Bar Harbor Bankshares (NYSE:BHB) versus Renasant (NYSE:RNST) Financial Comparison

Bar Harbor Bankshares (NYSE:BHB) and Renasant (NYSE:RNST) are both financial services companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, risk, earnings, profitability, valuation and analyst recommendations.

Volatility & Risk

Bar Harbor Bankshares has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500. Comparatively, Renasant has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500.

Institutional & Insider Ownership

54.5% of Bar Harbor Bankshares shares are owned by institutional investors. Comparatively, 77.3% of Renasant shares are owned by institutional investors. 2.6% of Bar Harbor Bankshares shares are owned by company insiders. Comparatively, 2.8% of Renasant shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Bar Harbor Bankshares and Renasant”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bar Harbor Bankshares	$156.64 million	3.27	$38.72 million	$2.32	13.22
Renasant	$874.43 million	3.86	$195.46 million	$1.99	17.85

Renasant has higher revenue and earnings than Bar Harbor Bankshares. Bar Harbor Bankshares is trading at a lower price-to-earnings ratio than Renasant, indicating that it is currently the more affordable of the two stocks.

Dividends

Bar Harbor Bankshares pays an annual dividend of $1.28 per share and has a dividend yield of 4.2%. Renasant pays an annual dividend of $0.92 per share and has a dividend yield of 2.6%. Bar Harbor Bankshares pays out 55.2% of its earnings in the form of a dividend. Renasant pays out 46.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Bar Harbor Bankshares has raised its dividend for 22 consecutive years. Bar Harbor Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Bar Harbor Bankshares and Renasant’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bar Harbor Bankshares	N/A	N/A	N/A
Renasant	11.26%	6.99%	1.01%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Bar Harbor Bankshares and Renasant, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bar Harbor Bankshares	0	2	1	0	2.33
Renasant	0	1	0	1	3.00

Bar Harbor Bankshares currently has a consensus price target of $34.50, indicating a potential upside of 12.45%. Given Bar Harbor Bankshares’ higher possible upside, research analysts clearly believe Bar Harbor Bankshares is more favorable than Renasant.

Summary

Renasant beats Bar Harbor Bankshares on 13 of the 18 factors compared between the two stocks.

About Bar Harbor Bankshares

Bar Harbor Bankshares operates as the holding company for Bar Harbor Bank & Trust that provides commercial, lending, retail, and wealth management banking services. It accepts various deposit products, including interest-bearing and non-interest-bearing demand accounts, savings accounts, time deposits, and money market deposit accounts, as well as certificates of deposit. The company also provides commercial real estate loans, such as multi-family, commercial construction and land development, and other commercial real estate classes; commercial and industrial loans, including loans to commercial and agricultural businesses, and tax exempt entities; residential real estate loans consists of mortgages for 1-4 family housing; and consumer loans comprises home equity loans, lines of credit, auto, and other installment lending. In addition, it provides life insurance, annuity, and retirement products, as well as financial planning services; and third-party investment and insurance services. Further, the company offers trust and estate administration, wealth advisory, and investment management services to individuals, businesses, not-for-profit organizations, and municipalities; and 401K plan, financial, estate and charitable planning, investment management, family office, municipal, and tax services. It operates 53 locations across Maine, New Hampshire, and Vermont. The company was founded in 1887 and is based in Bar Harbor, Maine.

About Renasant

Renasant Corporation operates as a bank holding company for Renasant Bank that provides a range of financial, wealth management, fiduciary, and insurance services to retail and commercial customers. It operates through three segments: Community Banks, Insurance, and Wealth Management. The Community Banks segment offers checking and savings accounts, business and personal loans, asset-based lending, and equipment leasing services, as well as safe deposit and night depository facilities. It also provides commercial, financial, and agricultural loans; equipment financing and leasing; real estate–1-4 family mortgage; real estate–commercial mortgage; real estate–construction loans for the construction of single family residential properties, multi-family properties, and commercial projects; installment loans to individuals; and interim construction loans, as well as automated teller machine (ATM), online and mobile banking, call center, and treasury management services. The Insurance segment provides insurance agency services, such as commercial and personal insurance products through insurance carriers. The Wealth Management segment offers a range of wealth management and fiduciary services, including administration and management of trust accounts, such as personal and corporate benefit accounts, and custodial accounts, as well as accounting and money management for trust accounts; annuities, mutual funds, and other investment services through a third party broker-dealer; and qualified retirement plans, IRAs, employee benefit plans, personal trusts, and estates. As of December 31, 2021, the company operated a network of 189 banking, lending, and mortgage offices located in Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, and Tennessee; 150 full-service branches and 11 limited-service branches; 173 ATMs; and 38 interactive teller machines. Renasant Corporation was founded in 1904 and is headquartered in Tupelo, Mississippi.