TOWN vs. WBS, CBSH, WAL, CFR, BPOP, ZION, PNFP, WTFC, PB, and BOKF
Should you be buying TowneBank stock or one of its competitors? The main competitors of TowneBank include Webster Financial (WBS), Commerce Bancshares (CBSH), Western Alliance Bancorporation (WAL), Cullen/Frost Bankers (CFR), Popular (BPOP), Zions Bancorporation, National Association (ZION), Pinnacle Financial Partners (PNFP), Wintrust Financial (WTFC), Prosperity Bancshares (PB), and BOK Financial (BOKF). These companies are all part of the "regional banks" industry.
Webster Financial (NYSE:WBS) and TowneBank (NASDAQ:TOWN) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, community ranking, valuation, institutional ownership, dividends, media sentiment, profitability, earnings and risk.
Webster Financial pays an annual dividend of $1.60 per share and has a dividend yield of 3.6%. TowneBank pays an annual dividend of $1.00 per share and has a dividend yield of 3.7%. Webster Financial pays out 32.8% of its earnings in the form of a dividend. TowneBank pays out 49.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. TowneBank has increased its dividend for 12 consecutive years. TowneBank is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Webster Financial has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500. Comparatively, TowneBank has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500.
85.6% of Webster Financial shares are owned by institutional investors. Comparatively, 56.0% of TowneBank shares are owned by institutional investors. 0.9% of Webster Financial shares are owned by insiders. Comparatively, 8.1% of TowneBank shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
In the previous week, TowneBank had 2 more articles in the media than Webster Financial. MarketBeat recorded 4 mentions for TowneBank and 2 mentions for Webster Financial. TowneBank's average media sentiment score of 1.75 beat Webster Financial's score of 0.77 indicating that Webster Financial is being referred to more favorably in the media.
Webster Financial has a net margin of 21.09% compared to Webster Financial's net margin of 15.50%. TowneBank's return on equity of 12.55% beat Webster Financial's return on equity.
Webster Financial has higher revenue and earnings than TowneBank. Webster Financial is trading at a lower price-to-earnings ratio than TowneBank, indicating that it is currently the more affordable of the two stocks.
Webster Financial received 317 more outperform votes than TowneBank when rated by MarketBeat users. Likewise, 58.92% of users gave Webster Financial an outperform vote while only 55.41% of users gave TowneBank an outperform vote.
Webster Financial currently has a consensus price target of $57.00, suggesting a potential upside of 28.90%. TowneBank has a consensus price target of $29.50, suggesting a potential upside of 8.50%. Given TowneBank's stronger consensus rating and higher possible upside, equities research analysts clearly believe Webster Financial is more favorable than TowneBank.
Summary
Webster Financial beats TowneBank on 15 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding TOWN and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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