Eastern Bankshares (NASDAQ: EBC) is one of 114 public companies in the “Federal savings institutions” industry, but how does it compare to its competitors? We will compare Eastern Bankshares to related businesses based on the strength of its earnings, institutional ownership, profitability, dividends, valuation, analyst recommendations and risk.
Insider and Institutional Ownership
49.6% of Eastern Bankshares shares are held by institutional investors. Comparatively, 37.1% of shares of all “Federal savings institutions” companies are held by institutional investors. 1.0% of Eastern Bankshares shares are held by insiders. Comparatively, 9.0% of shares of all “Federal savings institutions” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Eastern Bankshares pays an annual dividend of $0.32 per share and has a dividend yield of 1.5%. Eastern Bankshares pays out 54.2% of its earnings in the form of a dividend. As a group, “Federal savings institutions” companies pay a dividend yield of 2.6% and pay out 30.3% of their earnings in the form of a dividend. Eastern Bankshares lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.
This is a summary of current ratings for Eastern Bankshares and its competitors, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Eastern Bankshares Competitors||382||1577||1329||78||2.33|
Eastern Bankshares presently has a consensus price target of $16.00, indicating a potential downside of 23.33%. As a group, “Federal savings institutions” companies have a potential downside of 4.63%. Given Eastern Bankshares’ competitors higher probable upside, analysts clearly believe Eastern Bankshares has less favorable growth aspects than its competitors.
Earnings & Valuation
This table compares Eastern Bankshares and its competitors revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Eastern Bankshares||$591.70 million||$22.74 million||35.37|
|Eastern Bankshares Competitors||$844.11 million||$84.23 million||16.39|
Eastern Bankshares’ competitors have higher revenue and earnings than Eastern Bankshares. Eastern Bankshares is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
This table compares Eastern Bankshares and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Eastern Bankshares Competitors||15.44%||7.31%||0.80%|
Eastern Bankshares competitors beat Eastern Bankshares on 10 of the 13 factors compared.
Eastern Bankshares Company Profile
Eastern Bankshares, Inc. operates as the bank holding company for Eastern Bank that provides commercial banking products and services primarily to retail, commercial, and small business customers. It operates in two segments, Banking Business and Insurance Agency Business. The company provides interest-bearing and non interest-bearing checking deposits, money market deposits, savings deposits, and certificates of deposits, as well as debit and credit cards. It also offers commercial and industrial loans, commercial real estate and construction loans, business banking loans, residential real estate loans, and home equity and other consumer loans, as well as mortgage and personal loans, auto loans, preferred term loans, small business administration loans, and reserve lines of credit. In addition, the company provides cash reserves, cash management, merchant, escrow express, government banking, international banking, interest on lawyers trust accounts, pension planning, and business telephone banking services, as well as products and services for not-for-profit and healthcare. Further, it offers trust and investment products and services; community development and asset-based lending services; financial planning, portfolio management, wealth management, private banking, and fiduciary products; and electronic banking and foreign exchange services, as well as various insurance products. As of April 1, 2021, the company had approximately 110 locations in eastern Massachusetts, southern and coastal New Hampshire, and Rhode Island. Eastern Bankshares, Inc. was founded in 1818 and is headquartered in Boston, Massachusetts.
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