Critical Contrast: Shore Bancshares (SHBI) versus Its Rivals

Shore Bancshares (NASDAQ: SHBI) is one of 310 publicly-traded companies in the “Banks” industry, but how does it weigh in compared to its rivals? We will compare Shore Bancshares to related businesses based on the strength of its dividends, valuation, institutional ownership, analyst recommendations, earnings, risk and profitability.

Dividends

Shore Bancshares pays an annual dividend of $0.28 per share and has a dividend yield of 1.6%. Shore Bancshares pays out 31.8% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 1.9% and pay out 34.9% of their earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current ratings and target prices for Shore Bancshares and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Shore Bancshares 0 0 0 0 N/A
Shore Bancshares Competitors 2174 8471 8558 332 2.36

As a group, “Banks” companies have a potential downside of 6.38%. Given Shore Bancshares’ rivals higher possible upside, analysts clearly believe Shore Bancshares has less favorable growth aspects than its rivals.

Institutional and Insider Ownership

68.5% of Shore Bancshares shares are owned by institutional investors. Comparatively, 52.2% of shares of all “Banks” companies are owned by institutional investors. 2.4% of Shore Bancshares 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Shore Bancshares 17.61% 7.20% 0.90%
Shore Bancshares Competitors 18.45% 8.26% 0.93%

Risk and Volatility

Shore Bancshares has a beta of 0.13, meaning that its stock price is 87% less volatile than the S&P 500. Comparatively, Shore Bancshares’ rivals have a beta of 0.78, meaning that their average stock price is 22% less volatile than the S&P 500.

Earnings and Valuation

This table compares Shore Bancshares and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Shore Bancshares $57.30 million $9.63 million 20.16
Shore Bancshares Competitors $5.50 billion $827.87 million 385.29

Shore Bancshares’ rivals have higher revenue and earnings than Shore Bancshares. Shore 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

Shore Bancshares rivals beat Shore Bancshares on 10 of the 12 factors compared.

About Shore Bancshares

Shore Bancshares, Inc. is a financial holding company. The Company acts as the parent company to several financial institution and insurance entities. The Company has two business segments: Community Banking, and Insurance Products and Services. Its Community Banking segment provides services to consumers and small businesses on the Eastern Shore of Maryland and in Delaware. The Company is engaged in the banking business through CNB, a Maryland commercial bank with trust powers and The Talbot Bank of Easton, a Maryland commercial bank (the Banks). Its Insurance Products and Services segment provides a range of insurance products and services to businesses and consumers in the Company’s market areas. The Banks provide a range of commercial and consumer banking products and services to individuals, businesses, and other organizations in Kent County, Queen Anne’s County, Caroline County, Talbot County and Dorchester County in Maryland and in Kent County, Delaware.

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