional ownership is a telling factor of investor confidence in stocks. For CrossFirst Bankshares, 56.3% of its shares are held by institutional investors, while Colony Bankcorp has 50.4%. Additionally, 9.3% of shares for CrossFirst are owned by insiders, compared to 6.6% for Colony Bankcorp. This suggests greater investor trust in CrossFirst's future performance.

Volatility & Risk

Both companies exhibit different levels of volatility. CrossFirst Bankshares has a beta of 1.04, indicating that it is 4% more volatile than the market. In contrast, Colony Bankcorp's beta of 0.57 shows that it is 43% less volatile. This could be an important consideration for investors with varying risk tolerances.

Summary

When comparing these two financial firms, CrossFirst Bankshares outperforms Colony Bankcorp on 12 out of 14 evaluated factors, showcasing its favorable market position.

About CrossFirst Bankshares

CrossFirst Bankshares, Inc. serves as the parent company for CrossFirst Bank, providing a range of banking services that include commercial and residential loans, deposit services, and treasury management. Founded in 2007, the bank operates in various states such as Kansas, Missouri, Texas, and New Mexico.

About Colony Bankcorp

Colony Bankcorp, Inc. acts as the holding company for Colony Bank. It provides a variety of banking services, including loans and deposit accounts. Established in 1975, the company primarily serves customers in Georgia.

In conclusion, investors may find CrossFirst Bankshares to be the more attractive option based on the analysis of multiple financial factors and market outlooks.

investment, finance, stocks