Alerus Financial (ALRS) & Its Rivals Head-To-Head Review

Alerus Financial (NASDAQ: ALRS) is one of 159 publicly-traded companies in the “National commercial banks” industry, but how does it weigh in compared to its peers? We will compare Alerus Financial to related companies based on the strength of its profitability, earnings, analyst recommendations, risk, dividends, valuation and institutional ownership.

Dividends

Alerus Financial pays an annual dividend of $0.60 per share and has a dividend yield of 3.3%. Alerus Financial pays out 31.4% of its earnings in the form of a dividend. As a group, “National commercial banks” companies pay a dividend yield of 3.9% and pay out 30.9% of their earnings in the form of a dividend. Alerus Financial has increased its dividend for 1 consecutive years. Alerus Financial lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings and Valuation

This table compares Alerus Financial and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Alerus Financial $207.49 million $29.54 million 9.55
Alerus Financial Competitors $7.71 billion $1.61 billion 7.79

Alerus Financial’s peers have higher revenue and earnings than Alerus Financial. Alerus Financial is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of recent ratings for Alerus Financial and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alerus Financial 0 1 0 0 2.00
Alerus Financial Competitors 2695 7625 6161 322 2.24

Alerus Financial currently has a consensus price target of $21.00, indicating a potential upside of 15.07%. As a group, “National commercial banks” companies have a potential upside of 37.33%. Given Alerus Financial’s peers stronger consensus rating and higher probable upside, analysts clearly believe Alerus Financial has less favorable growth aspects than its peers.

Insider and Institutional Ownership

35.9% of Alerus Financial shares are owned by institutional investors. Comparatively, 50.5% of shares of all “National commercial banks” companies are owned by institutional investors. 8.3% of Alerus Financial shares are owned by company insiders. Comparatively, 9.4% of shares of all “National commercial banks” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Alerus Financial and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alerus Financial 14.07% 10.83% 1.27%
Alerus Financial Competitors 15.37% 8.28% 0.89%

Summary

Alerus Financial peers beat Alerus Financial on 11 of the 14 factors compared.

About Alerus Financial

Alerus Financial Corporation, through its subsidiary Alerus Financial, National Association, provides various financial services to businesses and consumers in the United States. The company operates through four segments: Banking, Retirement and Benefit Services, Wealth Management, and Mortgage. It offers various deposit products and services, including demand deposits, checking, interest-bearing transaction accounts, money market accounts, time and savings deposits, and certificates of deposit; and treasury management products, including electronic receivables management, remote deposit capture, cash vault services, merchant services, and other cash management services. The company also provides commercial lending products, such as commercial loans, business term loans, lines of credit, and commercial real estate loans, as well as construction and land development loans; consumer lending products, including residential first mortgage loans; and installment loans and lines of credit. In addition, it offers retirement plan administration and investment advisory services, employee stock ownership plan, fiduciary services, payroll, health savings accounts, and other benefit services; and wealth management services, such as financial planning, investment management, personal and corporate trust services, estate administration, and custody services. Further, the company provides debit and credit cards, online banking, mobile banking/wallet, private banking, payroll accounts, flex spending accounts, administration, and government health insurance program services. The company was formerly known as First National Bank North Dakota and changed its name to Alerus Financial Corporation in 2000. Alerus Financial Corporation was founded in 1879 and is headquartered in Grand Forks, North Dakota.

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