Comparing Nicolet Bankshares (NCBS) & Citigroup (C)

Nicolet Bankshares (NASDAQ:NCBS) and Citigroup (NYSE:C) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, dividends, risk, profitability and earnings.

Dividends

Citigroup pays an annual dividend of $1.80 per share and has a dividend yield of 2.5%. Nicolet Bankshares does not pay a dividend. Citigroup pays out 33.8% of its earnings in the form of a dividend. Citigroup has raised its dividend for 3 consecutive years.

Volatility and Risk

Nicolet Bankshares has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500. Comparatively, Citigroup has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Nicolet Bankshares and Citigroup, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nicolet Bankshares 0 4 1 0 2.20
Citigroup 1 9 14 0 2.54

Nicolet Bankshares presently has a consensus price target of $60.10, indicating a potential upside of 11.86%. Citigroup has a consensus price target of $82.16, indicating a potential upside of 13.40%. Given Citigroup’s stronger consensus rating and higher probable upside, analysts clearly believe Citigroup is more favorable than Nicolet Bankshares.

Valuation and Earnings

This table compares Nicolet Bankshares and Citigroup’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nicolet Bankshares $143.89 million 3.60 $33.15 million $3.42 15.71
Citigroup $87.97 billion 2.12 -$6.80 billion $5.33 13.59

Nicolet Bankshares has higher earnings, but lower revenue than Citigroup. Citigroup is trading at a lower price-to-earnings ratio than Nicolet Bankshares, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Nicolet Bankshares and Citigroup’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nicolet Bankshares 24.13% 10.62% 1.30%
Citigroup -5.45% 8.78% 0.88%

Insider and Institutional Ownership

32.6% of Nicolet Bankshares shares are owned by institutional investors. Comparatively, 74.8% of Citigroup shares are owned by institutional investors. 16.4% of Nicolet Bankshares shares are owned by insiders. Comparatively, 0.1% of Citigroup shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Citigroup beats Nicolet Bankshares on 9 of the 17 factors compared between the two stocks.

Nicolet Bankshares Company Profile

Nicolet Bankshares, Inc. operates as the holding company for Nicolet National Bank that provides commercial and retail banking services for businesses and individuals. The company accepts checking, savings, and money market accounts; various certificates of deposit; and individual retirement accounts. It also offers commercial loans, including commercial, industrial, and business loans and lines of credit; owner-occupied commercial real estate loans; agricultural (AG) production and AG real estate loans; commercial real estate investment real estate loans; construction and land development loans; residential real estate loans, such as residential first lien mortgages, junior lien mortgages, home equity loans, lines of credit, and residential construction loans; and consumer loans. In addition, the company provides cash management, international banking, personal brokerage, safe deposit boxes, and trust and fiduciary, as well as wealth management and retirement plan services. Further, it offers mortgage refinancing; online services, such as commercial, retail, and trust online banking; automated bill payment, mobile banking deposits and account access, remote deposit capture, and telephone banking services; and other services consisting of wire transfers, debit cards, credit cards, pre-paid gift cards, direct deposits, official bank checks. Additionally, the company provides investment strategy and transactional services to financial institutions. As of December 31, 2017, it operated 38 branches located in northeast and central Wisconsin, as well as in Menominee, Michigan. The company was formerly known as Green Bay Financial Corporation and changed its name to Nicolet Bankshares, Inc. in March 2002. Nicolet Bankshares, Inc. was founded in 2000 and is headquartered in Green Bay, Wisconsin.

Citigroup Company Profile

Citigroup Inc., a diversified financial services holding company, provides various financial products and services for consumers, corporations, governments, and institutions. The company operates through two segments, Global Consumer Banking (GCB) and Institutional Clients Group (ICG). The GCB segment offers traditional banking services to retail customers through retail banking, commercial banking, Citi-branded cards, and Citi retail services. It also provides various banking, credit card lending, and investment services through a network of local branches, offices, and electronic delivery systems. The ICG segment provides wholesale banking products and services, including fixed income and equity sales and trading, foreign exchange, prime brokerage, derivative services, equity and fixed income research, corporate lending, investment banking and advisory services, private banking, cash management, trade finance, and securities services to corporate, institutional, public sector, and high-net-worth clients. The company operates in North America, Latin America, Asia, Europe, the Middle East, and Africa. Citigroup Inc. was founded in 1812 and is based in New York, New York.

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