Analyzing SVB Financial Group (SIVB) and Its Competitors
SVB Financial Group (NASDAQ: SIVB) is one of 315 public companies in the “Banks” industry, but how does it compare to its peers? We will compare SVB Financial Group to related businesses based on the strength of its analyst recommendations, profitability, earnings, risk, dividends, valuation and institutional ownership.
Volatility and Risk
SVB Financial Group has a beta of 1.62, meaning that its share price is 62% more volatile than the S&P 500. Comparatively, SVB Financial Group’s peers have a beta of 0.80, meaning that their average share price is 20% less volatile than the S&P 500.
This is a breakdown of recent recommendations and price targets for SVB Financial Group and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|SVB Financial Group||0||3||9||0||2.75|
|SVB Financial Group Competitors||2458||8991||8930||373||2.35|
SVB Financial Group currently has a consensus price target of $231.75, suggesting a potential downside of 7.40%. As a group, “Banks” companies have a potential downside of 5.42%. Given SVB Financial Group’s peers higher probable upside, analysts clearly believe SVB Financial Group has less favorable growth aspects than its peers.
Earnings and Valuation
This table compares SVB Financial Group and its peers revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|SVB Financial Group||$2.02 billion||$490.50 million||27.20|
|SVB Financial Group Competitors||$5.61 billion||$755.73 million||402.27|
SVB Financial Group’s peers have higher revenue and earnings than SVB Financial Group. SVB Financial Group is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Institutional & Insider Ownership
91.7% of SVB Financial Group shares are owned by institutional investors. Comparatively, 52.0% of shares of all “Banks” companies are owned by institutional investors. 0.7% of SVB Financial Group shares are owned by insiders. Comparatively, 10.4% of shares of all “Banks” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares SVB Financial Group and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|SVB Financial Group||24.25%||12.83%||1.07%|
|SVB Financial Group Competitors||17.79%||8.40%||0.95%|
SVB Financial Group beats its peers on 7 of the 13 factors compared.
SVB Financial Group Company Profile
SVB Financial Group is a financial services company, as well as a bank holding and a financial holding company. The Company’s segments include Global Commercial Bank, SVB Private Bank and SVB Capital. The Global Commercial Bank segment consists of the operations of its Commercial Bank, and of SVB Wine, SVB Analytics and its Debt Fund Investments. SVB Private Bank is the private banking division of the Bank, which provides a range of personal financial solutions for consumers. SVB Capital is the venture capital investment arm of SVB Financial Group, which focuses primarily on funds management. The Company, through its subsidiaries and divisions, offers a range of banking and financial products and services to clients across the United States. It offers services in the technology, life science/healthcare, private equity/venture capital and wine industries. The Bank and its subsidiaries, also offer asset management, private wealth management, brokerage and other investment services.
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