Head-To-Head Review: Associated Banc (ASB) versus The Competition

Associated Banc (NYSE: ASB) is one of 199 publicly-traded companies in the “Commercial Banks” industry, but how does it contrast to its rivals? We will compare Associated Banc to related businesses based on the strength of its valuation, analyst recommendations, risk, profitability, dividends, earnings and institutional ownership.

Profitability

This table compares Associated Banc and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Associated Banc 19.54% 7.81% 0.79%
Associated Banc Competitors 20.45% 8.69% 0.93%

Valuation and Earnings

This table compares Associated Banc and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Associated Banc $1.14 billion $200.27 million 17.50
Associated Banc Competitors $343.96 million $72.97 million 21.57

Associated Banc has higher revenue and earnings than its rivals. Associated Banc 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.

Volatility and Risk

Associated Banc has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500. Comparatively, Associated Banc’s rivals have a beta of 0.75, meaning that their average share price is 25% less volatile than the S&P 500.

Dividends

Associated Banc pays an annual dividend of $0.56 per share and has a dividend yield of 2.2%. Associated Banc pays out 38.4% 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 35.3% of their earnings in the form of a dividend.

Insider & Institutional Ownership

76.6% of Associated Banc shares are held by institutional investors. Comparatively, 47.3% of shares of all “Commercial Banks” companies are held by institutional investors. 1.8% of Associated Banc shares are held by insiders. Comparatively, 11.7% of shares of all “Commercial Banks” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and price targets for Associated Banc and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Associated Banc 0 11 0 0 2.00
Associated Banc Competitors 365 2888 2335 67 2.37

Associated Banc currently has a consensus price target of $25.60, suggesting a potential upside of 0.20%. As a group, “Commercial Banks” companies have a potential upside of 2.89%. Given Associated Banc’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Associated Banc has less favorable growth aspects than its rivals.

Summary

Associated Banc rivals beat Associated Banc on 10 of the 15 factors compared.

Associated Banc Company Profile

Associated Banc-Corp is a bank holding company. The Company, through its banking subsidiary Associated Bank, National Association (the Bank) and various nonbanking subsidiaries, provides a range of banking and non-banking products and services to individuals. The Company operates through three segments: Corporate and Commercial Specialty; Community, Consumer, and Business, and Risk Management and Shared Services. The Corporate and Commercial Specialty segment consists of lending and deposit solutions to businesses, developers, not-for-profits, municipalities and financial institutions. The Corporate and Commercial Specialty segment consists of lending and deposit solutions to businesses, developers, not-for-profits, municipalities and financial institutions. The Risk Management and Shared Services segment includes Corporate Risk Management, Credit Administration, Finance, Treasury, Operations and Technology, which are shared functions.

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