Signature Bank (NASDAQ:SBNY) versus Banner (NASDAQ:BANR) Critical Survey

Signature Bank (NASDAQ:SBNY) and Banner (NASDAQ:BANR) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, risk, valuation, institutional ownership, earnings and profitability.

Profitability

This table compares Signature Bank and Banner’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Signature Bank	N/A	N/A	N/A
Banner	20.28%	10.03%	1.09%

Risk & Volatility

Signature Bank has a beta of 11.14, suggesting that its share price is 1,014% more volatile than the S&P 500. Comparatively, Banner has a beta of 0.9, suggesting that its share price is 10% less volatile than the S&P 500.

Insider & Institutional Ownership

11.1% of Signature Bank shares are owned by institutional investors. Comparatively, 87.3% of Banner shares are owned by institutional investors. 1.5% of Signature Bank shares are owned by company insiders. Comparatively, 1.7% of Banner 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.

Analyst Recommendations

This is a breakdown of recent ratings for Signature Bank and Banner, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Signature Bank	0	0	0	0	0.00
Banner	0	2	4	0	2.67

Banner has a consensus price target of $70.83, suggesting a potential upside of 15.14%. Given Banner’s stronger consensus rating and higher probable upside, analysts plainly believe Banner is more favorable than Signature Bank.

Valuation and Earnings

This table compares Signature Bank and Banner”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Signature Bank	$2.70 billion	0.02	$1.34 billion	N/A	N/A
Banner	$618.20 million	3.44	$168.90 million	$5.09	12.09

Signature Bank has higher revenue and earnings than Banner.

Dividends

Signature Bank pays an annual dividend of $0.70 per share and has a dividend yield of 82.4%. Banner pays an annual dividend of $1.92 per share and has a dividend yield of 3.1%. Banner pays out 37.7% of its earnings in the form of a dividend.

Summary

Banner beats Signature Bank on 9 of the 14 factors compared between the two stocks.

About Signature Bank

As of March 12, 2023, Signature Bank went out of business. Previously, the company provided digital assets banking services and comprised of certain loan portfolios. The company was incorporated in 2000 and is based in New York, New York. Signature Bank now trades on OTCPK.

About Banner

Banner Corporation operates as the bank holding company for Banner Bank that engages in the provision of commercial banking and financial products and services to individuals, businesses, and public sector entities in the United States. It accepts various deposit instruments, including interest-bearing and non-interest-bearing checking accounts, money market deposit accounts, regular savings accounts, and certificates of deposit, as well as treasury management services and retirement savings plans. The company also provides commercial real estate loans, including owner-occupied, investment properties, and multifamily residential real estate loans; construction, land, and land development loans; one- to four-family residential real estate lending; commercial business loans; agricultural loans; consumer and other loans, such as home equity lines of credit, automobile, and boat and recreational vehicle loans, as well as loans secured by deposit accounts; and small business administration loans. In addition, it provides electronic and digital banking services comprising debit cards and ATMs, internet banking, remote deposit, and mobile banking services. The company was founded in 1890 and is based in Walla Walla, Washington.