Arrow Financial (NASDAQ: AROW) is one of 314 publicly-traded companies in the “Banks” industry, but how does it compare to its peers? We will compare Arrow Financial to related companies based on the strength of its profitability, valuation, institutional ownership, analyst recommendations, earnings, risk and dividends.

Profitability

This table compares Arrow Financial and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Arrow Financial 26.11% 11.75% 1.04%
Arrow Financial Competitors 17.31% 8.35% 0.94%

Earnings & Valuation

This table compares Arrow Financial and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Arrow Financial $112.30 million $29.33 million 15.12
Arrow Financial Competitors $5.58 billion $764.07 million 383.40

Arrow Financial’s peers have higher revenue and earnings than Arrow Financial. Arrow Financial 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.

Insider & Institutional Ownership

40.0% of Arrow Financial shares are owned by institutional investors. Comparatively, 51.9% of shares of all “Banks” companies are owned by institutional investors. 4.6% of Arrow Financial shares are owned by company insiders. Comparatively, 10.4% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Arrow Financial and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Arrow Financial 0 1 0 0 2.00
Arrow Financial Competitors 2514 9024 9009 378 2.35

Arrow Financial currently has a consensus target price of $37.00, suggesting a potential upside of 16.54%. As a group, “Banks” companies have a potential downside of 0.17%. Given Arrow Financial’s higher possible upside, research analysts clearly believe Arrow Financial is more favorable than its peers.

Risk and Volatility

Arrow Financial has a beta of 0.63, suggesting that its share price is 37% less volatile than the S&P 500. Comparatively, Arrow Financial’s peers have a beta of 0.77, suggesting that their average share price is 23% less volatile than the S&P 500.

Dividends

Arrow Financial pays an annual dividend of $1.00 per share and has a dividend yield of 3.1%. Arrow Financial pays out 47.6% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 2.0% and pay out 36.7% of their earnings in the form of a dividend.

Summary

Arrow Financial peers beat Arrow Financial on 10 of the 15 factors compared.

About Arrow Financial

Arrow Financial Corporation (Arrow) is a bank holding company. The Company’s banking subsidiaries are Glens Falls National Bank and Trust Company (Glens Falls National) and Saratoga National Bank and Trust Company (Saratoga National). It operates in community banking industry segment. The Company’s business consists primarily of the ownership, supervision and control of its two banks. It provides advisory and administrative services and coordinates the general policies and operation of the banks. The Company offers a range of commercial and consumer banking, and financial products. Its deposit base consists of deposits derived from the communities it serves. Through its banks’ trust operations, the Company provides retirement planning, trust and estate administration services for individuals, and pension, profit-sharing and employee benefit plan administration for corporations.

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