Critical Review: Howard Bancorp (HBMD) & The Competition
Howard Bancorp (NASDAQ: HBMD) is one of 300 publicly-traded companies in the “Banks” industry, but how does it weigh in compared to its peers? We will compare Howard Bancorp to similar businesses based on the strength of its institutional ownership, earnings, analyst recommendations, valuation, profitability, dividends and risk.
Risk and Volatility
Howard Bancorp has a beta of 0.2, suggesting that its stock price is 80% less volatile than the S&P 500. Comparatively, Howard Bancorp’s peers have a beta of 0.79, suggesting that their average stock price is 21% less volatile than the S&P 500.
This table compares Howard Bancorp and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Howard Bancorp Competitors||18.72%||8.45%||0.95%|
Valuation & Earnings
This table compares Howard Bancorp and its peers gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Howard Bancorp||$53.52 million||$5.30 million||32.43|
|Howard Bancorp Competitors||$5.50 billion||$827.87 million||399.64|
Howard Bancorp’s peers have higher revenue and earnings than Howard Bancorp. Howard Bancorp 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.
Institutional & Insider Ownership
64.6% of Howard Bancorp shares are held by institutional investors. Comparatively, 52.2% of shares of all “Banks” companies are held by institutional investors. 10.6% of Howard Bancorp shares are held by company insiders. Comparatively, 10.4% of shares of all “Banks” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This is a summary of current ratings and target prices for Howard Bancorp and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Howard Bancorp Competitors||2187||8525||8526||333||2.36|
Howard Bancorp currently has a consensus price target of $22.00, suggesting a potential downside of 3.08%. As a group, “Banks” companies have a potential downside of 7.31%. Given Howard Bancorp’s stronger consensus rating and higher possible upside, analysts plainly believe Howard Bancorp is more favorable than its peers.
Howard Bancorp peers beat Howard Bancorp on 8 of the 13 factors compared.
About Howard Bancorp
Howard Bancorp, Inc. is the bank holding company of Howard Bank. The Company’s primary business is to own all of the capital stock of Howard Bank. The Company operates through Community Banking segment. Howard Bank is a trust company, which has approximately four operating subsidiaries. The Company offers a range of services to its customers, including wire transfer services, automated teller machine (ATM) and check cards, ATMs at all of its service branch locations, safe deposit boxes at all service locations and credit cards through a third-party processor. Additionally, it provides Internet banking services to its customers and merchant card services for its business customers. The Company’s primary market focus is on making loans to and gathering deposits from small and medium size businesses and their owners, professionals and executives, and high-net-worth individuals in its primary market area.
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