Head to Head Comparison: Prosperity Bancshares (PB) versus The Competition

Prosperity Bancshares (NYSE:PB) is one of 919 public companies in the “Banks” industry, but how does it contrast to its competitors? We will compare Prosperity Bancshares to related businesses based on the strength of its dividends, analyst recommendations, valuation, institutional ownership, earnings, risk and profitability.

Profitability

This table compares Prosperity Bancshares and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Prosperity Bancshares	26.99%	7.68%	1.45%
Prosperity Bancshares Competitors	15.65%	9.44%	0.93%

Analyst Recommendations

This is a summary of current ratings and price targets for Prosperity Bancshares and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Prosperity Bancshares	2	6	7	1	2.44
Prosperity Bancshares Competitors	7483	30220	27803	1478	2.35

Prosperity Bancshares presently has a consensus price target of $78.36, suggesting a potential upside of 8.93%. As a group, “Banks” companies have a potential upside of 16.49%. Given Prosperity Bancshares’ competitors higher probable upside, analysts plainly believe Prosperity Bancshares has less favorable growth aspects than its competitors.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Prosperity Bancshares	$1.50 billion	$542.84 million	13.08
Prosperity Bancshares Competitors	$63.01 billion	$2.42 billion	21.06

Prosperity Bancshares’ competitors have higher revenue and earnings than Prosperity Bancshares. Prosperity Bancshares 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.

Risk & Volatility

Prosperity Bancshares has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500. Comparatively, Prosperity Bancshares’ competitors have a beta of 0.61, indicating that their average share price is 39% less volatile than the S&P 500.

Insider and Institutional Ownership

80.7% of Prosperity Bancshares shares are held by institutional investors. Comparatively, 47.9% of shares of all “Banks” companies are held by institutional investors. 4.0% of Prosperity Bancshares shares are held by company insiders. Comparatively, 9.7% of shares of all “Banks” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

Prosperity Bancshares pays an annual dividend of $2.56 per share and has a dividend yield of 3.6%. Prosperity Bancshares pays out 46.5% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.2% and pay out 28.9% of their earnings in the form of a dividend. Prosperity Bancshares has increased its dividend for 27 consecutive years. Prosperity Bancshares lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

Prosperity Bancshares competitors beat Prosperity Bancshares on 8 of the 15 factors compared.

Prosperity Bancshares Company Profile

Prosperity Bancshares, Inc. operates as bank holding company for the Prosperity Bank that provides financial products and services to businesses and consumers. It accepts various deposit products, such as demand, savings, money market, and time accounts, as well as and certificates of deposit. The company also offers 1-4 family residential mortgage, commercial real estate and multifamily residential, commercial and industrial, agricultural, and non-real estate agricultural loans, as well as construction, land development, and other land loans; consumer loans, including automobile, recreational vehicle, boat, home improvement, personal, and deposit account collateralized loans; term loans and lines of credit; and consumer durables and home equity loans, as well as loans for working capital, business expansion, and purchase of equipment and machinery. In addition, it provides internet banking, mobile banking, trust and wealth management, retail brokerage, mortgage services, and treasury management, as well as debit and credit cards. The company was incorporated in 1983 and is headquartered in Houston, Texas.