Veritex (NASDAQ: VBTX) is one of 310 publicly-traded companies in the “Banks” industry, but how does it compare to its peers? We will compare Veritex to similar companies based on the strength of its earnings, valuation, institutional ownership, dividends, analyst recommendations, risk and profitability.

Profitability

This table compares Veritex and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Veritex 21.85% 5.30% 0.90%
Veritex Competitors 18.73% 8.34% 0.93%

Analyst Ratings

This is a summary of current ratings and recommmendations for Veritex and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Veritex 0 1 2 0 2.67
Veritex Competitors 2144 8437 8441 331 2.36

Veritex currently has a consensus target price of $31.83, suggesting a potential upside of 15.38%. As a group, “Banks” companies have a potential downside of 5.64%. Given Veritex’s stronger consensus rating and higher possible upside, equities analysts plainly believe Veritex is more favorable than its peers.

Insider and Institutional Ownership

65.8% of Veritex shares are held by institutional investors. Comparatively, 52.4% of shares of all “Banks” companies are held by institutional investors. 6.9% of Veritex shares are held by insiders. Comparatively, 10.4% 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 will outperform the market over the long term.

Valuation & Earnings

This table compares Veritex and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Veritex $53.10 million $12.55 million 28.74
Veritex Competitors $5.51 billion $821.37 million 372.56

Veritex’s peers have higher revenue and earnings than Veritex. Veritex is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Risk & Volatility

Veritex has a beta of 1.62, indicating that its stock price is 62% more volatile than the S&P 500. Comparatively, Veritex’s peers have a beta of 0.80, indicating that their average stock price is 20% less volatile than the S&P 500.

Summary

Veritex peers beat Veritex on 7 of the 13 factors compared.

Veritex Company Profile

Veritex Holdings, Inc. is a bank holding company. The Company, through its subsidiary, Veritex Community Bank (the Bank), a Texas state chartered bank, provides relationship-driven commercial banking products and services tailored to meet the needs of small to medium-sized businesses and professionals. It operates through community banking segment. The Bank provides a range of banking services to individual and corporate customers, which include commercial and retail lending, and the acceptance of checking and savings deposits. It offers a suite of online banking solutions, including access to account balances, online transfers, online bill payment and electronic delivery of customer statements, as well as automated teller machines, and banking by telephone, mail and personal appointment. It also offers debit cards, direct deposit, cashier’s checks and letters of credit, as well as treasury management services, including wire transfer services and automated clearinghouse services.

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