Head to Head Contrast: Prosperity Bancshares (PB) vs. Its Rivals

Prosperity Bancshares (NYSE:PB) is one of 919 publicly-traded companies in the “Banks” industry, but how does it weigh in compared to its rivals? We will compare Prosperity Bancshares to similar companies based on the strength of its analyst recommendations, dividends, valuation, risk, earnings, profitability and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Prosperity Bancshares	26.99%	7.68%	1.45%
Prosperity Bancshares Competitors	15.66%	9.44%	0.93%

Volatility & Risk

Prosperity Bancshares has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500. Comparatively, Prosperity Bancshares’ rivals have a beta of 0.52, indicating that their average stock price is 48% less volatile than the S&P 500.

Dividends

Prosperity Bancshares pays an annual dividend of $2.40 per share and has a dividend yield of 3.3%. Prosperity Bancshares pays out 43.6% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.2% and pay out 28.9% of their earnings in the form of a dividend. Prosperity Bancshares has raised its dividend for 27 consecutive years. Prosperity Bancshares lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Prosperity Bancshares and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Prosperity Bancshares	2	6	7	1	2.44
Prosperity Bancshares Competitors	7464	30192	27759	1465	2.35

Prosperity Bancshares presently has a consensus price target of $78.36, indicating a potential upside of 7.29%. As a group, “Banks” companies have a potential upside of 15.55%. Given Prosperity Bancshares’ rivals higher probable upside, analysts clearly believe Prosperity Bancshares has less favorable growth aspects than its rivals.

Institutional & Insider Ownership

80.7% of Prosperity Bancshares shares are owned by institutional investors. Comparatively, 47.8% of shares of all “Banks” companies are owned by institutional investors. 4.0% of Prosperity Bancshares shares are owned by insiders. Comparatively, 9.8% of shares of all “Banks” companies are owned by 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 Prosperity Bancshares and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Prosperity Bancshares	$1.74 billion	$542.84 million	13.28
Prosperity Bancshares Competitors	$9.95 billion	$2.42 billion	17.38

Prosperity Bancshares’ rivals have higher revenue and earnings than Prosperity Bancshares. Prosperity Bancshares is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Prosperity Bancshares rivals beat Prosperity Bancshares on 8 of the 15 factors compared.

Prosperity Bancshares Company Profile

Prosperity Bancshares, Inc. operates as bank holding company for the Prosperity Bank that provides financial products and services to businesses and consumers. It accepts various deposit products, such as demand, savings, money market, and time accounts, as well as and certificates of deposit. The company also offers 1-4 family residential mortgage, commercial real estate and multifamily residential, commercial and industrial, agricultural, and non-real estate agricultural loans, as well as construction, land development, and other land loans; consumer loans, including automobile, recreational vehicle, boat, home improvement, personal, and deposit account collateralized loans; term loans and lines of credit; and consumer durables and home equity loans, as well as loans for working capital, business expansion, and purchase of equipment and machinery. In addition, it provides internet banking, mobile banking, trust and wealth management, retail brokerage, mortgage services, and treasury management, as well as debit and credit cards. The company was incorporated in 1983 and is headquartered in Houston, Texas.