VersaBank (NASDAQ:VBNK – Get Free Report) is one of 920 publicly-traded companies in the “Banks” industry, but how does it contrast to its rivals? We will compare VersaBank to related businesses based on the strength of its analyst recommendations, dividends, institutional ownership, earnings, profitability, valuation and risk.
Earnings & Valuation
This table compares VersaBank and its rivals top-line revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| VersaBank | $148.71 million | $20.32 million | 29.52 |
| VersaBank Competitors | $251.01 billion | $2.41 billion | 19.24 |
VersaBank’s rivals have higher revenue and earnings than VersaBank. VersaBank is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
Profitability
This table compares VersaBank and its rivals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| VersaBank | 9.92% | 8.66% | 0.75% |
| VersaBank Competitors | 15.24% | 9.38% | 0.92% |
Institutional and Insider Ownership
56.9% of VersaBank shares are owned by institutional investors. Comparatively, 47.8% of shares of all “Banks” companies are owned by institutional investors. 9.8% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Dividends
VersaBank pays an annual dividend of $0.07 per share and has a dividend yield of 0.3%. VersaBank pays out 9.2% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.2% and pay out 29.0% of their earnings in the form of a dividend.
Volatility & Risk
VersaBank has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500. Comparatively, VersaBank’s rivals have a beta of 0.51, suggesting that their average stock price is 49% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and price targets for VersaBank and its rivals, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| VersaBank | 0 | 1 | 3 | 0 | 2.75 |
| VersaBank Competitors | 7449 | 30119 | 27671 | 1445 | 2.35 |
VersaBank currently has a consensus target price of $24.00, suggesting a potential upside of 6.98%. As a group, “Banks” companies have a potential upside of 14.83%. Given VersaBank’s rivals higher possible upside, analysts clearly believe VersaBank has less favorable growth aspects than its rivals.
Summary
VersaBank rivals beat VersaBank on 9 of the 15 factors compared.
VersaBank Company Profile
VersaBank provides various banking products and services in Canada and the United States. It offers deposit products, such as web-based chequing accounts, guaranteed investment certificates, registered retirement savings plans, and tax-free savings accounts, as well as deposit insurance products. The company also provides lending services, including point of sale financing that covers purchasing loan and lease receivables from finance companies operating in various industries; commercial banking services comprising commercial real estate, public sector/infrastructure financing, and condominium financing; and residential mortgages. In addition, it offers cybersecurity services. The company was formerly known as Pacific & Western Bank of Canada and changed its name to VersaBank in May 2016. VersaBank was incorporated in 1979 and is headquartered in London, Canada.
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