Critical Review: Community Financial System (NYSE:CBU) and Cannabis Wheaton Income (OTCMKTS:CBWTF)

Cannabis Wheaton Income (OTCMKTS:CBWTF) and Community Financial System (NYSE:CBU) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, valuation, earnings, institutional ownership and profitability.

Analyst Ratings

This is a summary of recent ratings for Cannabis Wheaton Income and Community Financial System, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cannabis Wheaton Income	0	0	0	0	0.00
Community Financial System	0	4	1	1	2.50

Community Financial System has a consensus price target of $69.75, indicating a potential upside of 9.84%. Given Community Financial System’s stronger consensus rating and higher possible upside, analysts clearly believe Community Financial System is more favorable than Cannabis Wheaton Income.

Risk & Volatility

Cannabis Wheaton Income has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500. Comparatively, Community Financial System has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500.

Earnings & Valuation

This table compares Cannabis Wheaton Income and Community Financial System”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cannabis Wheaton Income	$108.41 million	1.44	$29.96 million	$0.02	5.45
Community Financial System	$1.01 billion	3.30	$210.46 million	$4.12	15.41

Community Financial System has higher revenue and earnings than Cannabis Wheaton Income. Cannabis Wheaton Income is trading at a lower price-to-earnings ratio than Community Financial System, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

73.8% of Community Financial System shares are owned by institutional investors. 4.6% of Cannabis Wheaton Income shares are owned by insiders. Comparatively, 1.2% of Community Financial System shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Cannabis Wheaton Income and Community Financial System’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cannabis Wheaton Income	20.99%	20.55%	12.42%
Community Financial System	21.26%	11.24%	1.28%

Summary

Community Financial System beats Cannabis Wheaton Income on 11 of the 15 factors compared between the two stocks.

About Cannabis Wheaton Income

Auxly Cannabis Group Inc. operates as a consumer packaged goods company in the cannabis products market in Canada. It focuses on developing, manufacturing, and distributing cannabis products for wellness and recreational consumers. The company offers cannabis products under various forms, including vape catridges, infused pre-rolls, pre-rolled, vape pens, milled and dried flower, concentrates, chocolates, soft chews, oil drops, capsules, and topicals under the KOLAB PROJECT, Dosecann, BACK FORTY, Foray, and Parcel brand names. It sells its products through supply arrangements with provincial control boards and distributors, medical cannabis sales channels, and retailers, as well as to authorized wholesalers. The company was formerly known as Cannabis Wheaton Income Corp. and changed its name to Auxly Cannabis Group Inc. in June 2018. The company was incorporated in 1987 and is headquartered in Toronto, Canada.

About Community Financial System

Community Bank System, Inc. operates as the bank holding company for Community Bank, N.A. that provides various banking and other financial services to retail, commercial, institutional, and municipal customers. It operates through three segments: Banking, Employee Benefit Services, and All Other. The company offers various deposits products, such as interest and noninterest -bearing checking, savings, and money market deposit accounts, as well as time deposits. It also provides loans, including consumer mortgages; general purpose commercial and industrial loans, and mortgages on commercial properties; paycheck protection program loans; installment loans that are originated through selected dealerships and are secured by automobiles, marine, and other recreational vehicles; personal installment loans and check credit lines of credit for consumers; and home equity products. In addition, the company offers broker-dealer and investment advisory; cash management, investment, and treasury services; asset management services; and employee benefit services, as well as operates as a full-service insurance agency that provides personal and commercial lines of insurance, and other risk management products and services. Further, it offers contribution plan administration, employee benefit trust, collective investment fund, retirement plan administration and benefit consulting, fund administration, transfer agency, actuarial and benefit consulting, and health and welfare consulting services; and act as an investor in residential and commercial real estate activities. Additionally, the company offers wealth management, retirement planning, higher educational planning, fiduciary, risk management, trust, and personal financial planning services; and investment alternatives, including stocks, bonds, mutual funds, and insurance and advisory products, as well as master recordkeeping services. Community Bank System, Inc. was founded in 1866 and is headquartered in DeWitt, New York.