Head-To-Head Analysis: First Busey (BUSE) versus Peoples Utah Bancorp (PUB)

Peoples Utah Bancorp (NASDAQ: PUB) and First Busey (NASDAQ:BUSE) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, institutional ownership, dividends, earnings, analyst recommendations and valuation.

Institutional and Insider Ownership

30.8% of Peoples Utah Bancorp shares are owned by institutional investors. Comparatively, 45.9% of First Busey shares are owned by institutional investors. 25.2% of Peoples Utah Bancorp shares are owned by company insiders. Comparatively, 9.6% of First Busey shares 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.

Dividends

Peoples Utah Bancorp pays an annual dividend of $0.36 per share and has a dividend yield of 1.2%. First Busey pays an annual dividend of $0.80 per share and has a dividend yield of 2.7%. Peoples Utah Bancorp pays out 33.3% of its earnings in the form of a dividend. First Busey pays out 54.1% 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.

Valuation and Earnings

This table compares Peoples Utah Bancorp and First Busey’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Peoples Utah Bancorp $100.54 million 5.60 $19.85 million $1.08 28.15
First Busey $308.78 million 4.68 $62.73 million $1.48 20.05

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

Analyst Recommendations

This is a summary of current ratings and recommmendations for Peoples Utah Bancorp and First Busey, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Peoples Utah Bancorp 0 0 1 0 3.00
First Busey 0 3 1 0 2.25

Peoples Utah Bancorp currently has a consensus price target of $35.00, suggesting a potential upside of 15.13%. First Busey has a consensus price target of $33.50, suggesting a potential upside of 12.91%. Given Peoples Utah Bancorp’s stronger consensus rating and higher possible upside, research analysts clearly believe Peoples Utah Bancorp is more favorable than First Busey.

Profitability

This table compares Peoples Utah Bancorp and First Busey’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Peoples Utah Bancorp 19.74% 11.67% 1.61%
First Busey 20.31% 10.75% 1.23%

Volatility & Risk

Peoples Utah Bancorp has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500. Comparatively, First Busey has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500.

Summary

Peoples Utah Bancorp beats First Busey on 8 of the 15 factors compared between the two stocks.

Peoples Utah Bancorp Company Profile

People’s Utah Bancorp is a bank holding company. As of December 31, 2016, the Company had 18 retail banking locations, two residential mortgage offices and other support facilities operated through its banking subsidiary, People’s Intermountain Bank (PIB or the Bank). The Company provides full-service retail banking in the state of Utah, including a range of banking and related services to locally owned businesses, professional firms, real-estate developers, residential home builders, high net-worth individuals, investors and other customers. It also provides a range of banking services and products to individuals. The Bank operates two divisions: Bank of American Fork (BAF), Lewiston State Bank (LSB) and GrowthFunding Equipment Finance. The Company provides banking services throughout its market area to real estate developers, contractors and small-to medium-sized businesses.

First Busey Company Profile

First Busey Corporation (First Busey) is a financial holding company. The Company offers a range of financial services through its banking and non-banking subsidiaries. The Company operates through three segments: Banking, Remittance Processing and Wealth Management. The Banking segment provides a range of banking services to individual and corporate customers through its branch network in downstate Illinois, St. Louis, Missouri metropolitan area, southwest Florida and through its branch in Indianapolis, Indiana. The Remittance Processing segment provides for online bill payments, lockbox and walk-in payments. The Wealth Management segment provides a range of asset management, investment and fiduciary services to individuals, businesses and foundations, philanthropic advisory services and farm and brokerage services. The Company conducts the business of banking and related services through Busey Bank. The Company’s subsidiaries also include First Community Financial Bank.

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