Head-To-Head Comparison: Civista Bancshares (NASDAQ:CIVB) vs. 1st Source (NASDAQ:SRCE)

1st Source (NASDAQ:SRCE) and Civista Bancshares (NASDAQ:CIVB) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, risk, earnings, analyst recommendations and valuation.

Analyst Ratings

This is a breakdown of current ratings for 1st Source and Civista Bancshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
1st Source	0	3	1	1	2.60
Civista Bancshares	0	3	3	1	2.71

1st Source currently has a consensus price target of $77.00, indicating a potential upside of 4.35%. Civista Bancshares has a consensus price target of $26.60, indicating a potential upside of 6.44%. Given Civista Bancshares’ stronger consensus rating and higher probable upside, analysts clearly believe Civista Bancshares is more favorable than 1st Source.

Volatility and Risk

1st Source has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500. Comparatively, Civista Bancshares has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500.

Earnings and Valuation

This table compares 1st Source and Civista Bancshares”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
1st Source	$600.00 million	2.96	$158.28 million	$6.52	11.32
Civista Bancshares	$254.95 million	2.42	$46.21 million	$2.72	9.19

1st Source has higher revenue and earnings than Civista Bancshares. Civista Bancshares is trading at a lower price-to-earnings ratio than 1st Source, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

74.5% of 1st Source shares are owned by institutional investors. Comparatively, 52.1% of Civista Bancshares shares are owned by institutional investors. 20.2% of 1st Source shares are owned by company insiders. Comparatively, 1.6% of Civista Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

1st Source pays an annual dividend of $1.72 per share and has a dividend yield of 2.3%. Civista Bancshares pays an annual dividend of $0.72 per share and has a dividend yield of 2.9%. 1st Source pays out 26.4% of its earnings in the form of a dividend. Civista Bancshares pays out 26.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. 1st Source has increased its dividend for 38 consecutive years and Civista Bancshares has increased its dividend for 4 consecutive years.

Profitability

This table compares 1st Source and Civista Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
1st Source	26.66%	12.39%	1.77%
Civista Bancshares	19.73%	11.09%	1.27%

Summary

1st Source beats Civista Bancshares on 12 of the 17 factors compared between the two stocks.

About 1st Source

1st Source Corporation operates as the bank holding company for 1st Source Bank that provides commercial and consumer banking services, trust and wealth advisory services, and insurance products to individual and business clients. Its consumer banking services include checking and savings accounts; certificates of deposit; individual retirement accounts; online and mobile banking products; consumer loans, real estate mortgage loans, and home equity lines of credit; and financial planning, financial literacy, and other consultative services, as well as debit and credit cards. The company also offers commercial, small business, agricultural, and real estate loans for general corporate purposes, including financing for industrial and commercial properties, equipment, inventories, accounts receivables, and renewable energy and acquisition financing; and commercial leasing, treasury management, and retirement planning services. In addition, it provides trust, investment, agency, and custodial services comprising administration of estates and personal trusts, as well as management of investment accounts for individuals, employee benefit plans, and charitable foundations. Further, the company offers equipment loan and lease products for construction equipment, new and pre-owned aircraft, auto and light trucks, and medium and heavy duty trucks; and finances construction equipment, aircrafts, medium and heavy duty trucks, step vans, vocational work trucks, motor coaches, shuttle buses, funeral cars, automobiles, and other equipment. Additionally, it provides corporate and personal property, casualty, and individual and group health and life insurance products and services. 1st Source Corporation was founded in 1863 and is headquartered in South Bend, Indiana.

About Civista Bancshares

Civista Bancshares, Inc. operates as the financial holding company for Civista Bank that provides community banking services. It collects a range of customer deposits; and offers commercial and agriculture, commercial and residential real estate, farm real estate, real estate construction, consumer, and other loans, as well as letters of credit. The company also holds and manages securities portfolio; leases general equipment; and provides captive insurance products. It operates in North Central, West Central, South Western Ohio, South Eastern Indiana, and Northern Kentucky. The company was formerly known as First Citizens Banc Corp and changed its name to Civista Bancshares, Inc. in May 2015. Civista Bancshares, Inc. was founded in 1884 and is headquartered in Sandusky, Ohio.