Head to Head Contrast: Citigroup (NYSE:C) and Northpointe Bancshares (NYSE:NPB)
by Tristan Rich · The Markets DailyCitigroup (NYSE:C – Get Free Report) and Northpointe Bancshares (NYSE:NPB – Get Free Report) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, risk, dividends, earnings and valuation.
Analyst Ratings
This is a summary of current ratings and target prices for Citigroup and Northpointe Bancshares, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Citigroup | 0 | 4 | 13 | 1 | 2.83 |
| Northpointe Bancshares | 2 | 1 | 2 | 0 | 2.00 |
Citigroup currently has a consensus price target of $145.22, indicating a potential upside of 9.47%. Northpointe Bancshares has a consensus price target of $21.08, indicating a potential upside of 32.32%. Given Northpointe Bancshares’ higher probable upside, analysts clearly believe Northpointe Bancshares is more favorable than Citigroup.
Risk and Volatility
Citigroup has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500. Comparatively, Northpointe Bancshares has a beta of 0.05, suggesting that its stock price is 95% less volatile than the S&P 500.
Profitability
This table compares Citigroup and Northpointe Bancshares’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Citigroup | 10.23% | 10.15% | 0.72% |
| Northpointe Bancshares | 17.72% | 14.99% | 1.25% |
Valuation & Earnings
This table compares Citigroup and Northpointe Bancshares”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Citigroup | $168.30 billion | 1.34 | $14.31 billion | $9.26 | 14.33 |
| Northpointe Bancshares | $471.18 million | 1.17 | $83.41 million | $2.31 | 6.90 |
Citigroup has higher revenue and earnings than Northpointe Bancshares. Northpointe Bancshares is trading at a lower price-to-earnings ratio than Citigroup, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
71.7% of Citigroup shares are held by institutional investors. 0.1% of Citigroup shares are held by insiders. Comparatively, 18.3% of Northpointe Bancshares shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Dividends
Citigroup pays an annual dividend of $2.68 per share and has a dividend yield of 2.0%. Northpointe Bancshares pays an annual dividend of $0.10 per share and has a dividend yield of 0.6%. Citigroup pays out 28.9% of its earnings in the form of a dividend. Northpointe Bancshares pays out 4.3% 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. Citigroup has raised its dividend for 2 consecutive years. Citigroup is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Citigroup beats Northpointe Bancshares on 12 of the 18 factors compared between the two stocks.
About Citigroup
Citigroup Inc., a diversified financial service holding company, provides various financial product and services to consumers, corporations, governments, and institutions worldwide. It operates through five segments: Services, Markets, Banking, U.S. Personal Banking, and Wealth. The Services segment includes Treasury and Trade Solutions, which provides cash management, trade, and working capital solutions to multinational corporations, financial institutions, and public sector organizations; and Securities Services, such as cross-border support for clients, local market expertise, post-trade technologies, data solutions, and various securities services solutions. The Markets segment offers sales and trading services for equities, foreign exchange, rates, spread products, and commodities to corporate, institutional, and public sector clients; and market-making services, including asset classes, risk management solutions, financing, prime brokerage, research, securities clearing, and settlement. The banking segment includes investment banking; advisory services related to mergers and acquisitions, divestitures, restructurings, and corporate defense activities; and corporate lending, which includes corporate and commercial banking. The U.S. Personal Banking segment provides co-branded cards and retail banking services. The Wealth segment provides financial services to high-net-worth clients through banking, lending, mortgages, investment, custody, and trust product offerings; and to professional industries, including law firms, consulting groups, accounting, and asset management. The company was founded in 1812 and is headquartered in New York, New York.
About Northpointe Bancshares
Northpointe Bancshares, Inc. operates as a bank holding company. It offers a nationwide mortgage purchase program, residential mortgage loans, digital deposit banking to retail customers and custodial deposit services. The company was founded by Charles A. Williams in 1998 and is headquartered in Grand Rapids, MI.