VBTX vs. PFBC, TCBK, STBA, SRCE, BUSE, NBHC, SYBT, SBSI, EFSC, and LKFN
Should you be buying Veritex stock or one of its competitors? The main competitors of Veritex include Preferred Bank (PFBC), TriCo Bancshares (TCBK), S&T Bancorp (STBA), 1st Source (SRCE), First Busey (BUSE), National Bank (NBHC), Stock Yards Bancorp (SYBT), Southside Bancshares (SBSI), Enterprise Financial Services (EFSC), and Lakeland Financial (LKFN).
Veritex (NASDAQ:VBTX) and Preferred Bank (NASDAQ:PFBC) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, institutional ownership, profitability, community ranking and media sentiment.
Preferred Bank received 97 more outperform votes than Veritex when rated by MarketBeat users. Likewise, 66.46% of users gave Preferred Bank an outperform vote while only 51.01% of users gave Veritex an outperform vote.
Veritex has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500. Comparatively, Preferred Bank has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500.
Preferred Bank has lower revenue, but higher earnings than Veritex. Preferred Bank is trading at a lower price-to-earnings ratio than Veritex, indicating that it is currently the more affordable of the two stocks.
Veritex pays an annual dividend of $0.80 per share and has a dividend yield of 3.9%. Preferred Bank pays an annual dividend of $2.80 per share and has a dividend yield of 3.5%. Veritex pays out 46.5% of its earnings in the form of a dividend. Preferred Bank pays out 27.0% 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.
In the previous week, Preferred Bank had 1 more articles in the media than Veritex. MarketBeat recorded 9 mentions for Preferred Bank and 8 mentions for Veritex. Preferred Bank's average media sentiment score of 0.94 beat Veritex's score of 0.20 indicating that Preferred Bank is being referred to more favorably in the news media.
Preferred Bank has a net margin of 28.70% compared to Veritex's net margin of 12.47%. Preferred Bank's return on equity of 21.28% beat Veritex's return on equity.
88.3% of Veritex shares are owned by institutional investors. Comparatively, 72.8% of Preferred Bank shares are owned by institutional investors. 4.6% of Veritex shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Veritex presently has a consensus target price of $24.38, indicating a potential upside of 18.96%. Preferred Bank has a consensus target price of $67.00, indicating a potential downside of 15.59%. Given Veritex's higher probable upside, equities analysts clearly believe Veritex is more favorable than Preferred Bank.
Summary
Preferred Bank beats Veritex on 12 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding VBTX and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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