International Bancshares (IBOC) & Its Rivals Critical Analysis

International Bancshares (TXSE:IBOC) is one of 919 publicly-traded companies in the “Banks” industry, but how does it compare to its competitors? We will compare International Bancshares to related businesses based on the strength of its earnings, risk, analyst recommendations, profitability, dividends, institutional ownership and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
International Bancshares	38.83%	12.67%	2.47%
International Bancshares Competitors	15.65%	9.43%	0.93%

Institutional & Insider Ownership

65.9% of International Bancshares shares are held by institutional investors. Comparatively, 47.8% of shares of all “Banks” companies are held by institutional investors. 13.1% of International 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, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings for International Bancshares and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
International Bancshares	0	0	1	0	3.00
International Bancshares Competitors	7490	30232	27818	1480	2.35

International Bancshares presently has a consensus target price of $85.00, indicating a potential upside of 24.18%. As a group, “Banks” companies have a potential upside of 14.21%. Given International Bancshares’ stronger consensus rating and higher probable upside, research analysts plainly believe International Bancshares is more favorable than its competitors.

Dividends

International Bancshares pays an annual dividend of $1.46 per share and has a dividend yield of 2.1%. International Bancshares pays out 21.7% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 8.9% and pay out 28.9% of their earnings in the form of a dividend. International Bancshares has raised its dividend for 16 consecutive years.

Earnings & Valuation

This table compares International Bancshares and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
International Bancshares	$859.07 million	$412.29 million	10.17
International Bancshares Competitors	$9.95 billion	$2.42 billion	21.49

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

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

Summary

International Bancshares beats its competitors on 10 of the 15 factors compared.

About International Bancshares

International Bancshares Corporation, a financial holding company, provides commercial and retail banking services in Texas and the State of Oklahoma. It accepts checking and saving deposits; and offers commercial, real estate, personal, home improvement, automobile, and other installment and term loans. The company also provides international banking services, including letters of credit, commercial and industrial loans, and foreign exchange services. In addition, it offers other banking related services, such as credit cards, safety deposit boxes, collection, notary public, escrow, drive up and walk up facilities, and other customary banking services; and Internet banking services, as well as securities products through third party providers. The company was founded in 1966 and is headquartered in Laredo, Texas.