Critical Analysis: BEO Bancorp (BEOB) versus Its Rivals

Insider and Institutional Ownership

59.7% of shares of all “BANKS – WEST” companies are owned by institutional investors. 10.3% of shares of all “BANKS – WEST” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

BEO Bancorp pays an annual dividend of $2.00 per share and has a dividend yield of 1.8%. BEO Bancorp pays out 15.2% of its earnings in the form of a dividend. As a group, “BANKS – WEST” companies pay a dividend yield of 1.7% and pay out 24.9% of their earnings in the form of a dividend. BEO Bancorp is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Volatility & Risk

BEO Bancorp has a beta of 0.23, meaning that its stock price is 77% less volatile than the S&P 500. Comparatively, BEO Bancorp’s competitors have a beta of 0.65, meaning that their average stock price is 35% less volatile than the S&P 500.

Profitability

This table compares BEO Bancorp and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BEO Bancorp	N/A	N/A	N/A
BEO Bancorp Competitors	18.92%	10.77%	1.13%

Earnings and Valuation

This table compares BEO Bancorp and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
BEO Bancorp	$57.76 million	$16.19 million	8.33
BEO Bancorp Competitors	$932.77 million	$184.07 million	11.84

BEO Bancorp’s competitors have higher revenue and earnings than BEO Bancorp. BEO Bancorp 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.

Summary

BEO Bancorp competitors beat BEO Bancorp on 9 of the 11 factors compared.

BEO Bancorp Company Profile

BEO Bancorp operates as the bank holding company for Bank of Eastern Oregon that provides commercial and consumer financing, banking and mortgage lending, and other services in Northeastern Oregon and Southeastern Washington. The company offers checking, money market, time deposits, and savings accounts; and certificates of deposit. It also provides commercial, agricultural, real estate, installment, credit card, mortgage, term, home, construction, farm, and refinancing loans; lines of credit; home enhancement loan programs; Internet banking and bill payment services; business sweep and banking services; and automated teller machines and safe deposit facilities, as well as originates and sells mortgage loans into the secondary market. The company was founded in 1945 and is based in Heppner, Oregon.