NBT Bancorp (NASDAQ:NBTB) and Simmons First National (NASDAQ:SFNC) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, earnings, valuation, institutional ownership, profitability and analyst recommendations.
NBT Bancorp pays an annual dividend of $1.04 per share and has a dividend yield of 2.7%. Simmons First National pays an annual dividend of $0.60 per share and has a dividend yield of 2.0%. NBT Bancorp pays out 52.8% of its earnings in the form of a dividend. Simmons First National pays out 35.1% 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. NBT Bancorp has raised its dividend for 5 consecutive years and Simmons First National has raised its dividend for 6 consecutive years.
52.7% of NBT Bancorp shares are held by institutional investors. Comparatively, 60.1% of Simmons First National shares are held by institutional investors. 3.2% of NBT Bancorp shares are held by insiders. Comparatively, 2.8% of Simmons First National shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares NBT Bancorp and Simmons First National’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|NBT Bancorp||$430.71 million||3.95||$82.15 million||$1.97||19.78|
|Simmons First National||$533.77 million||5.08||$92.94 million||$1.71||17.19|
Simmons First National has higher revenue and earnings than NBT Bancorp. Simmons First National is trading at a lower price-to-earnings ratio than NBT Bancorp, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations and price targets for NBT Bancorp and Simmons First National, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Simmons First National||0||2||2||0||2.50|
NBT Bancorp presently has a consensus price target of $39.75, indicating a potential upside of 2.00%. Simmons First National has a consensus price target of $33.00, indicating a potential upside of 12.24%. Given Simmons First National’s stronger consensus rating and higher probable upside, analysts plainly believe Simmons First National is more favorable than NBT Bancorp.
This table compares NBT Bancorp and Simmons First National’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Simmons First National||22.55%||9.66%||1.30%|
Risk and Volatility
NBT Bancorp has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500. Comparatively, Simmons First National has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500.
Simmons First National beats NBT Bancorp on 12 of the 17 factors compared between the two stocks.
About NBT Bancorp
NBT Bancorp Inc., a financial holding company, provides commercial banking, retail banking, and wealth management services. Its deposit products include demand deposit, savings, negotiable order of withdrawal, money market deposit, and certificate of deposit accounts. The company's loan portfolio comprises commercial, commercial real estate, agricultural, agricultural real estate, and business banking loans; consumer loans, such as indirect, home equity, and direct loans; and residential real estate mortgages, as well as real estate construction and development loans. It also provides trust and investment services; financial planning and life insurance services; and retirement plan consulting and recordkeeping services. In addition, the company offers insurance products comprising personal property and casualty, business liability, and commercial insurance, as well as other products and services through 24-hour online, mobile, and telephone channels that enable customers to check balances, make deposits, transfer funds, pay bills, access statements, apply for loans, and access various other products and services. As of January 22, 2018, it had 152 banking locations in New York, Pennsylvania, Vermont, Massachusetts, New Hampshire, and Maine. NBT Bancorp Inc. was founded in 1856 and is headquartered in Norwich, New York.
About Simmons First National
Simmons First National Corporation operates as the holding company for Simmons Bank that provides financial products and services to individuals and businesses. It offers checking, savings, and time deposits; loan products, including consumer, real estate, commercial, agricultural, equipment, and SBA lending; personal and corporate trust services; credit cards; investment management products; insurance products; and securities and investment services. The company conducts banking operations through approximately 200 financial centers located in communities throughout Arkansas, Colorado, Kansas, Missouri, Oklahoma, Tennessee, and Texas. Simmons First National Corporation was founded in 1903 and is headquartered in Pine Bluff, Arkansas.
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