Critical Analysis: Blue Hills Bancorp (BHBK) vs. Susquehanna Bancshares (SUSQ)

Susquehanna Bancshares (NASDAQ: SUSQ) and Blue Hills Bancorp (NASDAQ:BHBK) are both financials companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, risk, institutional ownership, earnings, profitability and analyst recommendations.

Analyst Recommendations

This is a breakdown of current recommendations for Susquehanna Bancshares and Blue Hills Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Susquehanna Bancshares 0 0 0 0 N/A
Blue Hills Bancorp 0 1 1 0 2.50

Blue Hills Bancorp has a consensus price target of $22.50, suggesting a potential upside of 11.39%.

Insider and Institutional Ownership

52.0% of Blue Hills Bancorp shares are held by institutional investors. 3.7% of Blue Hills Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Blue Hills Bancorp pays an annual dividend of $0.60 per share and has a dividend yield of 3.0%. Susquehanna Bancshares does not pay a dividend. Blue Hills Bancorp pays out 88.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings & Valuation

This table compares Susquehanna Bancshares and Blue Hills Bancorp’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Susquehanna Bancshares N/A N/A N/A $0.70 N/A
Blue Hills Bancorp $101.86 million 5.32 $16.49 million $0.68 29.71

Blue Hills Bancorp has higher revenue and earnings than Susquehanna Bancshares. Susquehanna Bancshares is trading at a lower price-to-earnings ratio than Blue Hills Bancorp, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Susquehanna Bancshares and Blue Hills Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Susquehanna Bancshares 20.31% 5.15% 0.77%
Blue Hills Bancorp 16.19% 3.47% 0.55%

About Susquehanna Bancshares

Susquehanna Bancshares, Inc. is a financial holding company. The Company conducts its business operations primarily through its commercial bank subsidiary, Susquehanna Bank, and other subsidiaries in the mid-Atlantic region to provide a range of retail and commercial banking and financial products and services. It provides a range of retail banking services, including checking, savings and club accounts, check cards, debit cards, money market accounts, certificates of deposit, individual retirement accounts, home equity lines of credit, residential mortgage loans, home improvement loans, automobile loans, personal loans, and internet and mobile banking services. It also provides a range of commercial banking services, including business checking accounts, cash management services, money market accounts, land acquisition and development loans, commercial loans, floor plan, equipment and working capital lines of credit, small business loans and internet banking services.

About Blue Hills Bancorp

Blue Hills Bancorp, Inc. is a bank holding company for the Blue Hills Bank (the Bank). Blue Hills Bank is a Massachusetts-chartered savings bank. As of December 31, 2016, the Bank provided financial services to individuals, families, small to mid-size businesses and government and non-profit organizations online and through its 11 full-service branch offices located in Brookline, Dedham, Hyde Park, Milton, Nantucket, Norwood, West Roxbury, and Westwood, Massachusetts. Its primary deposit-taking market includes Norfolk, Suffolk and Nantucket Counties in Massachusetts, and its lending market is primarily based in eastern Massachusetts. Its business consists primarily of accepting deposits from the general public, commercial businesses and government and non-profit organizations, and investing those deposits, together with funds generated from operations and borrowings in one- to four-family residential mortgage loans, commercial business loans and investment securities, among others.

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