Renasant (NASDAQ: RNST) and Blue Hills Bancorp (NASDAQ:BHBK) are both financials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Earnings and Valuation

This table compares Renasant and Blue Hills Bancorp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Renasant $466.37 million 4.38 $90.92 million $2.19 18.91
Blue Hills Bancorp $81.67 million 6.72 $8.65 million $0.80 25.56

Renasant has higher revenue and earnings than Blue Hills Bancorp. Renasant is trading at a lower price-to-earnings ratio than Blue Hills Bancorp, indicating that it is currently the more affordable of the two stocks.

Dividends

Renasant pays an annual dividend of $0.76 per share and has a dividend yield of 1.8%. Blue Hills Bancorp pays an annual dividend of $0.60 per share and has a dividend yield of 2.9%. Renasant pays out 34.7% of its earnings in the form of a dividend. Blue Hills Bancorp pays out 75.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Ratings

This is a summary of current ratings and recommmendations for Renasant and Blue Hills Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Renasant 0 2 0 0 2.00
Blue Hills Bancorp 0 2 0 0 2.00

Renasant presently has a consensus price target of $44.50, suggesting a potential upside of 7.46%. Blue Hills Bancorp has a consensus price target of $21.75, suggesting a potential upside of 6.36%. Given Renasant’s higher probable upside, equities research analysts clearly believe Renasant is more favorable than Blue Hills Bancorp.

Risk and Volatility

Renasant has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. Comparatively, Blue Hills Bancorp has a beta of 0.27, indicating that its stock price is 73% less volatile than the S&P 500.

Profitability

This table compares Renasant and Blue Hills Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Renasant 20.44% 8.15% 1.17%
Blue Hills Bancorp 19.33% 3.50% 0.55%

Institutional & Insider Ownership

64.7% of Renasant shares are owned by institutional investors. Comparatively, 51.9% of Blue Hills Bancorp shares are owned by institutional investors. 3.9% of Renasant shares are owned by insiders. Comparatively, 3.7% of Blue Hills Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Renasant beats Blue Hills Bancorp on 11 of the 14 factors compared between the two stocks.

About Renasant

Renasant Corporation is a bank holding company that owns and operates Renasant Bank (the Bank) and Renasant Insurance, Inc. (Renasant Insurance). The Company’s segments include Community Banks, which delivers a range of banking and financial services to individuals and small to medium-sized businesses, including checking and savings accounts, business and personal loans, equipment leasing, as well as safe deposit and night depository facilities; Insurance, which includes a full service insurance agency offering all lines of commercial and personal insurance through major carriers; Wealth Management, which offers a range of fiduciary services that includes the administration and management of trust accounts, including personal and corporate benefit accounts, and custodial accounts, and Other. The Bank has its operations in Mississippi, Tennessee, Alabama, Florida and Georgia. Renasant Insurance has its operations in Mississippi. Renasant Insurance is a subsidiary of the Bank.

About Blue Hills Bancorp

Blue Hills Bancorp, Inc. is a bank holding company for the Blue Hills Bank (the Bank). Blue Hills Bank is a Massachusetts-chartered savings bank. As of December 31, 2016, the Bank provided financial services to individuals, families, small to mid-size businesses and government and non-profit organizations online and through its 11 full-service branch offices located in Brookline, Dedham, Hyde Park, Milton, Nantucket, Norwood, West Roxbury, and Westwood, Massachusetts. Its primary deposit-taking market includes Norfolk, Suffolk and Nantucket Counties in Massachusetts, and its lending market is primarily based in eastern Massachusetts. Its business consists primarily of accepting deposits from the general public, commercial businesses and government and non-profit organizations, and investing those deposits, together with funds generated from operations and borrowings in one- to four-family residential mortgage loans, commercial business loans and investment securities, among others.

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