Veritex (NASDAQ:VBTX) and First Busey (NASDAQ:BUSE) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, dividends, valuation, profitability and analyst recommendations.
First Busey pays an annual dividend of $0.80 per share and has a dividend yield of 2.6%. Veritex does not pay a dividend. First Busey pays out 49.7% of its earnings in the form of a dividend. First Busey has raised its dividend for 4 consecutive years.
This table compares Veritex and First Busey’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Veritex||$87.13 million||8.00||$15.15 million||$0.95||30.35|
|First Busey||$308.78 million||4.91||$62.72 million||$1.61||19.32|
First Busey has higher revenue and earnings than Veritex. First Busey is trading at a lower price-to-earnings ratio than Veritex, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and target prices for Veritex and First Busey, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Veritex presently has a consensus target price of $35.00, indicating a potential upside of 21.40%. First Busey has a consensus target price of $33.75, indicating a potential upside of 8.52%. Given Veritex’s stronger consensus rating and higher probable upside, equities analysts plainly believe Veritex is more favorable than First Busey.
This table compares Veritex and First Busey’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
73.3% of Veritex shares are held by institutional investors. Comparatively, 49.4% of First Busey shares are held by institutional investors. 4.7% of Veritex shares are held by insiders. Comparatively, 11.2% of First Busey shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Volatility & Risk
Veritex has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500. Comparatively, First Busey has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500.
Veritex Company Profile
Veritex Holdings, Inc. operates as the holding company for Veritex Community Bank that provides various commercial banking products and services to small and medium-sized businesses, and professionals. The company's deposit products include checking, demand, savings, money market, and time deposit accounts, as well as commercial deposit and financial institution money market accounts. Its loan portfolio consists of commercial real estate and general commercial loans, residential real estate loans, construction and land loans, farmland loans, and consumer loans. The company also provides a range of online banking solutions, such as access to account balances, online transfers, online bill payment and electronic delivery of customer statements, and ATMs, as well as banking through telephone, mail, and personal appointment. In addition, it offers debit cards, night depository services, direct deposits, cashier's checks, and letters of credit; treasury management services, including balance reporting, transfers between accounts, wire transfer initiation, automated clearinghouse origination, and stop payments; and cash management deposit products consisting of lockbox, remote deposit capture, positive pay, reverse positive pay, account reconciliation services, zero balance accounts, and sweep accounts. The company operates through 20 branches and 1 mortgage office located in the Dallas-Fort Worth metroplex, as well as 1 branch in the Houston metropolitan area. Veritex Holdings, Inc. was founded in 2009 and is headquartered in Dallas, Texas.
First Busey Company Profile
First Busey Corporation operates as the bank holding company for Busey Bank that provides retail and commercial banking products and services to individual, corporate, institutional, and governmental customers in the United States. The company operates in three segments: Banking, Remittance Processing, and Wealth Management. It offers customary types of demand and savings deposits; and commercial, agricultural, commercial and residential real estate, and consumer loans, as well as home equity lines of credit. The company also provides money transfer, safe deposit, IRA, Keogh and other fiduciary, ATM and technology-based networks, and online and mobile banking services. In addition, it offers investment management, trust, estate advisory, and financial planning services, as well as business succession planning, and employee retirement planning services; investment strategy consulting and fiduciary services; and security brokerage services. Further, the company provides pay processing solutions, such as walk-in payment processing for payments delivered by customers to retail pay agents; online bill payment solutions for payments made by customers on a billing company's Website; customer service payments for payments accepted over the telephone; direct debit services; electronic concentration of payments delivered by the automated clearing house network; money management software and credit card networks; and lockbox remittance processing of payments delivered by mail. It has 28 banking centers in Illinois; 7 in southwest Florida; and 1 in Indianapolis, Indiana. First Busey Corporation was founded in 1868 and is headquartered in Champaign, Illinois.
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