Webster Financial (NYSE: WBS) is one of 304 public companies in the “Banks” industry, but how does it contrast to its competitors? We will compare Webster Financial to related companies based on the strength of its analyst recommendations, dividends, profitability, valuation, institutional ownership, risk and earnings.

Institutional & Insider Ownership

93.5% of Webster Financial shares are owned by institutional investors. Comparatively, 52.2% of shares of all “Banks” companies are owned by institutional investors. 2.2% of Webster Financial shares are owned by company insiders. Comparatively, 10.4% of shares of all “Banks” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for Webster Financial and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Webster Financial 1 6 2 0 2.11
Webster Financial Competitors 2179 8466 8521 333 2.36

Webster Financial currently has a consensus target price of $54.88, indicating a potential downside of 2.98%. As a group, “Banks” companies have a potential downside of 8.10%. Given Webster Financial’s higher possible upside, analysts clearly believe Webster Financial is more favorable than its competitors.

Dividends

Webster Financial pays an annual dividend of $1.04 per share and has a dividend yield of 1.8%. Webster Financial pays out 40.9% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 1.9% and pay out 34.6% of their earnings in the form of a dividend. Webster Financial has increased its dividend for 6 consecutive years. Webster Financial lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Risk & Volatility

Webster Financial has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500. Comparatively, Webster Financial’s competitors have a beta of 0.79, suggesting that their average share price is 21% less volatile than the S&P 500.

Valuation & Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Webster Financial $1.09 billion $207.12 million 22.27
Webster Financial Competitors $5.50 billion $827.87 million 384.21

Webster Financial’s competitors have higher revenue and earnings than Webster Financial. Webster Financial 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Webster Financial 21.09% 9.89% 0.93%
Webster Financial Competitors 18.73% 8.38% 0.94%

Summary

Webster Financial competitors beat Webster Financial on 10 of the 15 factors compared.

Webster Financial Company Profile

Webster Financial Corporation is a bank and financial holding company. The Company’s segments include Commercial Banking, Community Banking, HSA Bank, Private Banking, and Corporate and Reconciling. The Commercial Banking segment includes middle-market, asset-based lending, commercial real estate, equipment finance, and treasury and payment solutions, which includes government and institutional banking. The Community Banking segment consists of its Personal Banking and Business Banking segments. HSA Bank, a division of its subsidiary, Webster Bank, National Association, offers health savings accounts, health reimbursement accounts, flexible spending accounts, and other financial solutions. Private Banking serves high-net-worth clients, not-for-profit organizations, and business clients with asset management, trust, loan and deposit products, and financial planning services. Its treasury unit and consumer-liquidating portfolio are included in the Corporate and Reconciling segment.

Receive News & Stock Ratings for Webster Financial Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Webster Financial and related stocks with our FREE daily email newsletter.