Critical Survey: Enterprise Bancorp (EBTC) vs. County Bancorp (ICBK)

Enterprise Bancorp (NASDAQ: EBTC) and County Bancorp (NASDAQ:ICBK) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, dividends, earnings and risk.

Analyst Ratings

This is a breakdown of current ratings and target prices for Enterprise Bancorp and County Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enterprise Bancorp 0 0 0 0 N/A
County Bancorp 0 2 1 0 2.33

County Bancorp has a consensus price target of $32.00, indicating a potential upside of 21.90%. Given County Bancorp’s higher possible upside, analysts clearly believe County Bancorp is more favorable than Enterprise Bancorp.

Volatility and Risk

Enterprise Bancorp has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, County Bancorp has a beta of 0.29, indicating that its stock price is 71% less volatile than the S&P 500.

Institutional & Insider Ownership

20.2% of Enterprise Bancorp shares are held by institutional investors. Comparatively, 25.7% of County Bancorp shares are held by institutional investors. 19.0% of Enterprise Bancorp shares are held by company insiders. Comparatively, 25.6% of County Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Enterprise Bancorp and County Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Enterprise Bancorp 17.47% 11.83% 0.98%
County Bancorp 20.40% 10.24% 0.97%

Valuation & Earnings

This table compares Enterprise Bancorp and County Bancorp’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Enterprise Bancorp $120.71 million 3.61 $19.39 million N/A N/A
County Bancorp $60.70 million 2.89 $10.42 million $1.49 17.62

Enterprise Bancorp has higher revenue and earnings than County Bancorp.

Dividends

Enterprise Bancorp pays an annual dividend of $0.58 per share and has a dividend yield of 1.6%. County Bancorp pays an annual dividend of $0.28 per share and has a dividend yield of 1.1%. County Bancorp pays out 18.8% of its earnings in the form of a dividend. Enterprise Bancorp has raised its dividend for 5 consecutive years. Enterprise Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Enterprise Bancorp beats County Bancorp on 10 of the 15 factors compared between the two stocks.

Enterprise Bancorp Company Profile

Enterprise Bancorp, Inc. operates as the holding company for Enterprise Bank and Trust Company that provides various banking products and services primarily in the greater Merrimack Valley and North Central regions of Massachusetts and Southern New Hampshire. The company offers commercial checking, business and municipal savings accounts, term certificates of deposit, money market and business sweep accounts, interest on lawyers trust accounts, escrow management accounts, personal checking accounts, savings accounts, and individual retirement accounts, as well as checking and simplified employee pension accounts. It also provides commercial mortgage loans, construction and land development loans, secured and unsecured commercial loans and lines of credit, and letters of credit; and conventional residential mortgage loans, home equity loans and lines, residential construction loans on primary and secondary residences, and secured and unsecured personal loans and lines of credit, as well as equipment lease financing services. In addition, the company offers cash management services; various investment advisory and management services, including customized investment management and trust services to individuals, family groups, commercial businesses, trusts, foundations, non-profit organizations, and endowments; and insurance products, such as property and casualty, employee benefits, and risk-management solutions. As of January 25, 2018, it had 24 full-service branches located in the Massachusetts communities of Lowell, Acton, Andover, Billerica, Chelmsford, Dracut, Fitchburg, Lawrence, Leominster, Methuen, Tewksbury, Tyngsborough, and Westford; and the New Hampshire communities of Derry, Hudson, Nashua, Pelham, Salem, and Windham. The company primarily serves business entities, non-profit organizations, professionals, and individuals. Enterprise Bancorp, Inc. was founded in 1989 and is headquartered in Lowell, Massachusetts.

County Bancorp Company Profile

County Bancorp, Inc. operates as the bank holding company for Investors Community Bank that provides a range of banking and related financial services to individuals, businesses, and industries in northeastern and central Wisconsin. The company accepts demand interest bearing and noninterest bearing, money market deposit, NOW, checking, and savings accounts, as well as time deposits. It also offers agricultural loans; commercial and industrial loans, such as conventional term loans, and lines of credit and government guaranteed loans; commercial real estate mortgage loans, including multi-family investment properties and investment retail, office, mini-storage, and warehouse loans; and consumer, personal, and residential real estate loans on a collateralized and non-collateralized basis. In addition, the company provides mobile and Internet banking, remote merchant deposit capture, cash management, safe deposit, direct deposit, notary, night depository, cashier's check, and drive-in teller services, as well as credit, debit, and ATM cards; and crop insurance and milk margin products. It operates full-service branches in Manitowoc, Appleton, Green Bay, and Stevens Point; and loan production offices in Darlington, Eau Claire, Fond du Lac, and Sheboygan. County Bancorp, Inc. was founded in 1996 and is headquartered in Manitowoc, Wisconsin.

Receive News & Ratings for Enterprise Bancorp Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Enterprise Bancorp and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply