Comparing BancorpSouth (NYSE:BXS) and Its Peers

BancorpSouth (NYSE: BXS) is one of 315 public companies in the “Banks” industry, but how does it compare to its competitors? We will compare BancorpSouth to similar businesses based on the strength of its dividends, valuation, profitability, institutional ownership, earnings, analyst recommendations and risk.

Profitability

This table compares BancorpSouth and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BancorpSouth 19.59% 8.97% 1.03%
BancorpSouth Competitors 18.42% 8.29% 0.93%

Dividends

BancorpSouth pays an annual dividend of $0.56 per share and has a dividend yield of 1.6%. BancorpSouth pays out 33.9% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 1.9% and pay out 35.2% of their earnings in the form of a dividend. BancorpSouth has increased its dividend for 4 consecutive years.

Analyst Recommendations

This is a breakdown of current ratings for BancorpSouth and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BancorpSouth 0 9 1 0 2.10
BancorpSouth Competitors 2149 8491 8541 332 2.36

BancorpSouth currently has a consensus target price of $33.00, indicating a potential downside of 3.51%. As a group, “Banks” companies have a potential downside of 5.98%. Given BancorpSouth’s higher probable upside, equities analysts clearly believe BancorpSouth is more favorable than its competitors.

Valuation and Earnings

This table compares BancorpSouth and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
BancorpSouth $762.21 million $132.72 million 20.73
BancorpSouth Competitors $5.49 billion $825.32 million 378.72

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

Institutional & Insider Ownership

66.4% of BancorpSouth shares are owned by institutional investors. Comparatively, 52.3% of shares of all “Banks” companies are owned by institutional investors. 2.6% of BancorpSouth shares are owned by company insiders. Comparatively, 10.4% of shares of all “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.

Volatility and Risk

BancorpSouth has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500. Comparatively, BancorpSouth’s competitors have a beta of 0.79, indicating that their average share price is 21% less volatile than the S&P 500.

Summary

BancorpSouth competitors beat BancorpSouth on 8 of the 15 factors compared.

BancorpSouth Company Profile

BancorpSouth Bank is a financial holding company. The Company, through its principal bank subsidiary, conducts commercial banking and financial services operations in Alabama, Arkansas, Florida, Louisiana, Mississippi, Missouri, Tennessee, Texas and Illinois. The Company’s segments include Community Banking, Insurance Agencies, and General Corporate and Other. Its Community Banking segment provides a range of deposit products, commercial loans and consumer loans. Its Insurance Agencies segment serves as agents in the sale of commercial lines of insurance and full lines of property and casualty, life, health and employee benefits products and services. Its General Corporate and Other segment includes mortgage banking, trust services, credit card activities, investment services and other activities not allocated to the Community Banking or Insurance Agencies segments.

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