Summit Financial Group (NASDAQ:SMMF – Get Rating) and Columbia Banking System (NASDAQ:COLB – Get Rating) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, risk, institutional ownership, dividends and valuation.
Summit Financial Group pays an annual dividend of $0.72 per share and has a dividend yield of 2.9%. Columbia Banking System pays an annual dividend of $1.20 per share and has a dividend yield of 4.0%. Summit Financial Group pays 20.7% of its profits as a dividend. Columbia Banking System pays 43.0% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Summit Financial Group has increased its dividend for 7 consecutive years.
Volatility and risk
Summit Financial Group has a beta of 0.41, suggesting its stock price is 59% less volatile than the S&P 500. In comparison, Columbia Banking System has a beta of 0.63, suggesting its stock price is its stock is 37% less volatile than the S&P 500.
This is a summary of the current ratings of Summit Financial Group and Columbia Banking System, as provided by MarketBeat.com.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|Summit Financial Group||0||0||1||0||3.00|
|Colombian banking system||0||3||2||0||2.40|
Columbia Banking System has a consensus price target of $37.75, indicating a potential upside of 25.08%. Given the higher possible upside of Columbia Banking System, analysts clearly believe that Columbia Banking System is more favorable than Summit Financial Group.
Institutional and Insider Ownership
34.1% of Summit Financial Group shares are held by institutional investors. By comparison, 84.1% of Columbia Banking System’s stock is held by institutional investors. 13.2% of Summit Financial Group shares are held by insiders. By comparison, 0.6% of Columbia Banking System’s stock is held by insiders. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a stock will outperform the market over the long term.
Valuation and benefits
This table compares the revenue, earnings per share (EPS), and valuation of Summit Financial Group and Columbia Banking System.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|Summit Financial Group||$142.62 million||2.19||$45.74 million||$3.47||7.06|
|Colombian banking system||$630.16 million||3.77||$202.82 million||$2.79||10.82|
Columbia Banking System has higher revenue and profit than Summit Financial Group. Summit Financial Group trades at a lower price-to-earnings ratio than Columbia Banking System, indicating that it is currently the more affordable of the two stocks.
This table compares the net margins, return on equity and return on assets of Summit Financial Group and Columbia Banking System.
|Net margins||Return on equity||return on assets|
|Summit Financial Group||32.07%||15.06%||1.34%|
|Colombian banking system||32.19%||8.91%||1.13%|
Columbia Banking System beats Summit Financial Group on 10 of 17 factors compared between the two stocks.
Summit Financial Group Company Profile (Get an evaluation)
Summit Financial Group, Inc. operates as a financial holding company for Summit Community Bank, Inc. which provides community banking and other financial services to individuals and businesses primarily in the eastern parts of the panhandle , southern and north-central West Virginia and northern, Shenandoah Valley and areas of southwestern Virginia and central Kentucky. The Company’s community banking services include demand, savings and term deposits; commercial, commercial real estate, land construction and development, residential real estate and consumer loans; and home equity warehouse lines of credit, as well as trust and wealth management, cash management and insurance services. As of December 31, 2021, it operated through 45 banking offices. The company was incorporated in 1987 and is headquartered in Moorefield, West Virginia.
Columbia Banking System Company Profile (Get an evaluation)
Columbia Banking System, Inc. operates as a bank holding company for Columbia State Bank which provides a range of banking services to small and medium-sized businesses, professionals and individuals in the United States. It offers personal banking products and services, including interest-free and interest-bearing checks, savings accounts, money market and certificates of deposit; home mortgages for purchases and refinances, home equity loans and lines of credit and other personal loans; debit and credit cards; and digital banking. The Company also provides business banking products and services, such as checking, savings, interest-bearing money market and certificate of deposit accounts; agricultural, asset-based, builder and other commercial real estate loans, as well as small business administration guaranteed loans; and professional banking, cash management, merchant card and international banking. In addition, it offers wealth management solutions that include financial planning services, such as asset allocation, net worth analysis, estate planning and preservation, education funding and transfer of assets; long-term care and life and disability insurance solutions; individual retirement solutions including retirement planning, retirement income strategies and traditional and Roth individual retirement accounts; and business solutions, which include corporate pension plans, key person insurance, corporate succession planning and deferred compensation plans for individuals, families and professional businesses. In addition, the company provides trust, investment and administrative trust services, such as personal and special needs trusts, estate settlement, investment agency and charitable organization management. It operates a network of 153 branches, including 68 in Washington State, 59 in Oregon, 15 in Idaho and 11 in California. The company was founded in 1993 and is based in Tacoma, Washington.
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