Critical Review: Columbia Banking System (COLB) versus Guaranty Bancshares (GNTY)
Columbia Banking System (NASDAQ: COLB) and Guaranty Bancshares (NASDAQ:GNTY) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitability, earnings, institutional ownership, valuation and dividends.
Risk and Volatility
Columbia Banking System has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500. Comparatively, Guaranty Bancshares has a beta of 0.01, meaning that its share price is 99% less volatile than the S&P 500.
Insider & Institutional Ownership
96.8% of Columbia Banking System shares are owned by institutional investors. Comparatively, 19.4% of Guaranty Bancshares shares are owned by institutional investors. 1.2% of Columbia Banking System shares are owned by company insiders. Comparatively, 34.1% of Guaranty Bancshares shares are owned by company 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.
Valuation & Earnings
This table compares Columbia Banking System and Guaranty Bancshares’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Columbia Banking System||$430.80 million||4.93||$115.01 million||$1.97||18.46|
|Guaranty Bancshares||$67.66 million||4.92||N/A||N/A||N/A|
Columbia Banking System has higher revenue and earnings than Guaranty Bancshares.
This table compares Columbia Banking System and Guaranty Bancshares’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Columbia Banking System||25.82%||8.99%||1.20%|
Columbia Banking System pays an annual dividend of $0.88 per share and has a dividend yield of 2.4%. Guaranty Bancshares pays an annual dividend of $0.52 per share and has a dividend yield of 1.7%. Columbia Banking System pays out 44.7% of its earnings in the form of a dividend.
This is a breakdown of recent ratings and target prices for Columbia Banking System and Guaranty Bancshares, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Columbia Banking System||0||2||2||0||2.50|
Columbia Banking System currently has a consensus price target of $44.25, suggesting a potential upside of 21.70%. Guaranty Bancshares has a consensus price target of $34.00, suggesting a potential upside of 12.47%. Given Columbia Banking System’s stronger consensus rating and higher probable upside, research analysts plainly believe Columbia Banking System is more favorable than Guaranty Bancshares.
Columbia Banking System beats Guaranty Bancshares on 11 of the 14 factors compared between the two stocks.
Columbia Banking System Company Profile
Columbia Banking System, Inc. (Columbia) is a bank holding company for Columbia State Bank (the Bank) and Columbia Trust Company (Columbia Trust). The Company provides a range of banking services to small and medium-sized businesses, professionals and individuals. It offers products and services, which include Personal Banking, Business Banking and Wealth Management. Its Personal Banking products and services include Checking and Saving Accounts; Consumer Lending; Digital Banking; Residential Lending, and VISA Card Services. Its Business Banking products and services include Agricultural Lending; Commercial and Industrial Lending; International Banking; Merchant Card Services; Municipal Lending; Real Estate and Real Estate Construction Lending; Remote Deposit Capture; Small Business Administration (SBA) Lending; Small Business Services, and Treasury Management. Its Wealth Management products and services include Investment Services, Private Banking and Professional Banking.
Guaranty Bancshares Company Profile
Guaranty Bancshares, Inc. is the holding company for Guaranty Bank & Trust (Guaranty). Guaranty offers various solutions, such as personal banking, business banking, mortgage and wealth management. Its personal banking solutions include checking accounts, which include compare accounts, green checking, student checking, choice checking, guaranty interest checking, order checks and debit cards; savings accounts, which include regular savings, premier money market, certificate of deposit, individual retirement account (IRA) options and health savings account, and online banking, which includes money desktop and e-statements. Guaranty offers various loans, including line of credit, small business administration loans and real estate loans. Guaranty also offers mobile banking solutions, mortgage warehouse lending solutions and treasury management solutions. It has approximately 30 bank locations in over 20 Texas communities.
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