National Bank (NBHC) & Its Rivals Critical Analysis

National Bank (NYSE: NBHC) is one of 291 publicly-traded companies in the “Banks” industry, but how does it weigh in compared to its competitors? We will compare National Bank to related businesses based on the strength of its analyst recommendations, dividends, risk, earnings, institutional ownership, profitability and valuation.

Volatility and Risk

National Bank has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500. Comparatively, National Bank’s competitors have a beta of 0.79, indicating that their average stock price is 21% less volatile than the S&P 500.

Dividends

National Bank pays an annual dividend of $0.36 per share and has a dividend yield of 1.1%. National Bank pays out 29.0% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 1.9% and pay out 35.5% of their earnings in the form of a dividend. National Bank has increased its dividend for 2 consecutive years.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for National Bank and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
National Bank 0 5 1 0 2.17
National Bank Competitors 2357 8415 8358 359 2.34

National Bank currently has a consensus price target of $35.40, indicating a potential upside of 5.42%. As a group, “Banks” companies have a potential downside of 11.97%. Given National Bank’s higher possible upside, analysts clearly believe National Bank is more favorable than its competitors.

Profitability

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

Net Margins Return on Equity Return on Assets
National Bank 17.13% 6.40% 0.74%
National Bank Competitors 18.60% 8.24% 0.93%

Insider and Institutional Ownership

95.6% of National Bank shares are owned by institutional investors. Comparatively, 52.0% of shares of all “Banks” companies are owned by institutional investors. 7.6% of National Bank 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, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
National Bank $200.48 million $23.06 million 27.08
National Bank Competitors $5.70 billion $854.59 million 425.00

National Bank’s competitors have higher revenue and earnings than National Bank. National Bank 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

National Bank competitors beat National Bank on 12 of the 15 factors compared.

About National Bank

National Bank Holdings Corporation (NBH) is a bank holding company. Through Bank Midwest, N.A. (Bank Midwest), NBH’s primary business is to offer a range of products and financial services to both its commercial and consumer customers, located in Kansas, Missouri and Colorado. The Company offers an array of lending products to cater to the customers’ needs, including, but not limited to, small business loans, equipment loans, term loans, asset-backed loans, letters of credit, commercial lines of credit, residential mortgage loans, home equity and consumer loans. It also offers traditional depository products, including commercial and consumer checking accounts, non-interest-bearing demand accounts, money market deposit accounts, savings accounts and time deposit accounts and cash management services. As of December 31, 2011, it operated a network of 103 full-service banking centers, with the majority of those banking centers located in the Kansas City region and Colorado.

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