WesBanco (NASDAQ:WSBC – Get Free Report) and Investar (NASDAQ:ISTR – Get Free Report) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.
Dividends
WesBanco pays an annual dividend of $1.52 per share and has a dividend yield of 3.9%. Investar pays an annual dividend of $0.44 per share and has a dividend yield of 1.5%. WesBanco pays out 49.0% of its earnings in the form of a dividend. Investar pays out 19.3% 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. WesBanco has raised its dividend for 14 consecutive years and Investar has raised its dividend for 10 consecutive years. WesBanco is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings & Valuation
This table compares WesBanco and Investar”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| WesBanco | $1.44 billion | 2.59 | $223.10 million | $3.10 | 12.52 |
| Investar | $153.48 million | 2.68 | $22.90 million | $2.28 | 13.09 |
WesBanco has higher revenue and earnings than Investar. WesBanco is trading at a lower price-to-earnings ratio than Investar, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
WesBanco has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500. Comparatively, Investar has a beta of 0.46, meaning that its stock price is 54% less volatile than the S&P 500.
Profitability
This table compares WesBanco and Investar’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| WesBanco | 21.12% | 9.76% | 1.33% |
| Investar | 16.53% | 10.62% | 1.02% |
Analyst Ratings
This is a summary of recent recommendations for WesBanco and Investar, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| WesBanco | 0 | 2 | 3 | 1 | 2.83 |
| Investar | 0 | 2 | 1 | 0 | 2.33 |
WesBanco currently has a consensus target price of $40.25, suggesting a potential upside of 3.74%. Investar has a consensus target price of $31.50, suggesting a potential upside of 5.52%. Given Investar’s higher probable upside, analysts plainly believe Investar is more favorable than WesBanco.
Institutional and Insider Ownership
61.4% of WesBanco shares are held by institutional investors. Comparatively, 50.2% of Investar shares are held by institutional investors. 2.1% of WesBanco shares are held by company insiders. Comparatively, 10.6% of Investar shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
WesBanco beats Investar on 12 of the 18 factors compared between the two stocks.
About WesBanco
WesBanco, Inc. operates as the bank holding company for WesBanco Bank, Inc. that provides retail banking, corporate banking, personal and corporate trust, brokerage, mortgage banking, and insurance services to individuals and businesses in the United States. The company operates through two segments, Community Banking, and Trust and Investment Services. It offers commercial demand, individual demand, and time deposit accounts; commercial, mortgage and individual installment loans; retail loans, such as residential real estate mortgage loans, home equity lines of credit, and loans for other consumer purposes; installment loans to finance the purchase of automobiles, trucks, motorcycles, boats, and other recreational vehicles, as well as home equity installment loans, unsecured home improvement loans, and revolving lines of credit; and various non-traditional offerings, such as insurance and securities brokerage services. The company also provides trust services; and various alternative investment products, including mutual funds and annuities. In addition, it acts as an agency that specializes in property, casualty, life, and title insurance, as well as benefit plan sales and administration to personal and commercial clients; provides broker dealer and discount brokerage services; holds investment securities and loans; and holds and leases commercial real estate properties, as well as acts as an investment adviser to a family of mutual funds. WesBanco, Inc. was founded in 1870 and is headquartered in Wheeling, West Virginia.
About Investar
Investar Holding Corporation operates as the bank holding company for Investar Bank that provides a range of commercial banking products to individuals, professionals, and small to medium-sized businesses in south Louisiana, southeast Texas, and Alabama in the United States. The company offers various deposit products and services, such as savings, checking, money market, and individual retirement accounts, as well as various certificates of deposit; debit and credit cards; internet, mobile, and video banking services; and reciprocal deposit products. It also provides commercial real estate loans; commercial and industrial loans, including working capital lines of credit and equipment loans; loans for the construction of commercial projects, and single family residential and multifamily properties; one-to-four family residential real estate loans, such as second mortgage loans; and consumer loans, such as secured and unsecured installment and term loans, home equity loans and lines of credit, and auto loans, as well as loans for personal, family, and household purposes. In addition, the company offers treasury management products, including remote deposit capture, lockbox payment processing, virtual vault, positive pay, ACH origination, wire transfer, investment sweep accounts, and business internet banking services. Further, it provides various other banking services, such as cashiers' checks, direct deposit of payroll and social security checks, night depository, bank-by-mail, automated teller machines, electronic statements, interactive teller machines, online account opening, and mobile wallet payment services. Investar Holding Corporation was founded in 2006 and is headquartered in Baton Rouge, Louisiana.
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