Critical Review: S & T Bancorp (STBA) vs. The Competition
S & T Bancorp (NASDAQ: STBA) is one of 201 publicly-traded companies in the “Commercial Banks” industry, but how does it contrast to its rivals? We will compare S & T Bancorp to related businesses based on the strength of its risk, dividends, analyst recommendations, profitability, valuation, earnings and institutional ownership.
This table compares S & T Bancorp and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|S & T Bancorp||23.08%||9.88%||1.22%|
|S & T Bancorp Competitors||19.52%||8.75%||0.94%|
S & T Bancorp has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500. Comparatively, S & T Bancorp’s rivals have a beta of 0.74, indicating that their average stock price is 26% less volatile than the S&P 500.
Valuation and Earnings
This table compares S & T Bancorp and its rivals top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|S & T Bancorp||$316.10 million||$72.96 million||19.43|
|S & T Bancorp Competitors||$376.95 million||$85.75 million||22.88|
S & T Bancorp’s rivals have higher revenue and earnings than S & T Bancorp. S & T Bancorp is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
S & T Bancorp pays an annual dividend of $0.88 per share and has a dividend yield of 2.2%. S & T Bancorp pays out 42.1% of its earnings in the form of a dividend. As a group, “Commercial Banks” companies pay a dividend yield of 1.8% and pay out 36.5% of their earnings in the form of a dividend.
This is a breakdown of recent ratings and target prices for S & T Bancorp and its rivals, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|S & T Bancorp||0||3||0||0||2.00|
|S & T Bancorp Competitors||538||3148||2539||88||2.34|
S & T Bancorp currently has a consensus target price of $41.75, suggesting a potential upside of 2.83%. As a group, “Commercial Banks” companies have a potential upside of 4.72%. Given S & T Bancorp’s rivals stronger consensus rating and higher possible upside, analysts plainly believe S & T Bancorp has less favorable growth aspects than its rivals.
Institutional and Insider Ownership
55.2% of S & T Bancorp shares are owned by institutional investors. Comparatively, 46.8% of shares of all “Commercial Banks” companies are owned by institutional investors. 2.7% of S & T Bancorp shares are owned by insiders. Comparatively, 11.8% of shares of all “Commercial Banks” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
S & T Bancorp rivals beat S & T Bancorp on 9 of the 15 factors compared.
S & T Bancorp Company Profile
S&T Bancorp, Inc. (S&T) is a bank holding company. The Company operates through three segments: Community Banking, Wealth Management and Insurance. The Community Banking segment offers services, which include accepting time and demand deposits, and originating commercial and consumer loans. The Wealth Management segment offers brokerage services, serves as executor and trustee under wills and deeds and as guardian and custodian of employee benefits and provides other trust services. In addition, it is a registered investment advisor that manages private investment accounts for individuals and institutions. The insurance segment includes an insurance agency offering commercial property and casualty insurance, group life and health coverage, employee benefit solutions and personal insurance lines. The Company’s subsidiaries include S&T Bank, 9th Street Holdings, Inc. and STBA Capital Trust I.
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