Wilshire Bancorp (NASDAQ: WIBC) is one of 207 publicly-traded companies in the “Commercial Banks” industry, but how does it contrast to its rivals? We will compare Wilshire Bancorp to similar businesses based on the strength of its earnings, risk, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Insider and Institutional Ownership

46.5% of shares of all “Commercial Banks” companies are owned by institutional investors. 11.7% of shares of all “Commercial Banks” companies 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.

Profitability

This table compares Wilshire Bancorp and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wilshire Bancorp 35.54% 12.58% 1.45%
Wilshire Bancorp Competitors 19.95% 8.42% 0.89%

Volatility & Risk

Wilshire Bancorp has a beta of 1.51, meaning that its share price is 51% more volatile than the S&P 500. Comparatively, Wilshire Bancorp’s rivals have a beta of 0.74, meaning that their average share price is 26% less volatile than the S&P 500.

Dividends

Wilshire Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 2.2%. Wilshire Bancorp pays out 32.4% of its earnings in the form of a dividend. As a group, “Commercial Banks” companies pay a dividend yield of 1.8% and pay out 35.6% of their earnings in the form of a dividend. Wilshire Bancorp is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Wilshire Bancorp and its rivals gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Wilshire Bancorp N/A N/A 14.78
Wilshire Bancorp Competitors N/A N/A 25.34

Wilshire Bancorp is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent ratings for Wilshire Bancorp and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wilshire Bancorp 0 0 0 0 N/A
Wilshire Bancorp Competitors 384 2932 2396 70 2.37

As a group, “Commercial Banks” companies have a potential upside of 0.72%. Given Wilshire Bancorp’s rivals higher probable upside, analysts plainly believe Wilshire Bancorp has less favorable growth aspects than its rivals.

Summary

Wilshire Bancorp beats its rivals on 6 of the 9 factors compared.

About Wilshire Bancorp

Wilshire Bancorp, Inc. (Wilshire) is a bank holding company, which offers a range of financial products and services primarily through its subsidiary, Wilshire Bank (the Bank), a California state-chartered commercial bank. The Bank has over 35 full-service branch offices in Southern California, Texas, Alabama, Georgia, New Jersey and the greater New York City metropolitan area. It also has approximately six loan production offices (LPOs) of which over four are utilized primarily for the origination of loans under the small business administration (SBA) lending program located in California, Colorado, Georgia and Washington, and approximately two are utilized primarily for the origination of residential mortgage loans located in Southern California. The Company has approximately $3.84 billion in total loans (net of deferred fees and including loans held-for-sale) and over $3.84 billion in deposits.

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