Analyzing International Bancshares (IBOC) & Its Peers

International Bancshares (NASDAQ:IBOC) is one of 919 publicly-traded companies in the “Banks” industry, but how does it contrast to its peers? We will compare International Bancshares to similar companies based on the strength of its risk, institutional ownership, dividends, valuation, analyst recommendations, profitability and earnings.

Insider and Institutional Ownership

65.9% of International Bancshares shares are held by institutional investors. Comparatively, 48.0% of shares of all “Banks” companies are held by institutional investors. 13.1% of International Bancshares shares are held by insiders. Comparatively, 9.8% of shares of all “Banks” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

International Bancshares has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500. Comparatively, International Bancshares’ peers have a beta of 0.61, meaning that their average share price is 39% less volatile than the S&P 500.

Dividends

International Bancshares pays an annual dividend of $1.46 per share and has a dividend yield of 2.1%. International Bancshares pays out 22.0% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.3% and pay out 28.9% of their earnings in the form of a dividend. International Bancshares has increased its dividend for 16 consecutive years.

Profitability

This table compares International Bancshares and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
International Bancshares	38.83%	12.67%	2.47%
International Bancshares Competitors	15.64%	9.43%	0.93%

Analyst Ratings

This is a breakdown of current recommendations and price targets for International Bancshares and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
International Bancshares	0	0	1	0	3.00
International Bancshares Competitors	7470	30200	27770	1466	2.35

International Bancshares presently has a consensus price target of $85.00, suggesting a potential upside of 24.59%. As a group, “Banks” companies have a potential upside of 16.38%. Given International Bancshares’ stronger consensus rating and higher probable upside, analysts clearly believe International Bancshares is more favorable than its peers.

Earnings & Valuation

This table compares International Bancshares and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
International Bancshares	$859.07 million	$412.29 million	10.29
International Bancshares Competitors	$37.85 billion	$2.42 billion	20.04

International Bancshares’ peers have higher revenue and earnings than International Bancshares. International Bancshares 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.

Summary

International Bancshares beats its peers on 10 of the 15 factors compared.

International Bancshares Company Profile

International Bancshares Corporation, a financial holding company, provides commercial and retail banking services in Texas and the State of Oklahoma. It accepts checking and saving deposits; and offers commercial, real estate, personal, home improvement, automobile, and other installment and term loans. The company also provides international banking services, including letters of credit, commercial and industrial loans, and foreign exchange services. In addition, it offers other banking related services, such as credit cards, safety deposit boxes, collection, notary public, escrow, drive up and walk up facilities, and other customary banking services; and Internet banking services, as well as securities products through third party providers. The company was founded in 1966 and is headquartered in Laredo, Texas.