VersaBank (VBNK) & Its Rivals Head-To-Head Contrast

VersaBank (NASDAQ:VBNK) is one of 919 public companies in the “Banks” industry, but how does it weigh in compared to its competitors? We will compare VersaBank to related businesses based on the strength of its valuation, institutional ownership, analyst recommendations, profitability, dividends, risk and earnings.

Dividends

VersaBank pays an annual dividend of $0.07 per share and has a dividend yield of 0.3%. VersaBank pays out 9.2% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.3% and pay out 28.9% of their earnings in the form of a dividend.

Insider and Institutional Ownership

56.9% of VersaBank shares are held by institutional investors. Comparatively, 48.0% of shares of all “Banks” companies are held by institutional investors. 5.3% of VersaBank shares are held by insiders. Comparatively, 9.8% of shares of all “Banks” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares VersaBank and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
VersaBank	$217.14 million	$20.32 million	29.16
VersaBank Competitors	$37.92 billion	$2.42 billion	17.44

VersaBank’s competitors have higher revenue and earnings than VersaBank. VersaBank 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.

Risk and Volatility

VersaBank has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500. Comparatively, VersaBank’s competitors have a beta of 0.61, indicating that their average stock price is 39% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for VersaBank and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VersaBank	0	1	3	0	2.75
VersaBank Competitors	7470	30199	27764	1466	2.35

VersaBank currently has a consensus price target of $24.00, indicating a potential upside of 8.30%. As a group, “Banks” companies have a potential upside of 16.22%. Given VersaBank’s competitors higher possible upside, analysts plainly believe VersaBank has less favorable growth aspects than its competitors.

Profitability

This table compares VersaBank and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
VersaBank	9.92%	8.66%	0.75%
VersaBank Competitors	15.64%	9.43%	0.93%

Summary

VersaBank competitors beat VersaBank on 9 of the 15 factors compared.

VersaBank Company Profile

VersaBank provides various banking products and services in Canada and the United States. It offers deposit products, such as web-based chequing accounts, guaranteed investment certificates, registered retirement savings plans, and tax-free savings accounts, as well as deposit insurance products. The company also provides lending services, including point of sale financing that covers purchasing loan and lease receivables from finance companies operating in various industries; commercial banking services comprising commercial real estate, public sector/infrastructure financing, and condominium financing; and residential mortgages. In addition, it offers cybersecurity services. The company was formerly known as Pacific & Western Bank of Canada and changed its name to VersaBank in May 2016. VersaBank was incorporated in 1979 and is headquartered in London, Canada.