Contrasting Community Financial System (NYSE:CBU) and AlTi Global (NASDAQ:ALTI)

Community Financial System (NYSE:CBU) and AlTi Global (NASDAQ:ALTI) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, dividends, profitability, earnings and valuation.

Volatility and Risk

Community Financial System has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Comparatively, AlTi Global has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500.

Earnings and Valuation

This table compares Community Financial System and AlTi Global”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Community Financial System	$1.01 billion	3.21	$210.46 million	$4.12	14.99
AlTi Global	$254.96 million	2.06	-$119.70 million	($1.41)	-2.47

Community Financial System has higher revenue and earnings than AlTi Global. AlTi Global 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.

Profitability

This table compares Community Financial System and AlTi Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Community Financial System	21.26%	11.24%	1.28%
AlTi Global	-41.92%	-2.22%	-1.06%

Analyst Ratings

This is a summary of recent ratings and target prices for Community Financial System and AlTi Global, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Community Financial System	0	4	1	1	2.50
AlTi Global	1	1	0	0	1.50

Community Financial System presently has a consensus price target of $69.75, indicating a potential upside of 12.94%. Given Community Financial System’s stronger consensus rating and higher probable upside, equities analysts clearly believe Community Financial System is more favorable than AlTi Global.

Insider and Institutional Ownership

73.8% of Community Financial System shares are owned by institutional investors. Comparatively, 3.6% of AlTi Global shares are owned by institutional investors. 1.2% of Community Financial System shares are owned by company insiders. Comparatively, 10.5% of AlTi Global shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Community Financial System beats AlTi Global on 14 of the 15 factors compared between the two stocks.

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.

About AlTi Global

AlTi Global, Inc. provides wealth and asset management services individuals, families, foundations, and institutions in the United States, the United Kingdom, and internationally. It operates through two segments, Wealth Management and Strategic Alternatives. The company offers discretionary investment management, non-discretionary investment advisory, and investment management and advisory services. It also provides trust and administration services, such as entity formation and management; creating or modifying trust instruments and administrative practices to meet beneficiary needs; corporate, trustee-executor, and fiduciary services; provision of directors and company secretarial services; administering entity ownership of intellectual property rights; advisory and administration services in connection with investments in marine and aviation assets; and administering entity ownership of fine art and collectibles. In addition, the company offers family office services comprising bookkeeping and back office services, private foundation management and grant making, oversight of trust administration, financial tracking and reporting, cash flow management and bill pay, and other financial services, as well as clients estate and wealth planning, family governance and education, and philanthropic and strategic services. It also provides ancillary fund management services, including investments, financial planning and strategy, sales and marketing, and back and middle office infrastructure and administration. The company offers strategic advisory, corporate advisory, brokerage, and placement agency services; structures, arranges, and provides investors with co-investment opportunities in various alternative assets; manages and advises public and private investment funds, as well as alternatives platform. The company was formerly known as Alvarium Tiedemann Holdings, Inc. and changed its name to AlTi Global, Inc. in April 2023. The company is based in New York, New York.