Banner (BANR) and Its Rivals Head-To-Head Analysis

Banner (NASDAQ:BANR) is one of 920 public companies in the “Banks” industry, but how does it weigh in compared to its rivals? We will compare Banner to similar companies based on the strength of its risk, analyst recommendations, institutional ownership, profitability, valuation, earnings and dividends.

Institutional and Insider Ownership

87.3% of Banner shares are held by institutional investors. Comparatively, 47.7% of shares of all “Banks” companies are held by institutional investors. 1.4% of Banner shares are held by company insiders. Comparatively, 9.8% of shares of all “Banks” companies are held by company 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.

Risk and Volatility

Banner has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500. Comparatively, Banner’s rivals have a beta of 0.61, suggesting that their average share price is 39% less volatile than the S&P 500.

Dividends

Banner pays an annual dividend of $2.08 per share and has a dividend yield of 3.0%. Banner pays out 35.4% 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. Banner lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Valuation and Earnings

This table compares Banner and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Banner	$679.17 million	$195.38 million	11.77
Banner Competitors	$37.86 billion	$2.41 billion	16.69

Banner’s rivals have higher revenue and earnings than Banner. Banner 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.

Profitability

This table compares Banner and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banner	22.81%	10.44%	1.25%
Banner Competitors	15.63%	9.45%	0.93%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Banner and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banner	0	4	2	0	2.33
Banner Competitors	7458	30161	27712	1451	2.35

Banner presently has a consensus price target of $75.75, indicating a potential upside of 9.45%. As a group, “Banks” companies have a potential upside of 17.48%. Given Banner’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Banner has less favorable growth aspects than its rivals.

Summary

Banner rivals beat Banner on 10 of the 15 factors compared.

Banner Company Profile

Banner Corporation operates as the bank holding company for Banner Bank that engages in the provision of commercial banking and financial products and services to individuals, businesses, and public sector entities in the United States. It accepts various deposit instruments, including interest-bearing and non-interest-bearing checking accounts, money market deposit accounts, regular savings accounts, and certificates of deposit, as well as treasury management services and retirement savings plans. The company also provides commercial real estate loans, including owner-occupied, investment properties, and multifamily residential real estate loans; construction, land, and land development loans; one- to four-family residential real estate lending; commercial business loans; agricultural loans; consumer and other loans, such as home equity lines of credit, automobile, and boat and recreational vehicle loans, as well as loans secured by deposit accounts; and small business administration loans. In addition, it provides electronic and digital banking services comprising debit cards and ATMs, internet banking, remote deposit, and mobile banking services. The company was founded in 1890 and is based in Walla Walla, Washington.