ServisFirst Bancshares (SFBS) vs. Its Rivals Critical Survey

ServisFirst Bancshares (NASDAQ: SFBS) is one of 199 public companies in the “Commercial Banks” industry, but how does it weigh in compared to its rivals? We will compare ServisFirst Bancshares to similar companies based on the strength of its earnings, dividends, analyst recommendations, profitability, institutional ownership, risk and valuation.

Volatility & Risk

ServisFirst Bancshares has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500. Comparatively, ServisFirst Bancshares’ rivals have a beta of 0.75, meaning that their average share price is 25% less volatile than the S&P 500.

Dividends

ServisFirst Bancshares pays an annual dividend of $0.20 per share and has a dividend yield of 0.5%. ServisFirst Bancshares pays out 11.5% of its earnings in the form of a dividend. As a group, “Commercial Banks” companies pay a dividend yield of 1.8% and pay out 35.4% of their earnings in the form of a dividend.

Valuation and Earnings

This table compares ServisFirst Bancshares and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
ServisFirst Bancshares $231.01 million $81.47 million 23.45
ServisFirst Bancshares Competitors $343.96 million $72.97 million 21.52

ServisFirst Bancshares’ rivals have higher revenue, but lower earnings than ServisFirst Bancshares. ServisFirst Bancshares 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.

Institutional and Insider Ownership

43.2% of ServisFirst Bancshares shares are held by institutional investors. Comparatively, 47.3% of shares of all “Commercial Banks” companies are held by institutional investors. 14.0% of ServisFirst Bancshares shares are held by insiders. Comparatively, 11.8% of shares of all “Commercial Banks” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares ServisFirst Bancshares and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ServisFirst Bancshares 35.08% 16.84% 1.46%
ServisFirst Bancshares Competitors 20.45% 8.69% 0.93%

Analyst Recommendations

This is a summary of current ratings and price targets for ServisFirst Bancshares and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ServisFirst Bancshares 0 2 0 0 2.00
ServisFirst Bancshares Competitors 367 2899 2345 68 2.37

ServisFirst Bancshares currently has a consensus target price of $37.50, suggesting a potential downside of 8.11%. As a group, “Commercial Banks” companies have a potential upside of 3.69%. Given ServisFirst Bancshares’ rivals stronger consensus rating and higher possible upside, analysts plainly believe ServisFirst Bancshares has less favorable growth aspects than its rivals.

Summary

ServisFirst Bancshares beats its rivals on 8 of the 15 factors compared.

ServisFirst Bancshares Company Profile

ServisFirst Bancshares, Inc. is a bank holding company whose business is conducted by its subsidiary, ServisFirst Bank (the Bank). The Company’s principal business is to accept deposits from the public and to make loans and other investments. The Company, through its bank, originates commercial, consumer and other loans; accept deposits; provides electronic banking services, such as online and mobile banking, including remote deposit capture, deliver treasury and cash management services, and provides correspondent banking services to other financial institutions. The Company’s principal sources of funds for loans and investments are demand, time, savings and other deposits and the amortization and prepayment of loans and borrowings. The Company offers a range of products and services, including round the clock telephone banking, direct deposit, Internet banking, mobile banking, traveler’s checks, safe deposit boxes, attorney trust accounts and automatic account transfers.

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