Critical Review: Green Bancorp (NASDAQ:GNBC) and Its Rivals

Green Bancorp (NASDAQ: GNBC) is one of 201 publicly-traded companies in the “Commercial Banks” industry, but how does it weigh in compared to its peers? We will compare Green Bancorp to similar companies based on the strength of its profitability, valuation, analyst recommendations, institutional ownership, earnings, risk and dividends.

Insider and Institutional Ownership

63.3% of Green Bancorp shares are owned by institutional investors. Comparatively, 46.9% of shares of all “Commercial Banks” companies are owned by institutional investors. 16.2% of Green Bancorp shares are owned by company insiders. Comparatively, 11.8% of shares of all “Commercial Banks” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Green Bancorp and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Green Bancorp $161.67 million -$970,000.00 25.44
Green Bancorp Competitors $338.81 million $71.86 million 21.67

Green Bancorp’s peers have higher revenue and earnings than Green Bancorp. Green Bancorp 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.

Profitability

This table compares Green Bancorp and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Green Bancorp 18.70% 7.70% 0.83%
Green Bancorp Competitors 20.38% 8.67% 0.92%

Analyst Recommendations

This is a summary of recent ratings and price targets for Green Bancorp and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Green Bancorp 0 2 1 0 2.33
Green Bancorp Competitors 507 3087 2473 87 2.35

Green Bancorp currently has a consensus price target of $24.67, suggesting a potential upside of 5.41%. As a group, “Commercial Banks” companies have a potential upside of 2.50%. Given Green Bancorp’s higher possible upside, research analysts plainly believe Green Bancorp is more favorable than its peers.

Risk and Volatility

Green Bancorp has a beta of 2.11, meaning that its share price is 111% more volatile than the S&P 500. Comparatively, Green Bancorp’s peers have a beta of 0.75, meaning that their average share price is 25% less volatile than the S&P 500.

Summary

Green Bancorp peers beat Green Bancorp on 8 of the 13 factors compared.

Green Bancorp Company Profile

Green Bancorp, Inc. is a bank holding company. As of December 31, 2016, the Company’s subsidiary, Green Bank, N.A., a nationally chartered commercial bank, provided commercial and private banking services primarily to Texas based customers through 22 full service branches in the Houston and Dallas metropolitan statistical areas (MSAs) and other markets. The Company provides banking services to a range of customers. It offers a suite of online banking solutions, including access to account balances, online transfers, online bill payment and electronic delivery of customer statements, as well as extended drive through hours, automated teller machines (ATMs), Bank at Work and banking by telephone, mail and personal appointment. The Company also offers debit cards, night depository, direct deposit, cashier’s checks and letters of credit, as well as treasury management services, wire transfer services and automated clearing house (ACH) services.

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