S&T Bancorp (STBA) & The Competition Critical Review

S&T Bancorp (NASDAQ: STBA) is one of 199 public companies in the “Commercial Banks” industry, but how does it contrast to its peers? We will compare S&T Bancorp to related businesses based on the strength of its earnings, dividends, institutional ownership, valuation, risk, profitability and analyst recommendations.

Valuation & Earnings

This table compares S&T Bancorp and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
S&T Bancorp $282.41 million $71.39 million 17.83
S&T Bancorp Competitors $343.96 million $72.97 million 21.37

S&T Bancorp’s peers have higher revenue and earnings than S&T Bancorp. S&T Bancorp is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares S&T Bancorp and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
S&T Bancorp 26.44% 9.41% 1.15%
S&T Bancorp Competitors 20.52% 8.72% 0.93%

Dividends

S&T Bancorp pays an annual dividend of $0.88 per share and has a dividend yield of 2.1%. S&T Bancorp pays out 37.9% of its earnings in the form of a dividend. As a group, “Commercial Banks” companies pay a dividend yield of 1.8% and pay out 35.5% of their earnings in the form of a dividend.

Risk and Volatility

S&T Bancorp has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, S&T Bancorp’s peers have a beta of 0.75, meaning that their average share price is 25% less volatile than the S&P 500.

Institutional and Insider Ownership

55.1% of S&T Bancorp shares are owned by institutional investors. Comparatively, 47.3% of shares of all “Commercial Banks” companies are owned by institutional investors. 2.7% of S&T Bancorp shares are owned by insiders. Comparatively, 11.8% of shares of all “Commercial Banks” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for S&T Bancorp and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
S&T Bancorp 0 3 0 0 2.00
S&T Bancorp Competitors 365 2888 2332 67 2.37

S&T Bancorp currently has a consensus target price of $39.00, indicating a potential downside of 5.73%. As a group, “Commercial Banks” companies have a potential upside of 2.93%. Given S&T Bancorp’s peers stronger consensus rating and higher probable upside, analysts clearly believe S&T Bancorp has less favorable growth aspects than its peers.

Summary

S&T Bancorp peers beat S&T Bancorp on 9 of the 15 factors compared.

S&T Bancorp Company Profile

S&T Bancorp, Inc. (S&T) is a bank holding company. The Company operates through three segments: Community Banking, Wealth Management and Insurance. The Community Banking segment offers services, which include accepting time and demand deposits, and originating commercial and consumer loans. The Wealth Management segment offers brokerage services, serves as executor and trustee under wills and deeds and as guardian and custodian of employee benefits and provides other trust services. In addition, it is a registered investment advisor that manages private investment accounts for individuals and institutions. The insurance segment includes an insurance agency offering commercial property and casualty insurance, group life and health coverage, employee benefit solutions and personal insurance lines. The Company’s subsidiaries include S&T Bank, 9th Street Holdings, Inc. and STBA Capital Trust I.

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