Critical Contrast: Banc of California (BANC) and The Competition
Banc of California (NYSE: BANC) is one of 313 publicly-traded companies in the “Banks” industry, but how does it compare to its competitors? We will compare Banc of California to related companies based on the strength of its risk, earnings, valuation, profitability, dividends, analyst recommendations and institutional ownership.
Banc of California pays an annual dividend of $0.52 per share and has a dividend yield of 2.6%. Banc of California pays out 82.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Banks” companies pay a dividend yield of 1.9% and pay out 36.4% of their earnings in the form of a dividend.
Banc of California has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, Banc of California’s competitors have a beta of 0.79, meaning that their average stock price is 21% less volatile than the S&P 500.
Institutional and Insider Ownership
52.0% of shares of all “Banks” companies are owned by institutional investors. 16.9% of Banc of California shares are owned by insiders. Comparatively, 10.4% of shares of all “Banks” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares Banc of California and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Banc of California||13.28%||9.93%||0.70%|
|Banc of California Competitors||17.81%||8.37%||0.94%|
This is a breakdown of recent ratings and price targets for Banc of California and its competitors, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Banc of California||1||1||3||0||2.40|
|Banc of California Competitors||2462||8927||8920||373||2.35|
Banc of California presently has a consensus target price of $23.33, suggesting a potential upside of 18.44%. As a group, “Banks” companies have a potential downside of 4.59%. Given Banc of California’s stronger consensus rating and higher possible upside, analysts plainly believe Banc of California is more favorable than its competitors.
Valuation & Earnings
This table compares Banc of California and its competitors gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Banc of California||$501.02 million||$57.70 million||31.27|
|Banc of California Competitors||$5.61 billion||$755.73 million||400.85|
Banc of California’s competitors have higher revenue and earnings than Banc of California. Banc of California 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.
Banc of California competitors beat Banc of California on 8 of the 15 factors compared.
Banc of California Company Profile
Banc of California, Inc. is a financial holding company. The Company is the parent of Banc of California, National Association (the Bank). The Company operates through Commercial Banking; Mortgage Banking, and Corporate/Other segments. As of December 31, 2016, the Bank had 90 California banking locations, including 39 full service branches in San Diego, Orange, Santa Barbara, and Los Angeles Counties. The Bank offers automated bill payment, cash and treasury management, master demand accounts, foreign exchange, interest rate swaps, trust services, card payment services, remote and mobile deposit capture, automatic clearing house (ACH) origination, wire transfer, direct deposit, and safe deposit boxes. Bank customers also have the ability to access their accounts through a nationwide network of automated teller machines (ATMs), online, telephone and mobile banking. The Bank’s lending activities are focused on providing financing to private businesses, entrepreneurs and homeowners.
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