Veritex (VBTX) Competitors

Veritex (NASDAQ:VBTX) and PennyMac Financial Services (NYSE:PFSI) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, community ranking, analyst recommendations, media sentiment, risk, profitability, earnings, valuation and dividends.

Is VBTX or PFSI a better dividend stock?

Veritex pays an annual dividend of $0.80 per share and has a dividend yield of 3.1%. PennyMac Financial Services pays an annual dividend of $1.20 per share and has a dividend yield of 1.2%. Veritex pays out 41.0% of its earnings in the form of a dividend. PennyMac Financial Services pays out 20.5% 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.

Does the MarketBeat Community favor VBTX or PFSI?

PennyMac Financial Services received 160 more outperform votes than Veritex when rated by MarketBeat users. Likewise, 64.09% of users gave PennyMac Financial Services an outperform vote while only 51.18% of users gave Veritex an outperform vote.

Company	Underperform	Outperform
Veritex	Outperform Votes 238 51.18%	Underperform Votes 227 48.82%
PennyMac Financial Services	Outperform Votes 398 64.09%	Underperform Votes 223 35.91%

Is VBTX or PFSI more profitable?

PennyMac Financial Services has a net margin of 19.54% compared to Veritex's net margin of 13.44%. PennyMac Financial Services' return on equity of 16.80% beat Veritex's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Veritex	13.44%	7.59%	0.93%
PennyMac Financial Services	19.54%	16.80%	2.87%

Does the media favor VBTX or PFSI?

In the previous week, Veritex had 1 more articles in the media than PennyMac Financial Services. MarketBeat recorded 5 mentions for Veritex and 4 mentions for PennyMac Financial Services. Veritex's average media sentiment score of 1.27 beat PennyMac Financial Services' score of 0.54 indicating that Veritex is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Veritex	4 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
PennyMac Financial Services	2 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has more risk & volatility, VBTX or PFSI?

Veritex has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500. Comparatively, PennyMac Financial Services has a beta of 1.78, indicating that its share price is 78% more volatile than the S&P 500.

Do institutionals and insiders believe in VBTX or PFSI?

88.3% of Veritex shares are owned by institutional investors. Comparatively, 57.9% of PennyMac Financial Services shares are owned by institutional investors. 4.6% of Veritex shares are owned by insiders. Comparatively, 16.6% of PennyMac Financial Services shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Which has better valuation and earnings, VBTX or PFSI?

PennyMac Financial Services has higher revenue and earnings than Veritex. Veritex is trading at a lower price-to-earnings ratio than PennyMac Financial Services, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Veritex	$797.62M	1.78	$107.24M	$1.95	13.33
PennyMac Financial Services	$1.59B	3.26	$311.42M	$5.84	17.35

Do analysts rate VBTX or PFSI?

Veritex currently has a consensus price target of $31.50, suggesting a potential upside of 21.15%. PennyMac Financial Services has a consensus price target of $122.17, suggesting a potential upside of 20.55%. Given Veritex's higher probable upside, equities research analysts clearly believe Veritex is more favorable than PennyMac Financial Services.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Veritex	0 Sell rating(s)	2 Hold rating(s)	3 Buy rating(s)	1 Strong Buy rating(s)	2.83
PennyMac Financial Services	0 Sell rating(s)	1 Hold rating(s)	5 Buy rating(s)	0 Strong Buy rating(s)	2.83

Summary

PennyMac Financial Services beats Veritex on 14 of the 20 factors compared between the two stocks.