East West Bancorp (NASDAQ: EWBC) is one of 327 publicly-traded companies in the “Banks” industry, but how does it weigh in compared to its competitors? We will compare East West Bancorp to related companies based on the strength of its risk, institutional ownership, dividends, valuation, profitability, analyst recommendations and earnings.

Profitability

This table compares East West Bancorp and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
East West Bancorp 35.06% 13.12% 1.33%
East West Bancorp Competitors 18.95% 8.79% 0.93%

Analyst Ratings

This is a summary of recent ratings for East West Bancorp and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
East West Bancorp 1 5 4 0 2.30
East West Bancorp Competitors 1984 7889 8082 306 2.37

East West Bancorp currently has a consensus target price of $63.25, indicating a potential upside of 6.27%. As a group, “Banks” companies have a potential downside of 7.06%. Given East West Bancorp’s higher probable upside, equities analysts plainly believe East West Bancorp is more favorable than its competitors.

Volatility & Risk

East West Bancorp has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500. Comparatively, East West Bancorp’s competitors have a beta of 0.78, meaning that their average stock price is 22% less volatile than the S&P 500.

Valuation and Earnings

This table compares East West Bancorp and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
East West Bancorp $1.22 billion N/A 17.05
East West Bancorp Competitors N/A N/A 18.90

East West Bancorp is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Dividends

East West Bancorp pays an annual dividend of $0.80 per share and has a dividend yield of 1.3%. East West Bancorp pays out 22.9% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 2.0% and pay out 37.1% of their earnings in the form of a dividend.

Institutional and Insider Ownership

90.5% of East West Bancorp shares are owned by institutional investors. Comparatively, 52.5% of shares of all “Banks” companies are owned by institutional investors. 0.9% of East West Bancorp shares are owned by insiders. Comparatively, 10.5% of shares of all “Banks” companies are owned by 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

East West Bancorp beats its competitors on 8 of the 14 factors compared.

About East West Bancorp

East West Bancorp, Inc. is a bank holding company. The Company’s principal business is to serve as a holding company for East West Bank (the Bank) and other banking or banking-related subsidiaries. The Bank is a California state-chartered bank, which operates in the United States and Greater China. The Bank provides a range of personal and commercial banking services to businesses, business executives, professionals, and other individuals. It operates through three segments: Retail Banking, Commercial Banking and Other. The Retail Banking segment focuses primarily on retail operations through the Bank’s branch network. The Commercial Banking segment primarily generates commercial and industrial (C&I) loans and commercial real estate (CRE) loans through the domestic commercial lending operations in California, New York, Texas, Washington, Massachusetts, Nevada and Georgia, and through the foreign commercial lending operations in China and Hong Kong.

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