Head to Head Analysis: Northpointe Bancshares (NYSE:NPB) vs. Banner (NASDAQ:BANR)

Banner (NASDAQ:BANR) and Northpointe Bancshares (NYSE:NPB) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, dividends and valuation.

Dividends

Banner pays an annual dividend of $2.00 per share and has a dividend yield of 3.1%. Northpointe Bancshares pays an annual dividend of $0.10 per share and has a dividend yield of 0.6%. Banner pays out 36.4% of its earnings in the form of a dividend. Northpointe Bancshares pays out 6.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Earnings and Valuation

This table compares Banner and Northpointe Bancshares”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Banner	$832.99 million	2.67	$168.90 million	$5.49	11.88
Northpointe Bancshares	$390.45 million	1.54	$55.16 million	$1.57	11.15

Banner has higher revenue and earnings than Northpointe Bancshares. Northpointe Bancshares is trading at a lower price-to-earnings ratio than Banner, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

87.3% of Banner shares are held by institutional investors. 1.7% of Banner shares are held by insiders. Comparatively, 18.4% of Northpointe Bancshares shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Banner and Northpointe Bancshares’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Banner	21.80%	10.32%	1.17%
Northpointe Bancshares	16.09%	12.43%	1.16%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Banner and Northpointe Bancshares, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Banner	0	4	3	0	2.43
Northpointe Bancshares	1	1	2	0	2.25

Banner currently has a consensus price target of $71.17, suggesting a potential upside of 9.14%. Northpointe Bancshares has a consensus price target of $19.08, suggesting a potential upside of 9.05%. Given Banner’s stronger consensus rating and higher possible upside, analysts plainly believe Banner is more favorable than Northpointe Bancshares.

Summary

Banner beats Northpointe Bancshares on 12 of the 15 factors compared between the two stocks.

About Banner

Banner Corporation operates as the bank holding company for Banner Bank that engages in the provision of commercial banking and financial products and services to individuals, businesses, and public sector entities in the United States. It accepts various deposit instruments, including interest-bearing and non-interest-bearing checking accounts, money market deposit accounts, regular savings accounts, and certificates of deposit, as well as treasury management services and retirement savings plans. The company also provides commercial real estate loans, including owner-occupied, investment properties, and multifamily residential real estate loans; construction, land, and land development loans; one- to four-family residential real estate lending; commercial business loans; agricultural loans; consumer and other loans, such as home equity lines of credit, automobile, and boat and recreational vehicle loans, as well as loans secured by deposit accounts; and small business administration loans. In addition, it provides electronic and digital banking services comprising debit cards and ATMs, internet banking, remote deposit, and mobile banking services. The company was founded in 1890 and is based in Walla Walla, Washington.

About Northpointe Bancshares

Northpointe Bancshares, Inc. operates as a bank holding company. It offers a nationwide mortgage purchase program, residential mortgage loans, digital deposit banking to retail customers and custodial deposit services. The company was founded by Charles A. Williams in 1998 and is headquartered in Grand Rapids, MI.