ConnectOne Bancorp (CNOB) versus Veritex (VBTX) Head to Head Analysis

ConnectOne Bancorp (NASDAQ:CNOB) and Veritex (NASDAQ:VBTX) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Dividends

ConnectOne Bancorp pays an annual dividend of $0.30 per share and has a dividend yield of 1.6%. Veritex does not pay a dividend. ConnectOne Bancorp pays out 17.1% of its earnings in the form of a dividend.

Institutional & Insider Ownership

66.9% of ConnectOne Bancorp shares are owned by institutional investors. Comparatively, 77.9% of Veritex shares are owned by institutional investors. 7.7% of ConnectOne Bancorp shares are owned by company insiders. Comparatively, 4.7% of Veritex shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares ConnectOne Bancorp and Veritex’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ConnectOne Bancorp $189.53 million 3.15 $43.22 million $1.75 10.58
Veritex $87.13 million 6.55 $15.15 million $0.95 24.81

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

Volatility and Risk

ConnectOne Bancorp has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500. Comparatively, Veritex has a beta of 1.55, suggesting that its share price is 55% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for ConnectOne Bancorp and Veritex, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ConnectOne Bancorp 0 0 1 1 3.50
Veritex 0 0 5 0 3.00

ConnectOne Bancorp currently has a consensus target price of $35.00, suggesting a potential upside of 89.09%. Veritex has a consensus target price of $34.50, suggesting a potential upside of 46.37%. Given ConnectOne Bancorp’s stronger consensus rating and higher possible upside, equities analysts clearly believe ConnectOne Bancorp is more favorable than Veritex.

Profitability

This table compares ConnectOne Bancorp and Veritex’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ConnectOne Bancorp 24.26% 12.07% 1.33%
Veritex 23.12% 6.83% 1.11%

Summary

ConnectOne Bancorp beats Veritex on 11 of the 17 factors compared between the two stocks.

About ConnectOne Bancorp

ConnectOne Bancorp, Inc. operates as the bank holding company for ConnectOne Bank, a state chartered bank that provides various commercial banking products and services. The company offers a range of deposit products, including personal and business checking accounts, retirement accounts, money market accounts, time and savings accounts, and NOW accounts. It also provides personal and commercial business loans on a secured and unsecured basis; revolving lines of credit; commercial mortgage loans; residential mortgages on primary and secondary residences; home equity loans; bridge loans; and other personal purpose loans. In addition, the company offers insurance and annuities, and mutual funds; credit cards, wire transfers, and safe deposit boxes; access to automated teller services; and Internet banking, treasury direct, ACH origination, lockbox, mobile banking, and remote deposit capture banking services. As of October 17, 2018, it operated through its headquarters in New Jersey; and 21 other banking offices across New Jersey and New York. ConnectOne Bancorp, Inc. serves small-to-medium sized businesses, high net worth individuals, professional practices, and consumer and retail customers. The company was formerly known as Center Bancorp, Inc. and changed its name to ConnectOne Bancorp, Inc. in July 2014. ConnectOne Bancorp, Inc. was incorporated in 1982 and is headquartered in Englewood Cliffs, New Jersey.

About Veritex

Veritex Holdings, Inc. operates as the holding company for Veritex Community Bank that provides various commercial banking products and services to small and medium-sized businesses, and professionals. The company's deposit products include checking, demand, savings, money market, and time deposit accounts, as well as commercial deposit and financial institution money market accounts. Its loan portfolio consists of commercial real estate and general commercial loans, residential real estate loans, construction and land loans, farmland loans, and consumer loans. The company also provides a range of online banking solutions, such as access to account balances, online transfers, online bill payment and electronic delivery of customer statements, and ATMs, as well as banking through telephone, mail, and personal appointment. In addition, it offers debit cards, night depository services, direct deposits, cashier's checks, and letters of credit; treasury management services, including balance reporting, transfers between accounts, wire transfer initiation, automated clearinghouse origination, and stop payments; and cash management deposit products consisting of lockbox, remote deposit capture, positive pay, reverse positive pay, account reconciliation services, zero balance accounts, and sweep accounts. The company operates through 20 branches and 1 mortgage office located in the Dallas-Fort Worth metroplex, as well as 1 branch in the Houston metropolitan area. Veritex Holdings, Inc. was founded in 2009 and is headquartered in Dallas, Texas.

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