Head to Head Review: Enterprise Bancorp (EBTC) versus Its Rivals

Enterprise Bancorp (NASDAQ: EBTC) is one of 331 publicly-traded companies in the “Banks” industry, but how does it contrast to its rivals? We will compare Enterprise Bancorp to related businesses based on the strength of its risk, dividends, earnings, valuation, institutional ownership, analyst recommendations and profitability.

Risk and Volatility

Enterprise Bancorp has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, Enterprise Bancorp’s rivals have a beta of 0.79, suggesting that their average share price is 21% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Enterprise Bancorp and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enterprise Bancorp 0 0 0 0 N/A
Enterprise Bancorp Competitors 2098 8280 8378 324 2.36

As a group, “Banks” companies have a potential downside of 22.01%. Given Enterprise Bancorp’s rivals higher probable upside, analysts clearly believe Enterprise Bancorp has less favorable growth aspects than its rivals.

Earnings & Valuation

This table compares Enterprise Bancorp and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Enterprise Bancorp $106.76 million $18.75 million 19.47
Enterprise Bancorp Competitors $3.97 billion $518.19 million 18.85

Enterprise Bancorp’s rivals have higher revenue and earnings than Enterprise Bancorp. Enterprise Bancorp is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Enterprise Bancorp and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Enterprise Bancorp 18.64% 9.80% 0.84%
Enterprise Bancorp Competitors 18.84% 8.83% 0.94%

Dividends

Enterprise Bancorp pays an annual dividend of $0.54 per share and has a dividend yield of 1.5%. Enterprise Bancorp pays out 29.0% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 1.9% and pay out 34.0% of their earnings in the form of a dividend.

Insider and Institutional Ownership

19.8% of Enterprise Bancorp shares are owned by institutional investors. Comparatively, 52.4% of shares of all “Banks” companies are owned by institutional investors. 19.7% of Enterprise Bancorp shares are owned by company insiders. Comparatively, 10.5% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Enterprise Bancorp rivals beat Enterprise Bancorp on 7 of the 12 factors compared.

About Enterprise Bancorp

Enterprise Bancorp, Inc. operates as the holding company of Enterprise Bank and Trust Company (the Bank). The Company is engaged in the business of gathering deposits from the general public and investing primarily in loans and investment securities and utilizing the resulting cash flows to conduct operations, expand the branch network, and pay dividends to stockholders. Through the Bank and its subsidiaries, the Company offers a range of commercial and consumer loan products, deposit products and cash management services. The Company also offers investment advisory and wealth management, trust and insurance services. The Company offers lending services to business entities, non-profit organizations, professionals and individuals. Loans made to businesses include commercial mortgage loans; construction and land development loans; secured and unsecured commercial loans; lines of credit, and standby letters of credit.

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