Contrast Banner (NASDAQ:BANR) and Allegiance Bancshares (NASDAQ:ABTX)


Banner (NASDAQ:BANRGet a rating) and Allegiance Bancshares (NASDAQ: ABTXGet a rating) are both small cap finance companies, but which is the better company? We’ll compare the two companies based on valuation strength, analyst recommendations, earnings, profitability, institutional ownership, dividends and risk.

Dividends

Banner pays an annual dividend of $1.76 per share and has a dividend yield of 3.2%. Allegiance Bancshares pays an annual dividend of $0.56 per share and has a dividend yield of 1.4%. Banner pays 30.8% of its profits as a dividend. Allegiance Bancshares pays 13.9% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Banner increased its dividend for 1 consecutive year and Allegiance Bancshares increased its dividend for 2 consecutive years.

Institutional and Insider Ownership

85.0% of Banner’s shares are held by institutional investors. By comparison, 54.6% of Allegiance Bancshares’ shares are held by institutional investors. 1.5% of Banner shares are held by insiders. By comparison, 5.8% of Allegiance Bancshares shares are held by insiders. Strong institutional ownership indicates that endowments, large fund managers, and hedge funds believe a stock is poised for long-term growth.

Volatility and risk

Banner has a beta of 1.03, indicating its stock price is 3% more volatile than the S&P 500. In comparison, Allegiance Bancshares has a beta of 0.92, indicating its stock price is 8% less volatile than the S&P 500.

Profitability

This table compares the net margins, return on equity and return on assets of Banner and Allegiance Bancshares.

Net margins Return on equity return on assets
Banner 32.46% 12.47% 1.24%
Allegiance Banking Stocks 31.43% 10.42% 1.19%

Benefits and evaluation

This table compares Banner and Allegiance Bancshares revenue, earnings per share and valuation.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Banner $616.92 million 3.05 $201.05 million $5.71 9.59
Allegiance Banking Stocks $261.75 million 3.01 $81.55 million $4.02 9.63

Banner has higher revenue and profit than Allegiance Bancshares. Banner trades at a lower price-to-earnings ratio than Allegiance Bancshares, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of the current recommendations and price targets for Banner and Allegiance Banc stocks, as provided by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Banner 0 2 0 1 2.67
Allegiance Banking Stocks 0 0 0 0 N / A

Banner currently has a consensus price target of $65.33, indicating a potential upside of 19.26%. Given Banner’s likely higher upside, analysts clearly believe Banner is more favorable than Allegiance Bancshares.

Summary

Banner beats Allegiance Bancshares on 12 out of 16 factors compared between the two stocks.

About the banner (Get a rating)

Banner Corporation operates as a bank holding company for Banner Bank which provides commercial banking and financial products and services to individuals, businesses and public sector entities in the United States. It accepts various deposit instruments, including interest-bearing and non-interest-bearing checking accounts, money market deposit accounts, regular savings accounts and certificates of deposit, as well as cash management services and savings plans. pension saving. The Company also offers commercial real estate loans, including real estate loans for homeowners, investment properties and multi-family residential properties; loans for construction, land and land development; residential mortgage loans; commercial business loans; agricultural loans; and consumer and other loans, such as home equity lines of credit, car, boat and recreational vehicle loans, and loans secured by deposit accounts. In addition, it is engaged in mortgage banking business through the origination and sale of one to four family and multi-family residential loans, as well as small business administration loans. Additionally, the company provides electronic and digital banking services. As of December 31, 2021, it operated 150 branches and 18 loan origination offices located in Washington, Oregon, California, Idaho and Utah. Banner Corporation was founded in 1890 and is headquartered in Walla Walla, Washington.

About Allegiance Bancshares (Get a rating)

Allegiance Bancshares, Inc. operates as a bank holding company for Allegiance Bank which provides a range of commercial banking services primarily to small and medium-sized businesses, professionals and individuals. It accepts deposit products, including checking accounts, business accounts, money market accounts, savings accounts and other term deposits; and certificates of deposit. The Company’s loan portfolio includes commercial and industrial loans; commercial real estate loans, including multi-family residential loans; loans for commercial real estate construction and land development; residential real estate loans, such as residential mortgages for 1 to 4 families; residential construction loans; and consumer and other loans. In addition, it offers ATM services, drive-thrus and deposit facilities; mobile banking; and telephone, mail and Internet banking. In addition, the company offers safe deposit boxes, debit cards, cash management and wire transfer services, night deposit services, direct deposits, cashiers checks and letters of credit. As of December 31, 2021, it operated 27 full-service banking branches, including 26 banking offices in the Houston metro area and one office in Beaumont. The company was founded in 2007 and is based in Houston, Texas.



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