VBTX vs. PFBC, TCBK, STBA, PEBO, SRCE, GABC, QCRH, BUSE, RBCAA, and BY
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), Peoples Bancorp (PEBO), 1st Source (SRCE), German American Bancorp (GABC), QCR (QCRH), First Busey (BUSE), Republic Bancorp (RBCAA), and Byline Bancorp (BY). These companies are all part of the "state commercial banks" industry.
Veritex (NASDAQ:VBTX) and Preferred Bank (NASDAQ:PFBC) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their community ranking, dividends, analyst recommendations, risk, valuation, media sentiment, institutional ownership, earnings and profitability.
In the previous week, Veritex had 19 more articles in the media than Preferred Bank. MarketBeat recorded 27 mentions for Veritex and 8 mentions for Preferred Bank. Veritex's average media sentiment score of 0.34 beat Preferred Bank's score of 0.28 indicating that Veritex is being referred to more favorably in the media.
Veritex has a beta of 1.34, indicating that its stock price is 34% more volatile than the S&P 500. Comparatively, Preferred Bank has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.
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.
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.
88.3% of Veritex shares are held by institutional investors. Comparatively, 72.8% of Preferred Bank shares are held by institutional investors. 4.3% of Veritex shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
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 3.6%. 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.
Veritex presently has a consensus target price of $24.38, suggesting a potential upside of 19.49%. Preferred Bank has a consensus target price of $67.00, suggesting a potential downside of 13.51%. Given Veritex's higher possible upside, research analysts clearly believe Veritex is more favorable than Preferred Bank.
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 51.12% of users gave Veritex an outperform vote.
Summary
Veritex and Preferred Bank tied by winning 10 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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