Contrasting Glacier Bancorp (GBCI) & Bear State Financial (BSF)

Glacier Bancorp (NASDAQ: GBCI) and Bear State Financial (NASDAQ:BSF) are both financials companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, risk, earnings and dividends.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Glacier Bancorp and Bear State Financial, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Glacier Bancorp 0 2 1 0 2.33
Bear State Financial 0 0 0 0 N/A

Glacier Bancorp presently has a consensus target price of $38.33, suggesting a potential upside of 0.64%. Given Glacier Bancorp’s higher probable upside, analysts clearly believe Glacier Bancorp is more favorable than Bear State Financial.

Dividends

Glacier Bancorp pays an annual dividend of $0.84 per share and has a dividend yield of 2.2%. Bear State Financial pays an annual dividend of $0.12 per share and has a dividend yield of 1.2%. Glacier Bancorp pays out 49.1% of its earnings in the form of a dividend. Bear State Financial pays out 21.1% 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.

Volatility and Risk

Glacier Bancorp has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500. Comparatively, Bear State Financial has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500.

Insider & Institutional Ownership

78.7% of Glacier Bancorp shares are held by institutional investors. Comparatively, 11.9% of Bear State Financial shares are held by institutional investors. 0.7% of Glacier Bancorp shares are held by company insiders. Comparatively, 45.7% of Bear State Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Glacier Bancorp and Bear State Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Glacier Bancorp 27.69% 11.35% 1.37%
Bear State Financial 21.33% 9.47% 1.05%

Valuation and Earnings

This table compares Glacier Bancorp and Bear State Financial’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Glacier Bancorp $451.47 million 6.58 $121.13 million $1.71 22.27
Bear State Financial $92.10 million 4.21 $17.45 million $0.57 18.04

Glacier Bancorp has higher revenue and earnings than Bear State Financial. Bear State Financial is trading at a lower price-to-earnings ratio than Glacier Bancorp, indicating that it is currently the more affordable of the two stocks.

Summary

Glacier Bancorp beats Bear State Financial on 13 of the 15 factors compared between the two stocks.

Glacier Bancorp Company Profile

Glacier Bancorp, Inc. is a bank holding company. The Company provides commercial banking services. As of December 31, 2016, it provided banking services from approximately 140 locations in Montana, Idaho, Wyoming, Colorado, Utah and Washington, through its bank subsidiary, Glacier Bank (the Bank). It offers a range of banking products and services, including transaction and savings deposits, real estate, commercial, agriculture, and consumer loans and mortgage origination services. It serves individuals, small to medium-sized businesses, community organizations and public entities. It focuses its lending activities primarily on various types of loans, including first-mortgage, conventional loans secured by residential properties, particularly single-family; commercial lending, including agriculture that concentrates on targeted businesses, and installment lending for consumer purposes, including home equity and automobile.

Bear State Financial Company Profile

Bear State Financial, Inc. is a bank holding company. The Company’s subsidiary Bear State Bank, N.A. (the Bank) is a community-oriented financial institution, which offers a range of retail and business deposit accounts, including noninterest bearing and interest bearing checking accounts, savings and money market accounts, certificates of deposit and individual retirement accounts. The Loan products offered by the Bank include residential real estate loans, consumer loans, construction loans, lines of credit, commercial real estate loans, and commercial business loans. The Bank’s other financial services include automated teller machines; around the clock telephone banking; online banking, including account access, bill payment and e-statements; mobile banking, including remote deposit capture and funds transfer; Bounce Protection overdraft services; debit cards, and safe deposit boxes.

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