Head-To-Head Survey: Western Alliance Bancorporation (WAL) vs. Horizon Bancorp (HBNC)

Western Alliance Bancorporation (NYSE:WAL) and Horizon Bancorp (NASDAQ:HBNC) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, profitability, risk and valuation.

Insider and Institutional Ownership

83.7% of Western Alliance Bancorporation shares are owned by institutional investors. Comparatively, 53.4% of Horizon Bancorp shares are owned by institutional investors. 7.5% of Western Alliance Bancorporation shares are owned by company insiders. Comparatively, 4.6% of Horizon Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility & Risk

Western Alliance Bancorporation has a beta of 1.54, suggesting that its stock price is 54% more volatile than the S&P 500. Comparatively, Horizon Bancorp has a beta of 1.02, suggesting that its stock price is 2% more volatile than the S&P 500.

Valuation & Earnings

This table compares Western Alliance Bancorporation and Horizon Bancorp’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Western Alliance Bancorporation $1.08 billion 4.13 $435.79 million $4.14 10.21
Horizon Bancorp $200.58 million 3.14 $53.12 million $1.27 12.91

Western Alliance Bancorporation has higher revenue and earnings than Horizon Bancorp. Western Alliance Bancorporation is trading at a lower price-to-earnings ratio than Horizon Bancorp, indicating that it is currently the more affordable of the two stocks.

Dividends

Horizon Bancorp pays an annual dividend of $0.40 per share and has a dividend yield of 2.4%. Western Alliance Bancorporation does not pay a dividend. Horizon Bancorp pays out 31.5% of its earnings in the form of a dividend. Horizon Bancorp has raised its dividend for 5 consecutive years.

Analyst Ratings

This is a summary of current recommendations for Western Alliance Bancorporation and Horizon Bancorp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Western Alliance Bancorporation 0 0 9 0 3.00
Horizon Bancorp 0 0 2 0 3.00

Western Alliance Bancorporation presently has a consensus target price of $63.67, indicating a potential upside of 50.62%. Horizon Bancorp has a consensus target price of $20.00, indicating a potential upside of 22.03%. Given Western Alliance Bancorporation’s higher possible upside, research analysts clearly believe Western Alliance Bancorporation is more favorable than Horizon Bancorp.

Profitability

This table compares Western Alliance Bancorporation and Horizon Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Western Alliance Bancorporation 40.48% 17.81% 1.99%
Horizon Bancorp 26.48% 10.59% 1.22%

Summary

Western Alliance Bancorporation beats Horizon Bancorp on 13 of the 16 factors compared between the two stocks.

Western Alliance Bancorporation Company Profile

Western Alliance Bancorporation operates as the holding company for Western Alliance Bank that provides various banking products and related services primarily in Arizona, California, and Nevada. The company offers deposit products, including checking accounts, savings accounts, and money market accounts, as well as fixed-rate and fixed maturity certificates of deposit accounts. It also offers commercial and industrial loan products, such as working capital lines of credit, inventory and accounts receivable lines, mortgage warehouse lines, equipment loans and leases, and other commercial loans; commercial real estate loans, which are secured by multi-family residential properties, professional offices, industrial facilities, retail centers, hotels, and other commercial properties; construction and land development loans for single family and multi-family residential projects, industrial/warehouse properties, office buildings, retail centers, medical office facilities, and residential lot developments; and consumer loans. In addition, the company provides other financial services, such as Internet banking, wire transfers, electronic bill payment and presentment, lock box services, courier, and cash management services. Further, it holds certain investment securities, municipal and non-profit loans, and leases; invests primarily in low income housing tax credits and small business investment corporations; and holds certain real estate loans and related securities. As of December 31, 2018, the company operated 38 branch locations and 11 loan production offices. Western Alliance Bancorporation was founded in 1994 and is headquartered in Phoenix, Arizona.

Horizon Bancorp Company Profile

Horizon Bancorp, Inc. operates as the bank holding company for Horizon Bank that provides commercial and retail banking services. The company offers non-interest bearing and interest-bearing demand deposits, savings accounts, money market deposits, and time deposits. Its loan portfolio comprises commercial, financial, agricultural, and commercial tax-exempt loans; and real estate, mortgage warehouse, and consumer loans. The company also provides corporate and individual trust and agency, investment management, and real estate investment trust services; and sells various insurance products. It operates through a network of 62 full service offices in Northern and Central Indiana, as well as Southern, Central, and Great Lakes bay regions of Michigan. The company was founded in 1873 and is headquartered in Michigan City, Indiana.

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