Head to Head Analysis: Simmons First National (NASDAQ:SFNC) versus Its Rivals

Simmons First National (NASDAQ: SFNC) is one of 305 publicly-traded companies in the “Banks” industry, but how does it weigh in compared to its competitors? We will compare Simmons First National to related companies based on the strength of its dividends, profitability, analyst recommendations, risk, earnings, institutional ownership and valuation.

Dividends

Simmons First National pays an annual dividend of $0.50 per share and has a dividend yield of 1.8%. Simmons First National pays out 36.5% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 2.0% and pay out 36.9% of their earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
Simmons First National 17.41% 8.28% 1.13%
Simmons First National Competitors 17.53% 8.47% 0.96%

Volatility and Risk

Simmons First National has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, Simmons First National’s competitors have a beta of 0.76, meaning that their average share price is 24% less volatile than the S&P 500.

Insider and Institutional Ownership

51.3% of Simmons First National shares are owned by institutional investors. Comparatively, 51.7% of shares of all “Banks” companies are owned by institutional investors. 4.6% of Simmons First National 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 will outperform the market over the long term.

Earnings and Valuation

This table compares Simmons First National and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Simmons First National $533.77 million $92.94 million 20.73
Simmons First National Competitors $5.59 billion $772.66 million 399.16

Simmons First National’s competitors have higher revenue and earnings than Simmons First National. Simmons First National 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.

Analyst Recommendations

This is a breakdown of recent ratings for Simmons First National and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Simmons First National 0 3 2 0 2.40
Simmons First National Competitors 2524 9124 8989 381 2.34

Simmons First National presently has a consensus price target of $31.63, indicating a potential upside of 11.36%. As a group, “Banks” companies have a potential downside of 0.89%. Given Simmons First National’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Simmons First National is more favorable than its competitors.

Summary

Simmons First National competitors beat Simmons First National on 10 of the 15 factors compared.

Simmons First National Company Profile

Simmons First National Corporation is a financial holding company. The Company, through its subsidiary bank, Simmons Bank, provides financial services to individuals and businesses throughout the market areas they serve. As of December 31, 2016, Simmons Bank conducted banking operations through 150 financial centers located in communities throughout Arkansas, Kansas, Missouri, Tennessee, Colorado, Oklahoma and Texas. Simmons Bank offers consumer, real estate and commercial loans, checking and savings deposits. Simmons Bank and its subsidiaries have also developed products and services, which include credit cards, investments, agricultural finance lending, equipment lending, insurance and small business administration lending. The securities within the portfolio are classified as either held-to-maturity, available-for-sale or trading. The Company offers deposits, including non-interest bearing transaction accounts; interest bearing transaction accounts, and time deposits.

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