Analyzing 1st Source (SRCE) and Its Rivals

1st Source (NASDAQ:SRCE) is one of 919 public companies in the “Banks” industry, but how does it compare to its competitors? We will compare 1st Source to similar companies based on the strength of its dividends, risk, earnings, valuation, profitability, analyst recommendations and institutional ownership.

Profitability

This table compares 1st Source and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
1st Source	28.85%	13.57%	1.97%
1st Source Competitors	15.65%	9.43%	0.93%

Analyst Recommendations

This is a breakdown of recent ratings for 1st Source and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
1st Source	0	3	1	1	2.60
1st Source Competitors	7484	30232	27813	1478	2.35

1st Source currently has a consensus target price of $91.67, suggesting a potential upside of 3.82%. As a group, “Banks” companies have a potential upside of 14.31%. Given 1st Source’s competitors higher possible upside, analysts plainly believe 1st Source has less favorable growth aspects than its competitors.

Earnings and Valuation

This table compares 1st Source and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
1st Source	$600.00 million	$158.28 million	11.91
1st Source Competitors	$9.95 billion	$2.42 billion	21.29

1st Source’s competitors have higher revenue and earnings than 1st Source. 1st Source 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.

Dividends

1st Source pays an annual dividend of $1.80 per share and has a dividend yield of 2.0%. 1st Source pays out 24.3% 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. 1st Source has raised its dividend for 38 consecutive years.

Risk and Volatility

1st Source has a beta of 0.58, meaning that its stock price is 42% less volatile than the S&P 500. Comparatively, 1st Source’s competitors have a beta of 0.61, meaning that their average stock price is 39% less volatile than the S&P 500.

Insider and Institutional Ownership

74.5% of 1st Source shares are owned by institutional investors. Comparatively, 47.8% of shares of all “Banks” companies are owned by institutional investors. 20.2% of 1st Source shares are owned by company insiders. Comparatively, 9.7% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

1st Source beats its competitors on 8 of the 15 factors compared.

1st Source Company Profile

1st Source Corporation operates as the bank holding company for 1st Source Bank that provides commercial and consumer banking services, trust and wealth advisory services, and insurance products to individual and business clients. Its consumer banking services include checking and savings accounts; certificates of deposit; individual retirement accounts; online and mobile banking products; consumer loans, real estate mortgage loans, and home equity lines of credit; and financial planning, financial literacy, and other consultative services, as well as debit and credit cards. The company also offers commercial, small business, agricultural, and real estate loans for general corporate purposes, including financing for industrial and commercial properties, equipment, inventories, accounts receivables, and renewable energy and acquisition financing; and commercial leasing, treasury management, and retirement planning services. In addition, it provides trust, investment, agency, and custodial services comprising administration of estates and personal trusts, as well as management of investment accounts for individuals, employee benefit plans, and charitable foundations. Further, the company offers equipment loan and lease products for construction equipment, new and pre-owned aircraft, auto and light trucks, and medium and heavy duty trucks; and finances construction equipment, aircrafts, medium and heavy duty trucks, step vans, vocational work trucks, motor coaches, shuttle buses, funeral cars, automobiles, and other equipment. Additionally, it provides corporate and personal property, casualty, and individual and group health and life insurance products and services. 1st Source Corporation was founded in 1863 and is headquartered in South Bend, Indiana.