Stock Yards Bancorp (NASDAQ: SYBT) and Fifth Third Bancorp (NASDAQ:FITB) are both financials companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, profitability, dividends and risk.
Risk and Volatility
Stock Yards Bancorp has a beta of 0.62, meaning that its share price is 38% less volatile than the S&P 500. Comparatively, Fifth Third Bancorp has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500.
This table compares Stock Yards Bancorp and Fifth Third Bancorp’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Stock Yards Bancorp||$155.97 million||5.15||$38.04 million||$1.65||21.48|
|Fifth Third Bancorp||$7.71 billion||2.80||$2.19 billion||$2.85||10.91|
Fifth Third Bancorp has higher revenue and earnings than Stock Yards Bancorp. Fifth Third Bancorp is trading at a lower price-to-earnings ratio than Stock Yards Bancorp, indicating that it is currently the more affordable of the two stocks.
This table compares Stock Yards Bancorp and Fifth Third Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Stock Yards Bancorp||24.39%||13.45%||1.42%|
|Fifth Third Bancorp||27.08%||9.65%||1.03%|
Stock Yards Bancorp pays an annual dividend of $0.84 per share and has a dividend yield of 2.4%. Fifth Third Bancorp pays an annual dividend of $0.64 per share and has a dividend yield of 2.1%. Stock Yards Bancorp pays out 50.9% of its earnings in the form of a dividend. Fifth Third Bancorp pays out 22.5% 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.
This is a summary of current ratings for Stock Yards Bancorp and Fifth Third Bancorp, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Stock Yards Bancorp||0||2||0||0||2.00|
|Fifth Third Bancorp||3||16||3||0||2.00|
Stock Yards Bancorp currently has a consensus price target of $39.00, suggesting a potential upside of 10.01%. Fifth Third Bancorp has a consensus price target of $30.78, suggesting a potential downside of 1.04%. Given Stock Yards Bancorp’s higher possible upside, equities research analysts plainly believe Stock Yards Bancorp is more favorable than Fifth Third Bancorp.
Institutional & Insider Ownership
47.7% of Stock Yards Bancorp shares are held by institutional investors. Comparatively, 85.7% of Fifth Third Bancorp shares are held by institutional investors. 6.2% of Stock Yards Bancorp shares are held by insiders. Comparatively, 0.4% of Fifth Third Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Fifth Third Bancorp beats Stock Yards Bancorp on 8 of the 15 factors compared between the two stocks.
About Stock Yards Bancorp
Stock Yards Bancorp, Inc. is the holding company for Stock Yards Bank & Trust Company (the Bank). The Bank is a state chartered bank. The Company operates through two segments: commercial banking, and wealth management and trust. The commercial banking segment provides a full range of loan and deposit products to individual consumers and businesses, plus origination of consumer mortgages and securities brokerage activity. The wealth management and trust segment provides investment management, trust and estate administration, and retirement plan services. The Bank provides commercial and personal banking services in the Louisville, Kentucky, Indianapolis, Indiana and Cincinnati, Ohio metropolitan markets through 37 full service banking offices, as of December 31, 2016. The Bank also originates and sells single-family residential mortgages. Additionally, the Bank offers securities brokerage services via its branch network through an arrangement with a third party broker-dealer.
About Fifth Third Bancorp
Fifth Third Bancorp is a bank holding company and a financial holding company. The Company conducts its principal lending, deposit gathering, transaction processing and service advisory activities through its banking and non-banking subsidiaries from banking centers located throughout the Midwestern and Southeastern regions of the United States. It operates through four segments: Commercial Banking, Branch Banking, Consumer Lending, and Wealth and Asset Management. It diversifies its loan and lease portfolio by offering a range of loan and lease products with various payment terms and rate structures. It offers commercial and industrial loans, commercial mortgage loans, commercial construction loans, commercial leases, residential mortgage loans, home equity, automobile loans, credit card, and other consumer loans and leases. It offers various types of deposits, such as demand deposits, interest checking deposits, savings deposits, money market deposits and transaction deposits.
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