Comparing SB Financial Group (NASDAQ:SBFG) and Wintrust Financial (NASDAQ:WTFC)

SB Financial Group (NASDAQ:SBFGGet Rating) and Wintrust Financial (NASDAQ:WTFCGet Rating) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, profitability, valuation and risk.

Insider & Institutional Ownership

55.3% of SB Financial Group shares are held by institutional investors. Comparatively, 89.7% of Wintrust Financial shares are held by institutional investors. 4.2% of SB Financial Group shares are held by insiders. Comparatively, 1.4% of Wintrust Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for SB Financial Group and Wintrust Financial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SB Financial Group 0 0 0 0 N/A
Wintrust Financial 0 0 6 1 3.14

Wintrust Financial has a consensus price target of $113.14, suggesting a potential upside of 43.95%. Given Wintrust Financial’s higher possible upside, analysts clearly believe Wintrust Financial is more favorable than SB Financial Group.

Dividends

SB Financial Group pays an annual dividend of $0.48 per share and has a dividend yield of 2.8%. Wintrust Financial pays an annual dividend of $1.36 per share and has a dividend yield of 1.7%. SB Financial Group pays out 24.8% of its earnings in the form of a dividend. Wintrust Financial pays out 19.1% 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. Wintrust Financial has raised its dividend for 9 consecutive years.

Profitability

This table compares SB Financial Group and Wintrust Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SB Financial Group 21.17% 9.00% 0.96%
Wintrust Financial 23.67% 10.95% 0.90%

Volatility and Risk

SB Financial Group has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500. Comparatively, Wintrust Financial has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500.

Earnings & Valuation

This table compares SB Financial Group and Wintrust Financial’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SB Financial Group $72.60 million 1.72 $18.28 million $1.94 8.93
Wintrust Financial $1.86 billion 2.56 $466.15 million $7.12 11.04

Wintrust Financial has higher revenue and earnings than SB Financial Group. SB Financial Group is trading at a lower price-to-earnings ratio than Wintrust Financial, indicating that it is currently the more affordable of the two stocks.

Summary

Wintrust Financial beats SB Financial Group on 14 of the 17 factors compared between the two stocks.

About SB Financial Group (Get Rating)

SB Financial Group, Inc. provides a range of commercial banking and wealth management services to individual and corporate customers primarily in Ohio, Indiana, and Michigan. It offers checking, savings, money market accounts, as well as time certificates of deposit; and commercial, consumer, agricultural, and residential mortgage loans. The company also provides automatic teller machine, personal and corporate trust, commercial leasing, bank credit card, safe deposit box rental, internet banking, private client group, and other personalized banking products and services; and various trust and financial services comprising asset management services for individuals and corporate employee benefit plans, as well as brokerage services. In addition, it sells insurance products to retail and commercial customers. As of December 31, 2021, the company operated a network of 22 banking centers in the Ohio counties of Allen, Defiance, Franklin, Fulton, Hancock, Lucas, Paulding, Wood, and Williams; and one banking center in Allen County, Indiana. It also operated five loan production offices in Franklin and Lucas Counties, Ohio; Hamilton and Steuben Counties, Indiana; and Monroe County, Michigan. The company was formerly known as Rurban Financial Corp. and changed its name to SB Financial Group, Inc. in April 2013. SB Financial Group, Inc. was incorporated in 1983 and is headquartered in Defiance, Ohio.

About Wintrust Financial (Get Rating)

Wintrust Financial Corporation operates as a financial holding company. It operates in three segments: Community Banking, Specialty Finance, and Wealth Management. The Community Banking segment offers non-interest bearing deposits, non-brokered interest-bearing transaction accounts, and savings and domestic time deposits; home equity, consumer, and real estate loans; safe deposit facilities; and automatic teller machine (ATM), online and mobile banking, and other services. It also engages in the retail origination and purchase of residential mortgages for sale into the secondary market; and provision of lending, deposits, and treasury management services to condominium, homeowner, and community associations, as well as asset-based lending for middle-market companies. In addition, this segment offers loan and deposit services to mortgage brokerage companies; lending to restaurant franchisees; direct leasing; small business administration loans; commercial mortgages and construction loans; and financial solutions. It provides personal and commercial banking services primarily to individuals, small to mid-sized businesses, local governmental units, and institutional clients. The Specialty Finance segment offers commercial and life insurance premiums financing for businesses and individuals; accounts receivable financing, value-added, and out-sourced administrative services; and other specialty finance services, as well as data processing of payrolls, billing, and cash management services to temporary staffing industry. The Wealth Management segment provides trust and investment, asset management, tax-deferred exchange, securities brokerage, and retirement plan services. The company operates 173 banking facilities and 228 ATMs in the Chicago metropolitan area, southern Wisconsin, northwest Indiana, and Florida. Wintrust Financial Corporation was founded in 1991 and is headquartered in Rosemont, Illinois.

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