VBTX vs. PFBC, PEBO, RBCAA, BY, OBNK, STBA, OBK, QCRH, TCBK, and GABC
Should you be buying Veritex stock or one of its competitors? The main competitors of Veritex include Preferred Bank (PFBC), Peoples Bancorp (PEBO), Republic Bancorp (RBCAA), Byline Bancorp (BY), Origin Bancorp (OBNK), S&T Bancorp (STBA), Origin Bancorp (OBK), QCR (QCRH), TriCo Bancshares (TCBK), and German American Bancorp (GABC). These companies are all part of the "state commercial banks" industry.
Preferred Bank (NASDAQ:PFBC) and Veritex (NASDAQ:VBTX) are both small-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, earnings, risk, community ranking, dividends, analyst recommendations, profitability and media sentiment.
In the previous week, Veritex had 2 more articles in the media than Preferred Bank. MarketBeat recorded 7 mentions for Veritex and 5 mentions for Preferred Bank. Veritex's average media sentiment score of 1.63 beat Preferred Bank's score of 0.71 indicating that Preferred Bank is being referred to more favorably in the media.
Preferred Bank presently has a consensus target price of $67.00, indicating a potential downside of 15.96%. Veritex has a consensus target price of $24.38, indicating a potential upside of 16.57%. Given Preferred Bank's higher probable upside, analysts clearly believe Veritex is more favorable than Preferred Bank.
Preferred Bank has a net margin of 28.70% compared to Preferred Bank's net margin of 12.47%. Veritex's return on equity of 21.28% beat Preferred Bank's return on equity.
72.8% of Preferred Bank shares are owned by institutional investors. Comparatively, 88.3% of Veritex shares are owned by institutional investors. 4.6% of Veritex shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Preferred Bank pays an annual dividend of $2.80 per share and has a dividend yield of 3.5%. Veritex pays an annual dividend of $0.80 per share and has a dividend yield of 3.8%. Preferred Bank pays out 27.0% of its earnings in the form of a dividend. Veritex pays out 46.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Preferred Bank has raised its dividend for 4 consecutive years.
Preferred Bank has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500. Comparatively, Veritex has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500.
Preferred Bank has higher earnings, but lower revenue than Veritex. Preferred Bank is trading at a lower price-to-earnings ratio than Veritex, indicating that it is currently the more affordable of the two stocks.
Preferred Bank received 97 more outperform votes than Veritex when rated by MarketBeat users. Likewise, 66.46% of users gave Preferred Bank an outperform vote while only 50.89% of users gave Veritex an outperform vote.
Summary
Preferred Bank beats Veritex on 12 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding VBTX and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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