Financial Analysis: Omni Financial Services (OTCMKTS:OFSI) and Community Trust Bancorp (NASDAQ:CTBI)

Omni Financial Services (OTCMKTS:OFSI) and Community Trust Bancorp (NASDAQ:CTBI) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Profitability

This table compares Omni Financial Services and Community Trust Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Omni Financial Services	N/A	N/A	N/A
Community Trust Bancorp	24.85%	12.27%	1.56%

Analyst Ratings

This is a summary of current ratings and target prices for Omni Financial Services and Community Trust Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omni Financial Services	0	0	0	0	0.00
Community Trust Bancorp	0	0	2	2	3.50

Community Trust Bancorp has a consensus price target of $63.50, indicating a potential downside of 5.63%. Given Omni Financial Services’ higher possible upside, equities analysts clearly believe Omni Financial Services is more favorable than Community Trust Bancorp.

Valuation and Earnings

This table compares Omni Financial Services and Community Trust Bancorp”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omni Financial Services	N/A	N/A	N/A	N/A	N/A
Community Trust Bancorp	$409.34 million	2.99	$98.06 million	$5.71	11.78

Community Trust Bancorp has higher revenue and earnings than Omni Financial Services.

Institutional & Insider Ownership

60.2% of Community Trust Bancorp shares are held by institutional investors. 2.6% of Community Trust Bancorp shares are held 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.

Volatility and Risk

Omni Financial Services has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500. Comparatively, Community Trust Bancorp has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500.

Summary

Community Trust Bancorp beats Omni Financial Services on 9 of the 11 factors compared between the two stocks.

About Omni Financial Services

OMNI Financial Services, Inc. provides various financial products and services to individuals, professionals, and business owners. The company offers deferred annuities, fixed annuities, and immediate annuities; and group medical, key employee, survivor life, disability, fixed life, long term care, and term life insurance products. It also provides college funding, retirement, and estate planning services. The company was founded in 1976 and is headquartered in Fort Myers, Florida.

About Community Trust Bancorp

Community Trust Bancorp, Inc. operates as the bank holding company for Community Trust Bank, Inc. that engages in the provision of commercial and personal banking, and trust and wealth management services to small and mid-sized communities in eastern, northeastern, central, and south-central Kentucky, as well as southern West Virginia, and northeastern Tennessee. The company accepts time and demand deposits, checking accounts, savings accounts and savings certificates, individual retirement accounts and Keogh plans, and money market accounts. Its loan portfolio includes commercial, construction, mortgage, and personal loans; lease-financing, lines of credit, revolving lines of credit, and term loans, as well as other specialized loans, including asset-based financing; residential and commercial real estate loans; and consumer loans. The company also provides cash management, renting safe deposit boxes, and funds transfer services; issues letters of credit; and acts as a trustee of personal trusts, executor of estates, trustee for employee benefit trusts, and paying agent for bond and stock issues, as well as an investment agent and depositor for securities. In addition, it offers securities brokerage services; debit cards; annuity and life insurance products; and repurchase agreements, as well as mobile, internet banking, and e-statement services. The company was founded in 1903 and is headquartered in Pikeville, Kentucky.