Allegiance Bancshares (NASDAQ:ABTX) and Peoples Utah Bancorp (NASDAQ:PUB) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, profitability, risk, dividends, earnings and analyst recommendations.
Peoples Utah Bancorp pays an annual dividend of $0.44 per share and has a dividend yield of 1.5%. Allegiance Bancshares does not pay a dividend. Peoples Utah Bancorp pays out 20.6% of its earnings in the form of a dividend. Peoples Utah Bancorp has increased its dividend for 3 consecutive years.
This is a summary of current ratings and price targets for Allegiance Bancshares and Peoples Utah Bancorp, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Peoples Utah Bancorp||0||1||0||0||2.00|
Allegiance Bancshares presently has a consensus target price of $41.50, suggesting a potential upside of 9.56%. Given Allegiance Bancshares’ stronger consensus rating and higher possible upside, equities analysts plainly believe Allegiance Bancshares is more favorable than Peoples Utah Bancorp.
Insider and Institutional Ownership
29.5% of Allegiance Bancshares shares are owned by institutional investors. Comparatively, 37.9% of Peoples Utah Bancorp shares are owned by institutional investors. 12.7% of Allegiance Bancshares shares are owned by insiders. Comparatively, 18.3% of Peoples Utah Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Volatility and Risk
Allegiance Bancshares has a beta of 1.6, meaning that its stock price is 60% more volatile than the S&P 500. Comparatively, Peoples Utah Bancorp has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500.
This table compares Allegiance Bancshares and Peoples Utah Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Peoples Utah Bancorp||31.00%||14.90%||1.86%|
Earnings and Valuation
This table compares Allegiance Bancshares and Peoples Utah Bancorp’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Allegiance Bancshares||$165.94 million||4.98||$37.31 million||$2.52||15.03|
|Peoples Utah Bancorp||$130.48 million||4.07||$40.63 million||$2.14||13.27|
Peoples Utah Bancorp has lower revenue, but higher earnings than Allegiance Bancshares. Peoples Utah Bancorp is trading at a lower price-to-earnings ratio than Allegiance Bancshares, indicating that it is currently the more affordable of the two stocks.
Allegiance Bancshares beats Peoples Utah Bancorp on 9 of the 17 factors compared between the two stocks.
Allegiance Bancshares Company Profile
Allegiance Bancshares, Inc. operates as the bank holding company for Allegiance Bank that provides a range of commercial banking services primarily to small and medium-sized businesses, professionals, and individual customers. It accepts deposit products, including checking accounts, commercial accounts, savings accounts, and other time deposits comprising money market accounts and certificates of deposit. The company also grants various loan products, such as commercial and industrial loans; mortgage warehouse loans; commercial real estate loans, including multi-family residential loans; commercial real estate construction and land development loans; residential real estate loans, such as 1-4 family residential mortgage loans; residential construction loans; and consumer and other loans. In addition, it offers automated teller machines, drive-through services, and 24-hour depository facilities; mobile banking; and telephone, mail, and Internet banking services. Further, the company provides safe deposit boxes, debit cards, cash management and wire transfer services, night depository services, direct deposits, cashier's checks, and letters of credit. As of January 25, 2018, it operated 16 full-service banking locations and a loan production office in the Houston metropolitan area. The company was founded in 2007 and is headquartered in Houston, Texas.
Peoples Utah Bancorp Company Profile
People's Utah Bancorp operates as the bank holding company for People's Intermountain Bank that provides retail and commercial banking products and services. The company accepts various deposits, such as checking, rewards checking, savings, and money market deposit accounts, as well as individual retirement accounts and certificates of deposit. Its loan products include commercial and residential real estate lending comprising acquisition and development loans, construction loans, and mortgage financing; commercial and industrial loans, as well as leasing; consumer loans consisting of home equity loans, home improvement loans, automobile loans, debt consolidation loans, and general consumer lending; and SBA loans. The company also offers credit and debit cards; investment securities, such as U.S. Agency issues, mortgage-backed securities, and municipal bonds; and mobile and Internet banking, automatic teller machine, treasury management, remote deposit capture, bill pay, cashier's checks, money orders, and safe deposit services. It serves real estate developers and contractors, small to medium sized businesses, individuals, and professionals and professional firms through 25 retail branches located in Utah and southern Idaho. People's Utah Bancorp was founded in 1905 and is headquartered in American Fork, Utah.
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