ServisFirst Bancshares (NASDAQ: SFBS) is one of 210 public companies in the “Commercial Banks” industry, but how does it compare to its competitors? We will compare ServisFirst Bancshares to similar businesses based on the strength of its institutional ownership, risk, profitability, dividends, analyst recommendations, valuation and earnings.

Earnings & Valuation

This table compares ServisFirst Bancshares and its competitors gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
ServisFirst Bancshares $231.01 million $81.47 million 23.75
ServisFirst Bancshares Competitors $343.33 million $72.29 million 18.77

ServisFirst Bancshares’ competitors have higher revenue, but lower earnings than ServisFirst Bancshares. ServisFirst Bancshares is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares ServisFirst Bancshares and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ServisFirst Bancshares 35.08% 16.84% 1.46%
ServisFirst Bancshares Competitors 20.65% 8.78% 0.93%

Analyst Recommendations

This is a summary of current recommendations and price targets for ServisFirst Bancshares and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ServisFirst Bancshares 0 2 0 0 2.00
ServisFirst Bancshares Competitors 357 2836 2305 66 2.37

ServisFirst Bancshares currently has a consensus target price of $37.50, indicating a potential downside of 8.74%. As a group, “Commercial Banks” companies have a potential upside of 3.81%. Given ServisFirst Bancshares’ competitors stronger consensus rating and higher probable upside, analysts clearly believe ServisFirst Bancshares has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

42.5% of ServisFirst Bancshares shares are held by institutional investors. Comparatively, 46.2% of shares of all “Commercial Banks” companies are held by institutional investors. 14.0% of ServisFirst Bancshares shares are held by insiders. Comparatively, 11.8% of shares of all “Commercial Banks” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

ServisFirst Bancshares pays an annual dividend of $0.20 per share and has a dividend yield of 0.5%. ServisFirst Bancshares pays out 11.6% 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 34.3% of their earnings in the form of a dividend.

Volatility and Risk

ServisFirst Bancshares has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500. Comparatively, ServisFirst Bancshares’ competitors have a beta of 0.76, indicating that their average share price is 24% less volatile than the S&P 500.

Summary

ServisFirst Bancshares beats its competitors on 8 of the 15 factors compared.

About ServisFirst Bancshares

ServisFirst Bancshares, Inc. is a bank holding company whose business is conducted by its subsidiary, ServisFirst Bank (the Bank). The Company’s principal business is to accept deposits from the public and to make loans and other investments. The Company, through its bank, originates commercial, consumer and other loans; accept deposits; provides electronic banking services, such as online and mobile banking, including remote deposit capture, deliver treasury and cash management services, and provides correspondent banking services to other financial institutions. The Company’s principal sources of funds for loans and investments are demand, time, savings and other deposits and the amortization and prepayment of loans and borrowings. The Company offers a range of products and services, including round the clock telephone banking, direct deposit, Internet banking, mobile banking, traveler’s checks, safe deposit boxes, attorney trust accounts and automatic account transfers.

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