Analyzing Sterling Bancorp (SBT) and The Competition

Sterling Bancorp (NASDAQ: SBT) is one of 93 publicly-traded companies in the “Federal savings institutions” industry, but how does it contrast to its competitors? We will compare Sterling Bancorp to similar businesses based on the strength of its valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.

Analyst Recommendations

This is a summary of recent ratings and price targets for Sterling Bancorp and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sterling Bancorp 0 0 2 0 3.00
Sterling Bancorp Competitors 513 1409 1217 86 2.27

Sterling Bancorp currently has a consensus target price of $13.50, indicating a potential upside of 38.60%. As a group, “Federal savings institutions” companies have a potential upside of 17.16%. Given Sterling Bancorp’s stronger consensus rating and higher possible upside, analysts clearly believe Sterling Bancorp is more favorable than its competitors.

Profitability

This table compares Sterling Bancorp and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sterling Bancorp 34.53% 20.36% 2.02%
Sterling Bancorp Competitors 17.28% 8.59% 0.90%

Earnings and Valuation

This table compares Sterling Bancorp and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Sterling Bancorp $183.81 million $63.47 million 8.12
Sterling Bancorp Competitors $903.88 million $212.26 million 15.57

Sterling Bancorp’s competitors have higher revenue and earnings than Sterling Bancorp. Sterling Bancorp is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Dividends

Sterling Bancorp pays an annual dividend of $0.04 per share and has a dividend yield of 0.4%. Sterling Bancorp pays out 3.3% of its earnings in the form of a dividend. As a group, “Federal savings institutions” companies pay a dividend yield of 2.6% and pay out 35.7% of their earnings in the form of a dividend.

Institutional & Insider Ownership

31.3% of Sterling Bancorp shares are held by institutional investors. Comparatively, 40.2% of shares of all “Federal savings institutions” companies are held by institutional investors. 3.0% of Sterling Bancorp shares are held by insiders. Comparatively, 9.6% of shares of all “Federal savings institutions” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Sterling Bancorp has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500. Comparatively, Sterling Bancorp’s competitors have a beta of 0.51, suggesting that their average stock price is 49% less volatile than the S&P 500.

Summary

Sterling Bancorp beats its competitors on 8 of the 15 factors compared.

About Sterling Bancorp

Sterling Bancorp, Inc. is a unitary thrift holding company. Its wholly owned subsidiary, Sterling Bank and Trust, F.S.B., has primary branch operations in San Francisco and Los Angeles, California and New York City, and a loan production office in Seattle, Washington. Sterling offers a broad range of loan products to the residential and commercial markets, as well as retail and business banking services. Sterling also has an operations center and a branch in Southfield, Michigan. Sterling was named as the top performing community bank in the United States with total assets between $1 billion and $10 billion in 2017 by SNL/S&P Global Market Intelligence.

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