SunTrust Banks (STI) & The Competition Critical Comparison
SunTrust Banks (NYSE: STI) is one of 344 public companies in the “Banks” industry, but how does it weigh in compared to its rivals? We will compare SunTrust Banks to related businesses based on the strength of its profitability, earnings, risk, valuation, institutional ownership, dividends and analyst recommendations.
Institutional & Insider Ownership
82.3% of SunTrust Banks shares are owned by institutional investors. Comparatively, 52.2% of shares of all “Banks” companies are owned by institutional investors. 0.6% of SunTrust Banks shares are owned by company insiders. Comparatively, 10.5% of shares of all “Banks” companies 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.
Risk & Volatility
SunTrust Banks has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500. Comparatively, SunTrust Banks’ rivals have a beta of 0.82, meaning that their average share price is 18% less volatile than the S&P 500.
This is a breakdown of recent ratings and price targets for SunTrust Banks and its rivals, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|SunTrust Banks Competitors||2105||8329||8413||324||2.36|
SunTrust Banks presently has a consensus target price of $62.97, indicating a potential upside of 4.26%. As a group, “Banks” companies have a potential downside of 8.15%. Given SunTrust Banks’ higher possible upside, equities analysts plainly believe SunTrust Banks is more favorable than its rivals.
Earnings & Valuation
This table compares SunTrust Banks and its rivals revenue, earnings per share and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|SunTrust Banks||$9.16 billion||$1.88 billion||15.49|
|SunTrust Banks Competitors||$5.42 billion||$809.95 million||351.74|
SunTrust Banks has higher revenue and earnings than its rivals. SunTrust Banks 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.
SunTrust Banks pays an annual dividend of $1.60 per share and has a dividend yield of 2.6%. SunTrust Banks pays out 41.0% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 1.9% and pay out 34.4% of their earnings in the form of a dividend. SunTrust Banks has increased its dividend for 4 consecutive years.
This table compares SunTrust Banks and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|SunTrust Banks Competitors||18.89%||8.82%||0.93%|
SunTrust Banks beats its rivals on 9 of the 15 factors compared.
About SunTrust Banks
SunTrust Banks, Inc. is a provider of financial services. The Company’s principal subsidiary is SunTrust Bank (the Bank). The Company’s business segments include Consumer Banking and Private Wealth Management, Wholesale Banking, Mortgage Banking and Corporate Other. As of December 31, 2016, the Consumer Banking and Private Wealth Management segment consisted of three primary businesses: Consumer Banking, Consumer Lending and Private Wealth Management. The Wholesale Banking segment includes the operations of the Corporate and investment banking (CIB), Commercial and Business Banking, Commercial Real Estate, and Treasury and Payment Solutions businesses. The Mortgage Banking segment offers residential mortgage products nationally through its retail and correspondent channels, the Internet (www.suntrust.com) and by telephone. The Bank provides clients with a selection of full-, self- and assisted-service channels, including branch, call center, Teller Connect machines, mobile and tablet.
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