Critical Analysis: Guaranty Bancorp (GBNK) & Its Rivals

Guaranty Bancorp (NASDAQ: GBNK) is one of 314 publicly-traded companies in the “Banks” industry, but how does it compare to its competitors? We will compare Guaranty Bancorp to related businesses based on the strength of its earnings, risk, analyst recommendations, profitability, dividends, institutional ownership and valuation.

Profitability

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

Net Margins Return on Equity Return on Assets
Guaranty Bancorp 24.17% 11.20% 1.19%
Guaranty Bancorp Competitors 18.44% 8.29% 0.93%

Institutional & Insider Ownership

70.2% of Guaranty Bancorp shares are held by institutional investors. Comparatively, 52.3% of shares of all “Banks” companies are held by institutional investors. 8.4% of Guaranty Bancorp shares are held by company insiders. Comparatively, 10.4% of shares of all “Banks” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Guaranty Bancorp pays an annual dividend of $0.50 per share and has a dividend yield of 1.7%. Guaranty Bancorp pays out 37.6% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 1.9% and pay out 34.8% of their earnings in the form of a dividend. Guaranty Bancorp lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Risk & Volatility

Guaranty Bancorp has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, Guaranty Bancorp’s competitors have a beta of 0.78, meaning that their average share price is 22% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Guaranty Bancorp and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Guaranty Bancorp 0 3 2 0 2.40
Guaranty Bancorp Competitors 2147 8484 8537 332 2.36

Guaranty Bancorp presently has a consensus target price of $29.13, indicating a potential downside of 2.59%. As a group, “Banks” companies have a potential downside of 5.87%. Given Guaranty Bancorp’s stronger consensus rating and higher probable upside, research analysts plainly believe Guaranty Bancorp is more favorable than its competitors.

Earnings & Valuation

This table compares Guaranty Bancorp and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Guaranty Bancorp $119.11 million $24.72 million 22.48
Guaranty Bancorp Competitors $5.49 billion $825.32 million 383.47

Guaranty Bancorp’s competitors have higher revenue and earnings than Guaranty Bancorp. Guaranty Bancorp 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.

Summary

Guaranty Bancorp competitors beat Guaranty Bancorp on 8 of the 15 factors compared.

About Guaranty Bancorp

Guaranty Bancorp is a bank holding company. The Company’s bank subsidiary is Guaranty Bank and Trust Company (the Bank). As of December 31, 2016, the Company operated 32 branches and two investment management firms, Private Capital Management LLC (PCM) and Cherry Hills Investment Advisors Inc. (CHIA), in Colorado through the Bank. The Bank provides banking and other financial services, including commercial and industrial loans, real estate loans, construction loans, consumer loans and agriculture loans across its targeted Colorado markets to consumers and small to medium-sized businesses, including the owners and employees of those businesses. Along with loans and depository services, the Bank also provides wealth management solutions, including trust and investment management services. The Bank’s commercial and industrial loan portfolio consists of operating loans secured by business assets.

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