Live Oak Bancshares (LOB) vs. Its Peers Critical Review
Live Oak Bancshares (NASDAQ: LOB) is one of 207 public companies in the “Commercial Banks” industry, but how does it contrast to its competitors? We will compare Live Oak Bancshares to related companies based on the strength of its institutional ownership, analyst recommendations, dividends, valuation, risk, profitability and earnings.
Earnings and Valuation
This table compares Live Oak Bancshares and its competitors revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Live Oak Bancshares||$151.53 million||N/A||33.50|
|Live Oak Bancshares Competitors||N/A||N/A||25.52|
Live Oak Bancshares is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Volatility & Risk
Live Oak Bancshares has a beta of -0.11, meaning that its share price is 111% less volatile than the S&P 500. Comparatively, Live Oak Bancshares’ competitors have a beta of 0.73, meaning that their average share price is 27% less volatile than the S&P 500.
Live Oak Bancshares pays an annual dividend of $0.12 per share and has a dividend yield of 0.5%. Live Oak Bancshares pays out 17.1% of its earnings in the form of a dividend. As a group, “Commercial Banks” companies pay a dividend yield of 1.8% and pay out 35.7% of their earnings in the form of a dividend.
Institutional and Insider Ownership
37.5% of Live Oak Bancshares shares are held by institutional investors. Comparatively, 46.7% of shares of all “Commercial Banks” companies are held by institutional investors. 30.1% of Live Oak Bancshares shares are held by insiders. Comparatively, 11.7% of shares of all “Commercial Banks” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a breakdown of current ratings and price targets for Live Oak Bancshares and its competitors, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Live Oak Bancshares||0||0||1||0||3.00|
|Live Oak Bancshares Competitors||853||3982||2890||116||2.29|
Live Oak Bancshares currently has a consensus target price of $24.00, suggesting a potential upside of 2.35%. As a group, “Commercial Banks” companies have a potential downside of 0.75%. Given Live Oak Bancshares’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Live Oak Bancshares is more favorable than its competitors.
This table compares Live Oak Bancshares and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Live Oak Bancshares||13.71%||11.50%||1.37%|
|Live Oak Bancshares Competitors||19.74%||8.37%||0.88%|
Live Oak Bancshares beats its competitors on 9 of the 14 factors compared.
About Live Oak Bancshares
Live Oak Bancshares, Inc. is a bank holding company. The Company conducts business operations primarily through its commercial bank subsidiary, Live Oak Banking Company (the Bank). The Bank specializes in providing lending services to small businesses nationwide in targeted industries. The loans originated by the Bank are guaranteed by the small business administration (SBA). The Company’s loan portfolio includes commercial and industrial loans; construction and development loans; commercial real estate, and commercial land. The Company’s investment securities include the United States Government agencies, residential mortgage-backed securities and mutual fund. The Company’s deposits include non-interest-bearing deposits and interest-bearing deposits, such as interest-bearing checking, money market and time deposits.
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