Cullen/Frost Bankers (NYSE: CFR) and Susquehanna Bancshares (NASDAQ:SUSQ) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, risk, profitability, valuation and earnings.

Valuation & Earnings

This table compares Cullen/Frost Bankers and Susquehanna Bancshares’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Cullen/Frost Bankers $1.13 billion 5.39 $326.93 million $5.09 18.64
Susquehanna Bancshares N/A N/A N/A N/A N/A

Cullen/Frost Bankers has higher revenue and earnings than Susquehanna Bancshares.

Dividends

Cullen/Frost Bankers pays an annual dividend of $2.28 per share and has a dividend yield of 2.4%. Susquehanna Bancshares does not pay a dividend. Cullen/Frost Bankers pays out 44.8% of its earnings in the form of a dividend. Susquehanna Bancshares has increased its dividend for 24 consecutive years.

Profitability

This table compares Cullen/Frost Bankers and Susquehanna Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cullen/Frost Bankers 28.49% 11.23% 1.11%
Susquehanna Bancshares 20.31% 5.15% 0.77%

Insider & Institutional Ownership

80.7% of Cullen/Frost Bankers shares are held by institutional investors. 5.2% of Cullen/Frost Bankers shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Cullen/Frost Bankers and Susquehanna Bancshares, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cullen/Frost Bankers 3 11 2 0 1.94
Susquehanna Bancshares 0 0 0 0 N/A

Cullen/Frost Bankers presently has a consensus target price of $94.05, suggesting a potential downside of 0.89%. Given Cullen/Frost Bankers’ higher probable upside, equities analysts clearly believe Cullen/Frost Bankers is more favorable than Susquehanna Bancshares.

Summary

Cullen/Frost Bankers beats Susquehanna Bancshares on 9 of the 11 factors compared between the two stocks.

Cullen/Frost Bankers Company Profile

Cullen/Frost Bankers, Inc. is a financial holding company and a bank holding company. The Company, through its subsidiaries, provides a range of products and services throughout Texas markets. The Company’s segments include Banking, Frost Wealth Advisors and Non-Banks. The Banking segment includes both commercial and consumer banking services, and Frost Insurance Agency. The Frost Wealth Advisors segment includes fee-based services within private trust, retirement services, and financial management services, including personal wealth management and securities brokerage services. The Non-Banks segment includes the direct and indirect ownership of its banking and non-banking subsidiaries and the issuance of debt and equity. It offers commercial and consumer banking services, as well as trust and investment management, insurance, brokerage, mutual funds, leasing, treasury management, capital markets advisory and item processing services.

Susquehanna Bancshares Company Profile

Susquehanna Bancshares, Inc. is a financial holding company. The Company conducts its business operations primarily through its commercial bank subsidiary, Susquehanna Bank, and other subsidiaries in the mid-Atlantic region to provide a range of retail and commercial banking and financial products and services. It provides a range of retail banking services, including checking, savings and club accounts, check cards, debit cards, money market accounts, certificates of deposit, individual retirement accounts, home equity lines of credit, residential mortgage loans, home improvement loans, automobile loans, personal loans, and internet and mobile banking services. It also provides a range of commercial banking services, including business checking accounts, cash management services, money market accounts, land acquisition and development loans, commercial loans, floor plan, equipment and working capital lines of credit, small business loans and internet banking services.

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