Comparing S&T Bancorp (STBA) and The Competition

S&T Bancorp (NASDAQ:STBA) is one of 920 public companies in the “Banks” industry, but how does it compare to its competitors? We will compare S&T Bancorp to related businesses based on the strength of its valuation, dividends, earnings, risk, analyst recommendations, institutional ownership and profitability.

Risk and Volatility

S&T Bancorp has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500. Comparatively, S&T Bancorp’s competitors have a beta of 0.60, suggesting that their average stock price is 40% less volatile than the S&P 500.

Earnings & Valuation

This table compares S&T Bancorp and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
S&T Bancorp	$568.51 million	$134.23 million	12.83
S&T Bancorp Competitors	$50.45 billion	$2.41 billion	18.89

S&T Bancorp’s competitors have higher revenue and earnings than S&T Bancorp. S&T 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.

Institutional and Insider Ownership

65.2% of S&T Bancorp shares are owned by institutional investors. Comparatively, 47.9% of shares of all “Banks” companies are owned by institutional investors. 1.2% of S&T Bancorp shares are owned by company insiders. Comparatively, 9.8% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for S&T Bancorp and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
S&T Bancorp	0	6	2	0	2.25
S&T Bancorp Competitors	7455	30155	27701	1450	2.35

S&T Bancorp currently has a consensus price target of $52.20, indicating a potential upside of 3.26%. As a group, “Banks” companies have a potential upside of 17.35%. Given S&T Bancorp’s competitors stronger consensus rating and higher probable upside, analysts plainly believe S&T Bancorp has less favorable growth aspects than its competitors.

Dividends

S&T Bancorp pays an annual dividend of $1.48 per share and has a dividend yield of 2.9%. S&T Bancorp pays out 37.6% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.5% and pay out 28.9% of their earnings in the form of a dividend. S&T Bancorp has increased its dividend for 13 consecutive years. S&T Bancorp lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares S&T Bancorp and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
S&T Bancorp	25.10%	10.11%	1.46%
S&T Bancorp Competitors	15.38%	9.45%	0.93%

Summary

S&T Bancorp competitors beat S&T Bancorp on 10 of the 15 factors compared.

S&T Bancorp Company Profile

S&T Bancorp, Inc. is a bank holding company, which engages in the provision of consumer, commercial, and small business banking services. It operates through the following segments: Commercial Real Estate, Commercial and Industrial, Commercial Construction, Business Banking, Consumer Real Estate, and Other Consumer. The Commercial Real Estate segment includes both owner-occupied properties and investment properties for various purposes such as hotels, retail, multifamily and health care. The Commercial and Industrial segment focuses on the companies or manufacturers for the purpose of production, operating capacity, accounts receivable, inventory or equipment financing. The Commercial Construction segment refers to the finance construction of buildings or other structures, as well as to finance the acquisition and development of raw land for various purposes. The Business Banking segment is made to small businesses that are standard, non-complex products evaluated through a streamlined credit approval process that has been designed to maximize efficiency while maintaining high credit quality standards. The Consumer Real Estate segment offers first and second liens such as 1-4 family residential mortgages, home equity loans and home equity lines of credit. The Other Consumer segment consists of individuals that may be secured by assets other than 1-4 family residences, as well as unsecured loans. The company was founded on March 17, 1983 and is headquartered in Indiana, PA.