Comparing Columbia Banking System (COLB) & Pinnacle Financial Partners (PNFP)

Columbia Banking System (NASDAQ: COLB) and Pinnacle Financial Partners (NASDAQ:PNFP) are both mid-cap financials companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, risk, valuation, earnings, analyst recommendations, profitability and dividends.

Analyst Ratings

This is a summary of current ratings and target prices for Columbia Banking System and Pinnacle Financial Partners, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Columbia Banking System 0 2 2 0 2.50
Pinnacle Financial Partners 0 1 5 0 2.83

Columbia Banking System currently has a consensus price target of $46.75, indicating a potential upside of 4.38%. Pinnacle Financial Partners has a consensus price target of $75.00, indicating a potential upside of 9.41%. Given Pinnacle Financial Partners’ stronger consensus rating and higher probable upside, analysts clearly believe Pinnacle Financial Partners is more favorable than Columbia Banking System.

Profitability

This table compares Columbia Banking System and Pinnacle Financial Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Columbia Banking System 27.72% 9.93% 1.33%
Pinnacle Financial Partners 27.41% 7.36% 1.18%

Dividends

Columbia Banking System pays an annual dividend of $0.88 per share and has a dividend yield of 2.0%. Pinnacle Financial Partners pays an annual dividend of $0.56 per share and has a dividend yield of 0.8%. Columbia Banking System pays out 40.2% of its earnings in the form of a dividend. Pinnacle Financial Partners pays out 17.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Volatility & Risk

Columbia Banking System has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500. Comparatively, Pinnacle Financial Partners has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500.

Valuation & Earnings

This table compares Columbia Banking System and Pinnacle Financial Partners’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Columbia Banking System $426.05 million 7.68 $104.86 million $2.19 20.45
Pinnacle Financial Partners $484.61 million 10.99 $127.22 million $3.24 21.16

Pinnacle Financial Partners has higher revenue and earnings than Columbia Banking System. Columbia Banking System is trading at a lower price-to-earnings ratio than Pinnacle Financial Partners, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

76.2% of Columbia Banking System shares are owned by institutional investors. Comparatively, 71.8% of Pinnacle Financial Partners shares are owned by institutional investors. 1.2% of Columbia Banking System shares are owned by insiders. Comparatively, 5.4% of Pinnacle Financial Partners shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Pinnacle Financial Partners beats Columbia Banking System on 11 of the 16 factors compared between the two stocks.

Columbia Banking System Company Profile

Columbia Banking System, Inc. (Columbia) is a bank holding company for Columbia State Bank (the Bank) and Columbia Trust Company (Columbia Trust). The Company provides a range of banking services to small and medium-sized businesses, professionals and individuals. It offers products and services, which include Personal Banking, Business Banking and Wealth Management. Its Personal Banking products and services include Checking and Saving Accounts; Consumer Lending; Digital Banking; Residential Lending, and VISA Card Services. Its Business Banking products and services include Agricultural Lending; Commercial and Industrial Lending; International Banking; Merchant Card Services; Municipal Lending; Real Estate and Real Estate Construction Lending; Remote Deposit Capture; Small Business Administration (SBA) Lending; Small Business Services, and Treasury Management. Its Wealth Management products and services include Investment Services, Private Banking and Professional Banking.

Pinnacle Financial Partners Company Profile

Pinnacle Financial Partners, Inc. is a bank holding company. The Company operates through its subsidiary, Pinnacle Bank. The Company operates as a community bank primarily in the urban markets of Nashville, Knoxville, Memphis and Chattanooga, Tennessee and other counties. It provides the personalized service associated with small community banks, while seeking to offer the products and services, such as investments and treasury management. Pinnacle Bank offers an array of convenience-centered products and services, including round the clock telephone and Internet banking, mobile banking, debit and credit cards, direct deposit, remote deposit and cash management services for small- to medium-sized businesses. In addition, Pinnacle Bank is associated with a network of automated teller machines of other financial institutions that its clients are able to use throughout Tennessee and other regions.

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