Head-To-Head Analysis: Banc of California (BANC) vs. Renasant (RNST)

Banc of California (NYSE: BANC) and Renasant (NASDAQ:RNST) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, profitability, dividends, analyst recommendations, risk, valuation and institutional ownership.

Insider & Institutional Ownership

65.3% of Renasant shares are owned by institutional investors. 16.9% of Banc of California shares are owned by company insiders. Comparatively, 3.9% of Renasant shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Banc of California and Renasant’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Banc of California 13.28% 9.93% 0.70%
Renasant 18.19% 8.45% 1.22%

Earnings and Valuation

This table compares Banc of California and Renasant’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Banc of California $501.02 million 1.93 $57.70 million $0.72 26.49
Renasant $506.89 million 4.05 $92.19 million $1.97 21.13

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Banc of California and Renasant, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Banc of California 1 2 3 0 2.33
Renasant 0 4 1 0 2.20

Banc of California currently has a consensus target price of $22.25, indicating a potential upside of 16.64%. Renasant has a consensus target price of $45.25, indicating a potential upside of 8.72%. Given Banc of California’s stronger consensus rating and higher possible upside, equities analysts clearly believe Banc of California is more favorable than Renasant.

Risk and Volatility

Banc of California has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500. Comparatively, Renasant has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500.

Dividends

Banc of California pays an annual dividend of $0.52 per share and has a dividend yield of 2.7%. Renasant pays an annual dividend of $0.76 per share and has a dividend yield of 1.8%. Banc of California pays out 72.2% of its earnings in the form of a dividend. Renasant pays out 38.6% 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.

Summary

Renasant beats Banc of California on 9 of the 16 factors compared between the two stocks.

About Banc of California

Banc of California, Inc. is a financial holding company. The Company is the parent of Banc of California, National Association (the Bank). The Company operates through Commercial Banking; Mortgage Banking, and Corporate/Other segments. As of December 31, 2016, the Bank had 90 California banking locations, including 39 full service branches in San Diego, Orange, Santa Barbara, and Los Angeles Counties. The Bank offers automated bill payment, cash and treasury management, master demand accounts, foreign exchange, interest rate swaps, trust services, card payment services, remote and mobile deposit capture, automatic clearing house (ACH) origination, wire transfer, direct deposit, and safe deposit boxes. Bank customers also have the ability to access their accounts through a nationwide network of automated teller machines (ATMs), online, telephone and mobile banking. The Bank’s lending activities are focused on providing financing to private businesses, entrepreneurs and homeowners.

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.

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