BofI (BOFI) and Sandy Spring Bancorp (SASR) Head-To-Head Contrast

BofI (NASDAQ: BOFI) and Sandy Spring Bancorp (NASDAQ:SASR) are both small-cap financials companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, institutional ownership, dividends, analyst recommendations, risk and earnings.

Analyst Recommendations

This is a summary of current ratings and target prices for BofI and Sandy Spring Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BofI 0 1 3 0 2.75
Sandy Spring Bancorp 0 2 1 0 2.33

BofI presently has a consensus target price of $34.50, suggesting a potential upside of 14.01%. Sandy Spring Bancorp has a consensus target price of $45.00, suggesting a potential upside of 15.33%. Given Sandy Spring Bancorp’s higher probable upside, analysts clearly believe Sandy Spring Bancorp is more favorable than BofI.

Earnings & Valuation

This table compares BofI and Sandy Spring Bancorp’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BofI $455.42 million 4.23 $134.74 million $2.09 14.48
Sandy Spring Bancorp $221.60 million 4.22 $48.25 million $2.41 16.19

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

Institutional and Insider Ownership

84.4% of BofI shares are owned by institutional investors. Comparatively, 70.4% of Sandy Spring Bancorp shares are owned by institutional investors. 6.2% of BofI shares are owned by insiders. Comparatively, 2.6% of Sandy Spring Bancorp shares are owned by 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.

Risk & Volatility

BofI has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500. Comparatively, Sandy Spring Bancorp has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500.

Dividends

Sandy Spring Bancorp pays an annual dividend of $1.04 per share and has a dividend yield of 2.7%. BofI does not pay a dividend. Sandy Spring Bancorp pays out 43.2% of its earnings in the form of a dividend.

Profitability

This table compares BofI and Sandy Spring Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BofI 29.36% 17.00% 1.62%
Sandy Spring Bancorp 24.31% 10.61% 1.12%

Summary

BofI beats Sandy Spring Bancorp on 11 of the 16 factors compared between the two stocks.

About BofI

BofI Holding, Inc. (BofI) is the holding company for BofI Federal Bank (the Bank). The Bank is a diversified financial services company. The Bank provides consumer and business banking products through its branchless, low-cost distribution channels and affinity partners. The Bank has deposit and loan customers, including consumer and business checking, savings and time deposit accounts and financing for single family and multifamily residential properties, small-to-medium size businesses in target sectors, and selected specialty finance receivables. The Bank distributes its deposit products through a range of retail distribution channels, and its deposits consist of demand, savings and time deposits accounts. Its mortgage-backed securities consist primarily of mortgage pass-through securities issued by government-sponsored entities and non-agency collateralized mortgage obligations and pass-through mortgage-backed securities issued by private sponsors.

About Sandy Spring Bancorp

Sandy Spring Bancorp, Inc. is the bank holding company for Sandy Spring Bank (the Bank). The Company operates through three segments: Community Banking, Insurance and Investment Management. The Company’s Community Banking segment operates through Sandy Spring Bank and involves delivering a range of financial products and services, including various loan and deposit products to both individuals and businesses. The Insurance segment operates through Sandy Spring Insurance Corporation, a subsidiary of the Bank, and offers annuities as an alternative to traditional deposit accounts. The Investment Management segment operates through West Financial Services, Inc., a subsidiary of the Bank, which provides investment management and financial planning services. As of December 31, 2016, the Bank conducted commercial banking business through 44 community offices and six financial centers located in Central Maryland, Northern Virginia and Washington D.C.

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