Financial Contrast: Equity Bancshares (NASDAQ:EQBK) vs. Cadence Bank (NYSE:CADE)

Cadence Bank (NYSE:CADE) and Equity Bancshares (NASDAQ:EQBK) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, earnings, profitability and valuation.

Dividends

Cadence Bank pays an annual dividend of $1.10 per share and has a dividend yield of 3.5%. Equity Bancshares pays an annual dividend of $0.60 per share and has a dividend yield of 1.5%. Cadence Bank pays out 38.6% of its earnings in the form of a dividend. Equity Bancshares pays out 15.3% 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. Cadence Bank has raised its dividend for 14 consecutive years and Equity Bancshares has raised its dividend for 3 consecutive years. Cadence Bank is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Cadence Bank and Equity Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cadence Bank	18.03%	9.87%	1.07%
Equity Bancshares	18.66%	14.64%	1.31%

Earnings & Valuation

This table compares Cadence Bank and Equity Bancshares”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cadence Bank	$921.95 million	6.26	$523.60 million	$2.85	11.11
Equity Bancshares	$225.03 million	3.17	$62.62 million	$3.93	10.37

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

Risk and Volatility

Cadence Bank has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, Equity Bancshares has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Cadence Bank and Equity Bancshares, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cadence Bank	0	4	7	0	2.64
Equity Bancshares	0	3	3	0	2.50

Cadence Bank currently has a consensus target price of $36.82, suggesting a potential upside of 16.26%. Equity Bancshares has a consensus target price of $46.60, suggesting a potential upside of 14.30%. Given Cadence Bank’s stronger consensus rating and higher possible upside, research analysts clearly believe Cadence Bank is more favorable than Equity Bancshares.

Insider & Institutional Ownership

84.6% of Cadence Bank shares are owned by institutional investors. Comparatively, 71.8% of Equity Bancshares shares are owned by institutional investors. 2.2% of Cadence Bank shares are owned by insiders. Comparatively, 6.6% of Equity Bancshares shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Cadence Bank beats Equity Bancshares on 11 of the 17 factors compared between the two stocks.

About Cadence Bank

Cadence Bank provides commercial banking and financial services. Its products and services include consumer banking, consumer loans, mortgages, home equity lines and loans, credit cards, commercial and business banking, treasury management, specialized and asset-based lending, commercial real estate, equipment financing, and correspondent banking services. The company’s products and services also comprise small business administration lending, foreign exchange, wealth management, investment and trust, financial planning, retirement plan management, and personal and business insurance services. Cadence Bank was founded in 1876 and is headquartered in Tupelo, Mississippi.

About Equity Bancshares

Equity Bancshares, Inc. operates as the bank holding company for Equity Bank that provides a range of banking, mortgage banking, and financial services to individual and corporate customers. The company accepts various demand, savings, money market, and time deposits. Its loan products include commercial and industrial, commercial real estate, commercial lines of credit, working capital, term, equipment and aircraft financing, acquisition, expansion and development, borrowing base, real estate construction, homebuilder, agricultural, government guaranteed, and other loan products. The company's loan products also comprise 1 4 family residential mortgages, agriculture, consumer, residential real estate mortgage, and agricultural real estate and production loans. It also provides debit and credit cards; insurance brokerage; trust and wealth management; online banking solutions, such as access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; mobile banking solutions comprising remote check deposits with mobile bill pay; ATMs; and treasury management, wire transfer, automated clearing house, and stop payment services. In addition, the company offers cash management deposit products, such as lockbox, remote deposit capture, positive pay, reverse positive pay, account reconciliation services, zero balance accounts, and sweep accounts, as well as banking services through telephone, mail, and personal appointments. It operates a network of branches in Arkansas, Kansas, Missouri, and Oklahoma. Equity Bancshares, Inc. was incorporated in 2002 and is headquartered in Wichita, Kansas.