Head-To-Head Contrast: S&T Bancorp (STBA) versus Its Rivals

S&T Bancorp (NASDAQ:STBA) is one of 919 public companies in the “Banks” industry, but how does it weigh in compared to its rivals? We will compare S&T Bancorp to similar businesses based on the strength of its valuation, profitability, earnings, analyst recommendations, institutional ownership, dividends and risk.

Insider & Institutional Ownership

65.2% of S&T Bancorp shares are held by institutional investors. Comparatively, 48.0% of shares of all “Banks” companies are held by institutional investors. 1.2% of S&T Bancorp shares are held by insiders. Comparatively, 9.7% of shares of all “Banks” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations for S&T Bancorp and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
S&T Bancorp	0	6	2	0	2.25
S&T Bancorp Competitors	7482	30219	27791	1473	2.35

S&T Bancorp currently has a consensus price target of $52.20, suggesting a potential upside of 2.80%. As a group, “Banks” companies have a potential upside of 16.82%. Given S&T Bancorp’s rivals stronger consensus rating and higher probable upside, analysts plainly believe S&T Bancorp has less favorable growth aspects than its rivals.

Earnings & Valuation

This table compares S&T Bancorp and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
S&T Bancorp	$568.51 million	$134.23 million	12.89
S&T Bancorp Competitors	$9.95 billion	$2.42 billion	20.28

S&T Bancorp’s rivals have higher revenue and earnings than S&T Bancorp. S&T Bancorp 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.

Dividends

S&T Bancorp pays an annual dividend of $1.48 per share and has a dividend yield of 2.9%. S&T Bancorp pays out 37.6% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.3% and pay out 28.9% of their earnings in the form of a dividend. S&T Bancorp has raised its dividend for 13 consecutive years. S&T Bancorp lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Risk & Volatility

S&T Bancorp has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500. Comparatively, S&T Bancorp’s rivals have a beta of 0.61, suggesting that their average share price is 39% less volatile than the S&P 500.

Profitability

This table compares S&T Bancorp and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
S&T Bancorp	25.10%	10.11%	1.46%
S&T Bancorp Competitors	15.66%	9.44%	0.93%

Summary

S&T Bancorp rivals beat S&T Bancorp on 10 of the 15 factors compared.

S&T Bancorp Company Profile

S&T Bancorp, Inc. is a bank holding company, which engages in the provision of consumer, commercial, and small business banking services. It operates through the following segments: Commercial Real Estate, Commercial and Industrial, Commercial Construction, Business Banking, Consumer Real Estate, and Other Consumer. The Commercial Real Estate segment includes both owner-occupied properties and investment properties for various purposes such as hotels, retail, multifamily and health care. The Commercial and Industrial segment focuses on the companies or manufacturers for the purpose of production, operating capacity, accounts receivable, inventory or equipment financing. The Commercial Construction segment refers to the finance construction of buildings or other structures, as well as to finance the acquisition and development of raw land for various purposes. The Business Banking segment is made to small businesses that are standard, non-complex products evaluated through a streamlined credit approval process that has been designed to maximize efficiency while maintaining high credit quality standards. The Consumer Real Estate segment offers first and second liens such as 1-4 family residential mortgages, home equity loans and home equity lines of credit. The Other Consumer segment consists of individuals that may be secured by assets other than 1-4 family residences, as well as unsecured loans. The company was founded on March 17, 1983 and is headquartered in Indiana, PA.