Eastern Bankshares (EBC) & The Competition Head-To-Head Contrast

Eastern Bankshares (NASDAQ:EBC) is one of 920 publicly-traded companies in the “Banks” industry, but how does it compare to its competitors? We will compare Eastern Bankshares to related companies based on the strength of its earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.

Profitability

This table compares Eastern Bankshares and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eastern Bankshares	24.04%	9.37%	1.29%
Eastern Bankshares Competitors	15.72%	9.53%	0.93%

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Eastern Bankshares	$1.19 billion	$88.22 million	13.25
Eastern Bankshares Competitors	$222.02 billion	$2.41 billion	16.79

Eastern Bankshares’ competitors have higher revenue and earnings than Eastern Bankshares. Eastern Bankshares 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.

Institutional and Insider Ownership

71.7% of Eastern Bankshares shares are owned by institutional investors. Comparatively, 47.8% of shares of all “Banks” companies are owned by institutional investors. 1.3% of Eastern Bankshares shares are owned by insiders. Comparatively, 9.8% of shares of all “Banks” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Eastern Bankshares pays an annual dividend of $0.60 per share and has a dividend yield of 2.6%. Eastern Bankshares pays out 34.5% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.4% and pay out 28.9% of their earnings in the form of a dividend. Eastern Bankshares has increased its dividend for 5 consecutive years. Eastern Bankshares lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Ratings

This is a summary of current ratings and price targets for Eastern Bankshares and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eastern Bankshares	0	3	6	0	2.67
Eastern Bankshares Competitors	7463	30184	27745	1456	2.35

Eastern Bankshares presently has a consensus price target of $25.14, suggesting a potential upside of 9.06%. As a group, “Banks” companies have a potential upside of 16.00%. Given Eastern Bankshares’ competitors higher possible upside, analysts plainly believe Eastern Bankshares has less favorable growth aspects than its competitors.

Volatility & Risk

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

Summary

Eastern Bankshares competitors beat Eastern Bankshares on 9 of the 15 factors compared.

About Eastern Bankshares

Eastern Bankshares, Inc. operates as the bank holding company for Eastern Bank that provides banking products and services primarily to retail, commercial, and small business customers. The company provides deposit accounts, interest checking accounts, money market accounts, savings accounts, and time certificates of deposit accounts. It also offers commercial and industrial, commercial real estate and construction, small business, residential real estate, and home equity loans; lines of credit; and other consumer loans comprising unsecured personal lines of credit, overdraft protection, automobile loans, home improvement loans, airplane loans, and other personal loans. In addition, the company provides trust, financial planning and portfolio management, automated lock box collection, cash management, and account reconciliation services; personal, business, and employee benefits insurance products. Eastern Bankshares, Inc. was founded in 1818 and is headquartered in Boston, Massachusetts.