Contrasting American Bank (OTCMKTS:AMBK) and Community Bank System (NYSE:CBU)

American Bank (OTCMKTS:AMBK) and Community Bank System (NYSE:CBU) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, risk, valuation, profitability and institutional ownership.

Profitability

This table compares American Bank and Community Bank System’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Bank	N/A	N/A	N/A
Community Bank System	16.59%	8.93%	0.94%

Volatility and Risk

American Bank has a beta of 0.06, meaning that its share price is 94% less volatile than the S&P 500. Comparatively, Community Bank System has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500.

Insider and Institutional Ownership

73.8% of Community Bank System shares are held by institutional investors. 1.8% of Community Bank System shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares American Bank and Community Bank System’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Bank	N/A	N/A	N/A	N/A	N/A
Community Bank System	$756.22 million	3.26	$131.92 million	$3.18	14.69

Community Bank System has higher revenue and earnings than American Bank.

Analyst Ratings

This is a summary of current ratings and recommmendations for American Bank and Community Bank System, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Bank	0	0	0	0	N/A
Community Bank System	1	1	2	0	2.25

Community Bank System has a consensus price target of $47.67, indicating a potential upside of 2.07%. Given Community Bank System’s higher possible upside, analysts plainly believe Community Bank System is more favorable than American Bank.

Dividends

American Bank pays an annual dividend of $0.56 per share and has a dividend yield of 3.5%. Community Bank System pays an annual dividend of $1.80 per share and has a dividend yield of 3.9%. Community Bank System pays out 56.6% of its earnings in the form of a dividend. Community Bank System has raised its dividend for 32 consecutive years. Community Bank System is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Community Bank System beats American Bank on 11 of the 12 factors compared between the two stocks.

About American Bank

American Bank Incorporated operates as the bank holding company for American Bank that provides various banking products and services to consumer, business, institutional, and governmental customers. It accepts a range of interest-bearing checking and money market accounts, savings accounts, certificates of deposit, and individual retirement accounts. The company also offers commercial, industrial, and other loans; commercial mortgage loans; commercial construction loans; residential mortgage loans; and consumer loans, including personal term loans, personal credit lines, automobile loans, home equity loans, and home equity lines of credit and loans. In addition, it provides online or mobile banking, automated teller machine, safe deposit box rental, and wire transfer services, as well as sells checks and checkbooks, and purchases investment securities. The company operates an office located in Allentown, Pennsylvania; and a loan production office in Blue Bell, Pennsylvania. The company was founded in 1997 and is based in Allentown, Pennsylvania.

About Community Bank 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.