Webster Financial (NYSE: WBS) is one of 308 public companies in the “Banks” industry, but how does it contrast to its rivals? We will compare Webster Financial to similar businesses based on the strength of its institutional ownership, earnings, analyst recommendations, valuation, dividends, profitability and risk.

Analyst Ratings

This is a summary of current ratings and price targets for Webster Financial and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Webster Financial 1 6 2 0 2.11
Webster Financial Competitors 2179 8464 8546 333 2.36

Webster Financial presently has a consensus target price of $54.88, suggesting a potential downside of 2.29%. As a group, “Banks” companies have a potential downside of 6.31%. Given Webster Financial’s higher possible upside, research analysts clearly believe Webster Financial is more favorable than its rivals.

Profitability

This table compares Webster Financial and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Webster Financial 21.09% 9.89% 0.93%
Webster Financial Competitors 18.67% 8.37% 0.94%

Valuation and Earnings

This table compares Webster Financial and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Webster Financial $1.09 billion $207.12 million 22.20
Webster Financial Competitors $5.50 billion $827.87 million 384.79

Webster Financial’s rivals have higher revenue and earnings than Webster Financial. Webster Financial is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Dividends

Webster Financial pays an annual dividend of $1.04 per share and has a dividend yield of 1.9%. Webster Financial pays out 41.1% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 1.9% and pay out 34.8% of their earnings in the form of a dividend. Webster Financial has increased its dividend for 6 consecutive years. Webster Financial lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Risk and Volatility

Webster Financial has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500. Comparatively, Webster Financial’s rivals have a beta of 0.78, indicating that their average stock price is 22% less volatile than the S&P 500.

Institutional & Insider Ownership

93.5% of Webster Financial shares are owned by institutional investors. Comparatively, 52.2% of shares of all “Banks” companies are owned by institutional investors. 2.2% of Webster Financial shares are owned by company insiders. Comparatively, 10.4% of shares of all “Banks” companies 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.

Summary

Webster Financial rivals beat Webster Financial on 10 of the 15 factors compared.

About Webster Financial

Webster Financial Corporation is a bank and financial holding company. The Company’s segments include Commercial Banking, Community Banking, HSA Bank, Private Banking, and Corporate and Reconciling. The Commercial Banking segment includes middle-market, asset-based lending, commercial real estate, equipment finance, and treasury and payment solutions, which includes government and institutional banking. The Community Banking segment consists of its Personal Banking and Business Banking segments. HSA Bank, a division of its subsidiary, Webster Bank, National Association, offers health savings accounts, health reimbursement accounts, flexible spending accounts, and other financial solutions. Private Banking serves high-net-worth clients, not-for-profit organizations, and business clients with asset management, trust, loan and deposit products, and financial planning services. Its treasury unit and consumer-liquidating portfolio are included in the Corporate and Reconciling segment.

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