Sterling Bancorp (STL) & Its Peers Critical Contrast

Sterling Bancorp (NYSE: STL) is one of 206 publicly-traded companies in the “Commercial Banks” industry, but how does it weigh in compared to its competitors? We will compare Sterling Bancorp to related businesses based on the strength of its valuation, dividends, earnings, institutional ownership, risk, profitability and analyst recommendations.

Institutional and Insider Ownership

90.9% of Sterling Bancorp shares are held by institutional investors. Comparatively, 46.7% of shares of all “Commercial Banks” companies are held by institutional investors. 3.7% of Sterling Bancorp shares are held by company insiders. Comparatively, 11.7% of shares of all “Commercial Banks” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Sterling Bancorp pays an annual dividend of $0.28 per share and has a dividend yield of 1.2%. Sterling Bancorp pays out 23.3% of its earnings in the form of a dividend. As a group, “Commercial Banks” companies pay a dividend yield of 1.9% and pay out 35.6% of their earnings in the form of a dividend.

Valuation & Earnings

This table compares Sterling Bancorp and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Sterling Bancorp $474.00 million N/A 19.21
Sterling Bancorp Competitors N/A N/A 24.29

Sterling Bancorp 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.

Volatility & Risk

Sterling Bancorp has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, Sterling Bancorp’s competitors have a beta of 0.73, suggesting that their average stock price is 27% less volatile than the S&P 500.

Profitability

This table compares Sterling Bancorp and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sterling Bancorp 28.40% 8.62% 1.11%
Sterling Bancorp Competitors 19.70% 8.37% 0.88%

Analyst Recommendations

This is a summary of current ratings and target prices for Sterling Bancorp and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sterling Bancorp 0 1 8 0 2.89
Sterling Bancorp Competitors 845 3934 2851 114 2.29

Sterling Bancorp currently has a consensus target price of $27.42, indicating a potential upside of 18.94%. As a group, “Commercial Banks” companies have a potential upside of 4.34%. Given Sterling Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe Sterling Bancorp is more favorable than its competitors.

Summary

Sterling Bancorp beats its competitors on 10 of the 14 factors compared.

About Sterling Bancorp

Sterling Bancorp is a financial holding company. The Company is a bank holding company that owns the Sterling National Bank (the Bank). The Bank specializes in the delivery of services and solutions to business owners, their families and consumers within the communities it serves. The Bank offers a line of commercial, business, and consumer banking products and services. The Bank is engaged in the origination of commercial loans and commercial mortgage loans. The Company also originates residential mortgage loans and consumer loans. The Bank offers services in the New York Metro Market, which includes Manhattan and Long Island, and the New York Suburban Market, which consists of Rockland, Orange, Sullivan, Ulster, Putnam and Westchester counties in New York and Bergen County in New Jersey. Its deposit products include non-interest bearing demand deposits, interest bearing demand deposits, savings, money market and certificate of deposits.

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