Kentucky Bancshares (OTCMKTS:KTYB) vs. TowneBank (NASDAQ:TOWN) Head-To-Head Comparison

Kentucky Bancshares (OTCMKTS:KTYB) and TowneBank (NASDAQ:TOWN) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Institutional and Insider Ownership

56.0% of TowneBank shares are held by institutional investors. 15.0% of Kentucky Bancshares shares are held by insiders. Comparatively, 8.1% of TowneBank shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Kentucky Bancshares and TowneBank”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kentucky Bancshares	N/A	N/A	N/A	N/A	N/A
TowneBank	$941.58 million	2.92	$153.71 million	$1.99	18.41

TowneBank has higher revenue and earnings than Kentucky Bancshares.

Profitability

This table compares Kentucky Bancshares and TowneBank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kentucky Bancshares	N/A	N/A	N/A
TowneBank	14.89%	7.32%	0.90%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Kentucky Bancshares and TowneBank, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kentucky Bancshares	0	0	0	0	0.00
TowneBank	0	0	2	0	3.00

TowneBank has a consensus price target of $36.00, suggesting a potential downside of 1.72%. Given TowneBank’s stronger consensus rating and higher probable upside, analysts clearly believe TowneBank is more favorable than Kentucky Bancshares.

Summary

TowneBank beats Kentucky Bancshares on 8 of the 9 factors compared between the two stocks.

About Kentucky Bancshares

Kentucky Bancshares, Inc. operates as the bank holding company for Kentucky Bank that provides commercial and consumer banking products and services. It accepts various deposit products, including checking, savings, and money market accounts; and certificates of deposit, safe deposits, interest and noninterest bearing deposits, and time deposits. The company also offers commercial, agricultural, and real estate loans to small-to-medium-sized industrial, service, and agricultural businesses; and residential mortgages, installments, and other loans to individual and other non-commercial customers. In addition, it provides credit cards and other consumer-oriented financial services; brokerage services, annuities, life and long-term care insurance, personal trust, and agency services; and Internet banking services, such as bill payment. The company has operations in Bourbon, Clark, Elliott, Fayette, Harrison, Jessamine, Madison, Rowan, Scott, Woodford, and other counties in Kentucky. Kentucky Bancshares, Inc. was founded in 1851 and is headquartered in Paris, Kentucky.

About TowneBank

TowneBank provides retail and commercial banking services for individuals, commercial enterprises, and professionals. The company operates through three segments: Banking, Realty, and Insurance. It accepts various deposits, including demand deposits, savings accounts, money rate savings, certificates of deposit, and individual retirement accounts. The company also offers secured and unsecured personal loans for financing automobiles, home improvements, education, and personal investments; commercial loans for working capital, business expansion, and equipment and machinery purchases; and mortgage loans, as well as real estate acquisition, development, and construction loans. In addition, it provides other services, such as safe deposit boxes, treasury management services, direct deposit of payroll and social security checks, and automatic drafts for various accounts, as well as online, mobile, and on-call banking services. Further, the company offers documentation services to accomplish tax deferral to investors; investment and asset management services; commercial mortgage brokerage services; and other financial services, such as financial, retirement, and estate planning services, as well as assistance on various investment options comprising alternative investments, annuities, margin accounts, convertible bonds, and pension and profit-sharing plans. Additionally, it provides residential real estate, relocation, property management, vacation rentals, and title and settlement services; and originates residential mortgage loans. The company also offers life, property, casualty, and vehicle insurance services; and employee benefit programs, such as health, dental, vision, and disability insurance. It operates in Richmond, Virginia, the Greater Hampton Roads region in southeastern Virginia, northeastern North Carolina, Raleigh, Charlotte, Greensboro, and Greenville, North Carolina. TowneBank was incorporated in 1998 and is based in Portsmouth, Virginia.