Reviewing WesBanco (NASDAQ:WSBC) and Its Peers

WesBanco (NASDAQ: WSBC) is one of 311 public companies in the “Banks” industry, but how does it weigh in compared to its peers? We will compare WesBanco to similar companies based on the strength of its dividends, earnings, analyst recommendations, risk, profitability, institutional ownership and valuation.

Dividends

WesBanco pays an annual dividend of $1.04 per share and has a dividend yield of 2.5%. WesBanco pays out 48.4% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 1.9% and pay out 36.9% of their earnings in the form of a dividend.

Profitability

This table compares WesBanco and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WesBanco 22.43% 7.83% 1.09%
WesBanco Competitors 17.52% 8.42% 0.95%

Institutional & Insider Ownership

59.2% of WesBanco shares are held by institutional investors. Comparatively, 52.0% of shares of all “Banks” companies are held by institutional investors. 4.1% of WesBanco 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 large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk and Volatility

WesBanco has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.Comparatively, WesBanco’s peers have a beta of 0.79, indicating that their average stock price is 21% less volatile than the S&P 500.

Earnings and Valuation

This table compares WesBanco and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
WesBanco $421.26 million $94.48 million 19.33
WesBanco Competitors $5.62 billion $755.73 million 404.71

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

Analyst Ratings

This is a summary of current recommendations for WesBanco and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WesBanco 0 5 2 0 2.29
WesBanco Competitors 2478 9012 8955 373 2.35

WesBanco currently has a consensus target price of $42.25, suggesting a potential upside of 1.66%. As a group, “Banks” companies have a potential downside of 5.25%. Given WesBanco’s higher possible upside, equities research analysts plainly believe WesBanco is more favorable than its peers.

Summary

WesBanco peers beat WesBanco on 9 of the 15 factors compared.

About WesBanco

WesBanco, Inc. (WesBanco) is a bank holding company. The Company offers a range of financial services, including retail banking, corporate banking, personal and corporate trust services, brokerage services, mortgage banking and insurance. WesBanco offers its services through two segments: community banking, which offers services, such as commercial demand, individual demand and time deposit accounts, as well as commercial, mortgage and individual installment loans, and trust and investment services, which offers trust services, as well as various alternative investment products, including mutual funds. The Community Banking segment also offers insurance and securities brokerage services, among others. As of December 31, 2016, WesBanco operated one commercial bank, WesBanco Bank, Inc. through 174 branches and 163 automated teller machines (ATMs) located in West Virginia, Ohio, western Pennsylvania, Kentucky and southern Indiana.

Receive News & Ratings for WesBanco Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for WesBanco and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply