Critical Survey: Wilshire Bancorp (NASDAQ:WIBC) versus Its Rivals

Wilshire Bancorp (NASDAQ: WIBC) is one of 211 public companies in the “Commercial Banks” industry, but how does it weigh in compared to its peers? We will compare Wilshire Bancorp to similar companies based on the strength of its analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.

Insider and Institutional Ownership

46.5% of shares of all “Commercial Banks” companies are held by institutional investors. 11.7% of shares of all “Commercial 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 Ratings

This is a breakdown of current ratings for Wilshire Bancorp and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wilshire Bancorp 0 0 0 0 N/A
Wilshire Bancorp Competitors 361 2851 2309 66 2.37

As a group, “Commercial Banks” companies have a potential upside of 9.01%. Given Wilshire Bancorp’s peers higher probable upside, analysts plainly believe Wilshire Bancorp has less favorable growth aspects than its peers.

Dividends

Wilshire Bancorp pays an annual dividend of $0.24 per share and has a dividend yield of 2.2%. Wilshire Bancorp pays out 32.9% of its earnings in the form of a dividend. As a group, “Commercial Banks” companies pay a dividend yield of 1.9% and pay out 35.0% of their earnings in the form of a dividend. Wilshire Bancorp is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Profitability

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

Net Margins Return on Equity Return on Assets
Wilshire Bancorp 35.54% 12.58% 1.45%
Wilshire Bancorp Competitors 20.65% 8.71% 0.93%

Valuation & Earnings

This table compares Wilshire Bancorp and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Wilshire Bancorp N/A N/A 14.71
Wilshire Bancorp Competitors $343.38 million $72.32 million 18.98

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

Summary

Wilshire Bancorp beats its peers on 5 of the 9 factors compared.

About Wilshire Bancorp

Wilshire Bancorp, Inc. (Wilshire) is a bank holding company, which offers a range of financial products and services primarily through its subsidiary, Wilshire Bank (the Bank), a California state-chartered commercial bank. The Bank has over 35 full-service branch offices in Southern California, Texas, Alabama, Georgia, New Jersey and the greater New York City metropolitan area. It also has approximately six loan production offices (LPOs) of which over four are utilized primarily for the origination of loans under the small business administration (SBA) lending program located in California, Colorado, Georgia and Washington, and approximately two are utilized primarily for the origination of residential mortgage loans located in Southern California. The Company has approximately $3.84 billion in total loans (net of deferred fees and including loans held-for-sale) and over $3.84 billion in deposits.

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