Carter Bankshares (NASDAQ:CARE – Get Free Report) and Cullen/Frost Bankers (NYSE:CFR – Get Free Report) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.
Profitability
This table compares Carter Bankshares and Cullen/Frost Bankers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Carter Bankshares | 6.07% | 4.17% | 0.33% |
| Cullen/Frost Bankers | 18.81% | 15.82% | 1.15% |
Valuation and Earnings
This table compares Carter Bankshares and Cullen/Frost Bankers”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Carter Bankshares | $214.70 million | 2.05 | $23.19 million | $0.62 | 30.77 |
| Cullen/Frost Bankers | $2.65 billion | 3.35 | $597.97 million | $8.06 | 17.14 |
Institutional & Insider Ownership
41.5% of Carter Bankshares shares are owned by institutional investors. Comparatively, 86.9% of Cullen/Frost Bankers shares are owned by institutional investors. 1.9% of Carter Bankshares shares are owned by insiders. Comparatively, 2.9% of Cullen/Frost Bankers shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Carter Bankshares and Cullen/Frost Bankers, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Carter Bankshares | 0 | 0 | 2 | 0 | 3.00 |
| Cullen/Frost Bankers | 3 | 8 | 3 | 0 | 2.00 |
Carter Bankshares currently has a consensus target price of $21.50, indicating a potential upside of 12.68%. Cullen/Frost Bankers has a consensus target price of $125.43, indicating a potential downside of 9.22%. Given Carter Bankshares’ stronger consensus rating and higher probable upside, analysts clearly believe Carter Bankshares is more favorable than Cullen/Frost Bankers.
Volatility and Risk
Carter Bankshares has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, Cullen/Frost Bankers has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500.
Summary
Cullen/Frost Bankers beats Carter Bankshares on 10 of the 14 factors compared between the two stocks.
About Carter Bankshares
Carter Bankshares, Inc. operates as the bank holding company for Carter Bank & Trust that provides various banking products and services in the United States. It accepts various deposit products, including checking, savings, retirement, and money market accounts, as well as certificates of deposits. The company also offers commercial loans comprising secured and unsecured loans; consumer loans, such as secured and unsecured loans for financing automobiles, home improvements, education, overdraft protection, and personal investments, as well as residential mortgages; real estate construction, acquisition, commercial, and industrial loans; home equity lines of credit; and credit cards, as well as originates and holds fixed and variable rate mortgage loans. In addition, it provides other banking services that include safe deposit boxes, direct deposit of payroll, and social security checks; online banking products, including online and mobile banking, online account opening, bill pay, e-statement, mobile deposit, digital wallet, and ATM services; title insurance and other financial institution-related products and services; and treasury and corporate cash management services. Carter Bankshares, Inc. was founded in 1974 and is headquartered in Martinsville, Virginia.
About Cullen/Frost Bankers
Cullen/Frost Bankers, Inc. operates as the bank holding company for Frost Bank that provides commercial and consumer banking services in Texas. The company offers commercial banking services to corporations, including financing for industrial and commercial properties, interim construction related to industrial and commercial properties, equipment, inventories and accounts receivables, and acquisitions; and treasury management services, as well as originates commercial leasing services. It also provides consumer banking services, such as checking accounts, savings programs, automated-teller machines (ATMs), overdraft facilities, installment and real estate loans, first mortgage loans, home equity loans and lines of credit, drive-in and night deposit services, safe deposit facilities, and brokerage services. In addition, the company offers international banking services comprising deposits, loans, letters of credit, foreign collections, funds transmitting, and foreign exchange services; correspondent banking activities, including check clearing, transfer of funds, fixed income security services, and securities custody and clearance services. Further, it offers trust, investment, agency, and custodial services for individual and corporate clients; capital market services that include sales and trading, new issue underwriting, money market trading, advisory, and securities safekeeping and clearance; and support for international business activities, including foreign exchange, letters of credit, export-import financing, and other related activities. Additionally, the company offers insurance and securities brokerage services; holding of securities for investment purposes; and investment management services for mutual funds, institutions, and individuals. It serves energy, manufacturing, services, construction, retail, telecommunications, healthcare, military, and transportation industries. The company was founded in 1868 and is headquartered in San Antonio, Texas.
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