Financial Analysis: Avidia Bancorp (AVBC) and Its Peers

Avidia Bancorp (NYSE:AVBC) is one of 930 public companies in the “Banks” industry, but how does it compare to its peers? We will compare Avidia Bancorp to similar businesses based on the strength of its profitability, risk, valuation, earnings, institutional ownership, dividends and analyst recommendations.

Dividends

Avidia Bancorp pays an annual dividend of $0.20 per share and has a dividend yield of 0.9%. Avidia Bancorp pays out 21.1% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.8% and pay out 32.4% of their earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Avidia Bancorp and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avidia Bancorp	1	0	0	1	2.50
Avidia Bancorp Competitors	7375	29696	26921	1333	2.34

As a group, “Banks” companies have a potential upside of 4.01%. Given Avidia Bancorp’s peers higher probable upside, analysts clearly believe Avidia Bancorp has less favorable growth aspects than its peers.

Insider & Institutional Ownership

47.7% of shares of all “Banks” companies are held by institutional investors. 9.9% 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Avidia Bancorp	11.51%	4.65%	0.63%
Avidia Bancorp Competitors	14.95%	9.59%	0.92%

Earnings and Valuation

This table compares Avidia Bancorp and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Avidia Bancorp	$147.61 million	-$3.29 million	22.41
Avidia Bancorp Competitors	$9.75 billion	$2.37 billion	26.71

Avidia Bancorp’s peers have higher revenue and earnings than Avidia Bancorp. Avidia 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.

Summary

Avidia Bancorp peers beat Avidia Bancorp on 11 of the 14 factors compared.

Avidia Bancorp Company Profile

Avidia Bancorp Inc. is a chartered stock savings bank. It operates full-service banking offices principally in western Middlesex County and eastern Worcester County, in Massachusetts. Avidia Bancorp Inc. is based in HUDSON, Mass.