Analyzing Northwest Bancshares (NWBI) and Its Peers

Northwest Bancshares (NASDAQ: NWBI) is one of 310 public companies in the “Banks” industry, but how does it weigh in compared to its competitors? We will compare Northwest Bancshares to similar companies based on the strength of its valuation, dividends, profitability, analyst recommendations, institutional ownership, risk and earnings.

Earnings & Valuation

This table compares Northwest Bancshares and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Northwest Bancshares $430.99 million $49.66 million 18.05
Northwest Bancshares Competitors $5.52 billion $831.28 million 408.83

Northwest Bancshares’ competitors have higher revenue and earnings than Northwest Bancshares. Northwest Bancshares is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Northwest Bancshares and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Northwest Bancshares 20.59% 7.54% 0.94%
Northwest Bancshares Competitors 18.53% 8.24% 0.92%

Insider and Institutional Ownership

64.5% of Northwest Bancshares shares are owned by institutional investors. Comparatively, 51.9% of shares of all “Banks” companies are owned by institutional investors. 2.0% of Northwest Bancshares shares are owned by company insiders. Comparatively, 10.4% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

Northwest Bancshares pays an annual dividend of $0.64 per share and has a dividend yield of 3.8%. Northwest Bancshares pays out 68.1% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 1.9% and pay out 35.1% of their earnings in the form of a dividend.

Risk & Volatility

Northwest Bancshares has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500. Comparatively, Northwest Bancshares’ competitors have a beta of 0.80, meaning that their average stock price is 20% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Northwest Bancshares and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Northwest Bancshares 0 3 0 0 2.00
Northwest Bancshares Competitors 2417 8752 8769 369 2.35

Northwest Bancshares presently has a consensus target price of $17.00, suggesting a potential upside of 0.18%. As a group, “Banks” companies have a potential downside of 11.65%. Given Northwest Bancshares’ higher probable upside, analysts plainly believe Northwest Bancshares is more favorable than its competitors.

Summary

Northwest Bancshares competitors beat Northwest Bancshares on 10 of the 15 factors compared.

About Northwest Bancshares

Northwest Bancshares, Inc. (Northwest) is a savings and loan holding company. The Company’s principal business consists of attracting deposits and making loans secured by various types of collateral, including real estate and other assets in the markets in which it operates. Its segments include Community Banking and Consumer Finance. The Community Banking segment includes its savings bank subsidiary, Northwest Bank, as well as the subsidiaries of the savings bank that provide similar products and services. The bank is a community-oriented institution that offers a range of personal and business deposit and loan products, including mortgage, consumer, and commercial loans, as well as trust, investment management, actuarial and benefit plan administration, and brokerage services typically offered by a full service financial institution. The Consumer Finance segment comprises Northwest Consumer Discount Company, a subsidiary of Northwest Bank.

Receive News & Ratings for Northwest Bancshares Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Northwest Bancshares and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply