Carter Bankshares (NASDAQ:CARE) and Shore Community Bank (OTCMKTS:SHRC) Critical Analysis

Carter Bankshares (NASDAQ:CARE) and Shore Community Bank (OTCMKTS:SHRC) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, risk, profitability and dividends.

Earnings and Valuation

This table compares Carter Bankshares and Shore Community Bank”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Carter Bankshares	$126.13 million	3.39	$23.19 million	$0.57	32.56
Shore Community Bank	N/A	N/A	N/A	N/A	N/A

Carter Bankshares has higher revenue and earnings than Shore Community Bank.

Profitability

This table compares Carter Bankshares and Shore Community Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Carter Bankshares	5.41%	4.09%	0.32%
Shore Community Bank	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings and target prices for Carter Bankshares and Shore Community Bank, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carter Bankshares	0	0	2	0	3.00
Shore Community Bank	0	0	0	0	N/A

Carter Bankshares presently has a consensus price target of $21.50, indicating a potential upside of 15.84%. Given Carter Bankshares’ higher probable upside, equities analysts plainly believe Carter Bankshares is more favorable than Shore Community Bank.

Insider and Institutional Ownership

41.5% of Carter Bankshares shares are held by institutional investors. 1.9% of Carter Bankshares shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Carter Bankshares beats Shore Community Bank on 8 of the 8 factors compared between the two stocks.

About Carter Bankshares

Carter Bankshares, Inc. operates as the bank holding company for Carter Bank & Trust that provides various banking products and services in the United States. It accepts various deposit products, including checking, savings, retirement, and money market accounts, as well as certificates of deposits. The company also offers commercial loans comprising secured and unsecured loans; consumer loans, such as secured and unsecured loans for financing automobiles, home improvements, education, overdraft protection, and personal investments, as well as residential mortgages; real estate construction, acquisition, commercial, and industrial loans; home equity lines of credit; and credit cards, as well as originates and holds fixed and variable rate mortgage loans. In addition, it provides other banking services that include safe deposit boxes, direct deposit of payroll, and social security checks; online banking products, including online and mobile banking, online account opening, bill pay, e-statement, mobile deposit, digital wallet, and ATM services; title insurance and other financial institution-related products and services; and treasury and corporate cash management services. Carter Bankshares, Inc. was founded in 1974 and is headquartered in Martinsville, Virginia.

About Shore Community Bank

Shore Community Bank, a state chartered bank, provides banking products and services to businesses and individuals in Ocean County, New Jersey. The company's deposit products include checking accounts, savings accounts, certificates of deposit, individual retirement accounts, money market accounts, visa/mastercard merchant deposit accounts, and payroll/direct deposit accounts. Its loan portfolio comprises personal, home equity, term, and demand loans; lines of credit; letters of credit; commercial mortgages; and construction lending. The company also offers direct deposit and electronic transfer, wire transfer, ACH origination, night depository, tenant rent security, signature guarantee, remote deposit, notary, and automated asset management services; safe deposit boxes, escrow accounts, and debit cards, as well as online and telephone banking services. As of April 28, 2016, it operated five banking offices located in Toms River, Jackson, and Manahawkin, New Jersey. Shore Community Bank was incorporated in 1996 and is headquartered in Toms River, New Jersey.