Head-To-Head Comparison: M&T Bank (MTB) versus Its Competitors

M&T Bank (NYSE:MTB) is one of 919 public companies in the “Banks” industry, but how does it weigh in compared to its rivals? We will compare M&T Bank to related companies based on the strength of its risk, profitability, valuation, dividends, analyst recommendations, earnings and institutional ownership.

Valuation and Earnings

This table compares M&T Bank and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
M&T Bank	$13.23 billion	$2.85 billion	11.43
M&T Bank Competitors	$222.41 billion	$2.42 billion	20.24

M&T Bank’s rivals have higher revenue, but lower earnings than M&T Bank. M&T Bank 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.

Risk & Volatility

M&T Bank has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, M&T Bank’s rivals have a beta of 0.61, suggesting that their average stock price is 39% less volatile than the S&P 500.

Dividends

M&T Bank pays an annual dividend of $6.00 per share and has a dividend yield of 2.7%. M&T Bank pays out 31.3% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.3% and pay out 29.0% of their earnings in the form of a dividend. M&T Bank lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Institutional & Insider Ownership

84.7% of M&T Bank shares are owned by institutional investors. Comparatively, 48.0% of shares of all “Banks” companies are owned by institutional investors. 0.4% of M&T Bank shares are owned by insiders. Comparatively, 9.8% of shares of all “Banks” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for M&T Bank and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
M&T Bank	2	13	8	0	2.26
M&T Bank Competitors	7470	30209	27786	1473	2.35

M&T Bank presently has a consensus price target of $244.89, indicating a potential upside of 11.86%. As a group, “Banks” companies have a potential upside of 16.72%. Given M&T Bank’s rivals stronger consensus rating and higher probable upside, analysts clearly believe M&T Bank has less favorable growth aspects than its rivals.

Profitability

This table compares M&T Bank and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
M&T Bank	22.63%	11.86%	1.40%
M&T Bank Competitors	15.64%	9.43%	0.93%

Summary

M&T Bank rivals beat M&T Bank on 9 of the 15 factors compared.

About M&T Bank

M&T Bank Corp. operates as a bank holding company, which engages in the provision of retail and commercial banking, trust, wealth management, and investment services. It operates through the following segments: Commercial Bank, Retail Bank, Institutional Services and Wealth Management, and All Other. The Commercial Bank segment offers a wide range of credit products and banking services to middle-market and large commercial customers, mainly within the markets served by the company. The Retail Bank segment refers to the services to consumers and small businesses through the company’s branch network and several other delivery channels such as telephone banking, internet banking, and ATMs. The Institutional Services and Wealth Management segment relates to helping high net worth individuals, institutions, and families grow, preserve, and transfer wealth. The All Other segment reflects other activities of the company that are not directly attributable to the reported segments. The company was founded on August 30, 1856 and is headquartered in Buffalo, NY.