Financial Review: Westpac Banking (WBK) and Its Competitors

Westpac Banking (NYSE: WBK) is one of 298 public companies in the “Banks” industry, but how does it compare to its peers? We will compare Westpac Banking to related companies based on the strength of its institutional ownership, valuation, dividends, analyst recommendations, profitability, earnings and risk.

Analyst Ratings

This is a summary of current ratings and target prices for Westpac Banking and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Westpac Banking 0 3 2 0 2.40
Westpac Banking Competitors 2215 8507 8446 348 2.35

As a group, “Banks” companies have a potential upside of 1.46%. Given Westpac Banking’s peers higher possible upside, analysts clearly believe Westpac Banking has less favorable growth aspects than its peers.

Volatility and Risk

Westpac Banking has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500. Comparatively, Westpac Banking’s peers have a beta of 0.80, suggesting that their average stock price is 20% less volatile than the S&P 500.

Institutional and Insider Ownership

0.6% of Westpac Banking shares are owned by institutional investors. Comparatively, 52.0% of shares of all “Banks” companies are owned by institutional investors. 10.4% of shares of all “Banks” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

Westpac Banking pays an annual dividend of $1.43 per share and has a dividend yield of 5.9%. As a group, “Banks” companies pay a dividend yield of 2.0% and pay out 35.8% of their earnings in the form of a dividend.

Valuation & Earnings

This table compares Westpac Banking and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Westpac Banking $28.58 billion $6.09 billion N/A
Westpac Banking Competitors $5.50 billion $827.87 million 400.45

Westpac Banking has higher revenue and earnings than its peers.

Profitability

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

Net Margins Return on Equity Return on Assets
Westpac Banking N/A N/A N/A
Westpac Banking Competitors 18.79% 8.39% 0.94%

Summary

Westpac Banking peers beat Westpac Banking on 8 of the 14 factors compared.

Westpac Banking Company Profile

Westpac Banking Corporation is a banking organization. The Company provides a range of banking and financial services in markets, including consumer, business and institutional banking and wealth management services. The Company is engaged in the provision of financial services, including lending, deposit taking, payments services, investment portfolio management and advice, superannuation and funds management, insurance services, leasing finance, general finance, interest rate risk management and foreign exchange services. The Company’s segments include Consumer Bank, Business Bank, BT Financial Group (BTFG), Westpac Institutional Bank (WIB) and Westpac New Zealand. The Company has branches throughout Australia, New Zealand, Asia and in the Pacific region. The Company through its division offers its services under various brands, such as Westpac, St.George, BankSA, Bank of Melbourne and RAMS brands.

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