Critical Review: Columbia Banking System (NASDAQ:COLB) versus Bank7 (NASDAQ:BSVN)

Columbia Banking System (NASDAQ:COLBGet Free Report) and Bank7 (NASDAQ:BSVNGet Free Report) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, risk, dividends and profitability.

Risk & Volatility

Columbia Banking System has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500. Comparatively, Bank7 has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for Columbia Banking System and Bank7, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Columbia Banking System 0 10 3 0 2.23
Bank7 0 1 2 0 2.67

Columbia Banking System presently has a consensus price target of $27.12, indicating a potential downside of 4.42%. Bank7 has a consensus price target of $37.00, indicating a potential downside of 10.56%. Given Columbia Banking System’s higher probable upside, equities research analysts clearly believe Columbia Banking System is more favorable than Bank7.

Dividends

Columbia Banking System pays an annual dividend of $1.44 per share and has a dividend yield of 5.1%. Bank7 pays an annual dividend of $0.96 per share and has a dividend yield of 2.3%. Columbia Banking System pays out 62.3% of its earnings in the form of a dividend. Bank7 pays out 25.3% 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.

Insider and Institutional Ownership

92.5% of Columbia Banking System shares are owned by institutional investors. Comparatively, 23.5% of Bank7 shares are owned by institutional investors. 0.6% of Columbia Banking System shares are owned by insiders. Comparatively, 44.0% of Bank7 shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Columbia Banking System and Bank7″s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Columbia Banking System $2.74 billion 2.17 $348.71 million $2.31 12.28
Bank7 $130.79 million 2.95 $28.27 million $3.80 10.89

Columbia Banking System has higher revenue and earnings than Bank7. Bank7 is trading at a lower price-to-earnings ratio than Columbia Banking System, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Columbia Banking System and Bank7’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Columbia Banking System 16.15% 10.13% 0.98%
Bank7 24.22% 19.75% 2.05%

Summary

Bank7 beats Columbia Banking System on 9 of the 16 factors compared between the two stocks.

About Columbia Banking System

(Get Free Report)

Columbia Banking System, Inc. operates as the holding company of Umpqua Bank that provides banking, private banking, mortgage, and other financial services in the United States. The company offers deposit products, including business, non-interest bearing checking, interest-bearing checking and savings, money market, and certificate of deposit accounts; and insured cash sweep and other investment sweep solutions. It also provides commercial lending products, such as commercial lines of credit and term loans, accounts receivable and inventory financing, international trade finance, commercial property loans, multifamily loans, equipment loans, commercial equipment leases, real estate construction loans and permanent financing, and small business administration program financing, as well as capital markets. In addition, the company offers wealth management comprising financial planning, investment, trust, and insurance; treasury management, which includes digital and mobile banking solutions, ACH, wires, positive pay, remote deposit capture, integrated payments, integrated receivables, lockbox, cash vault, real-time payments, commercial card, and foreign exchange and international banking related products, as well as merchant services; and brokerage services, residential real estate loans and consumer loans. It serves its products to corporate, institutional, small business, and individual customers. The company was founded in 1953 and is headquartered in Tacoma, Washington.

About Bank7

(Get Free Report)

Bank7 Corp. operates as a bank holding company for Bank7 that provides banking and financial services to individual and corporate customers. It offers commercial deposit, commercial checking, money market, and other deposit accounts; and retail deposit services, such as certificates of deposit, money market accounts, checking accounts, negotiable order of withdrawal accounts, savings accounts, and automated teller machine access. The company also provides commercial real estate, hospitality, energy, and commercial and industrial lending services; consumer lending services to individuals for personal and household purposes comprising residential real estate loans and mortgage banking services, personal lines of credit, loans for the purchase of automobiles, and other installment loans, as well as secured and unsecured term loans and home improvement loans. It operates through a network of full-service branches in Oklahoma, the Dallas/Fort Worth, Texas metropolitan area, and Kansas. The company was formerly known as Haines Financial Corp. Bank7 Corp. was founded in 1901 and is headquartered in Oklahoma City, Oklahoma.

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