Equity Bancshares (NASDAQ:EQBK – Get Free Report) and Renasant (NASDAQ:RNST – Get Free Report) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.
Institutional and Insider Ownership
71.8% of Equity Bancshares shares are owned by institutional investors. Comparatively, 77.3% of Renasant shares are owned by institutional investors. 6.6% of Equity Bancshares shares are owned by insiders. Comparatively, 2.8% of Renasant shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Equity Bancshares and Renasant”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Equity Bancshares | $206.96 million | 4.28 | $62.62 million | $1.31 | 35.42 |
| Renasant | $985.85 million | 3.91 | $195.46 million | $2.12 | 19.12 |
Renasant has higher revenue and earnings than Equity Bancshares. Renasant is trading at a lower price-to-earnings ratio than Equity Bancshares, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Equity Bancshares has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500. Comparatively, Renasant has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500.
Profitability
This table compares Equity Bancshares and Renasant’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Equity Bancshares | 18.66% | 14.64% | 1.31% |
| Renasant | 17.91% | 6.58% | 0.93% |
Analyst Ratings
This is a summary of current ratings and price targets for Equity Bancshares and Renasant, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Equity Bancshares | 0 | 3 | 1 | 0 | 2.25 |
| Renasant | 0 | 0 | 3 | 1 | 3.25 |
Equity Bancshares currently has a consensus target price of $52.67, suggesting a potential upside of 13.49%. Renasant has a consensus target price of $43.00, suggesting a potential upside of 6.07%. Given Equity Bancshares’ higher probable upside, analysts clearly believe Equity Bancshares is more favorable than Renasant.
Dividends
Equity Bancshares pays an annual dividend of $0.72 per share and has a dividend yield of 1.6%. Renasant pays an annual dividend of $0.92 per share and has a dividend yield of 2.3%. Equity Bancshares pays out 55.0% of its earnings in the form of a dividend. Renasant pays out 43.4% 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. Equity Bancshares has increased its dividend for 3 consecutive years. Renasant is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Renasant beats Equity Bancshares on 11 of the 18 factors compared between the two stocks.
About Equity Bancshares
Equity Bancshares, Inc. operates as the bank holding company for Equity Bank that provides a range of banking, mortgage banking, and financial services to individual and corporate customers. The company accepts various demand, savings, money market, and time deposits. Its loan products include commercial and industrial, commercial real estate, commercial lines of credit, working capital, term, equipment and aircraft financing, acquisition, expansion and development, borrowing base, real estate construction, homebuilder, agricultural, government guaranteed, and other loan products. The company's loan products also comprise 1 4 family residential mortgages, agriculture, consumer, residential real estate mortgage, and agricultural real estate and production loans. It also provides debit and credit cards; insurance brokerage; trust and wealth management; online banking solutions, such as access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; mobile banking solutions comprising remote check deposits with mobile bill pay; ATMs; and treasury management, wire transfer, automated clearing house, and stop payment services. In addition, the company offers cash management deposit products, such as lockbox, remote deposit capture, positive pay, reverse positive pay, account reconciliation services, zero balance accounts, and sweep accounts, as well as banking services through telephone, mail, and personal appointments. It operates a network of branches in Arkansas, Kansas, Missouri, and Oklahoma. Equity Bancshares, Inc. was incorporated in 2002 and is headquartered in Wichita, Kansas.
About Renasant
Renasant Corporation operates as a bank holding company for Renasant Bank that provides a range of financial, wealth management, fiduciary, and insurance services to retail and commercial customers. The company operates through Community Banks, Insurance, and Wealth Management segments. The Community Banks segment offers checking and savings accounts, business and personal loans, asset-based lending, and factoring equipment leasing services, as well as safe deposit and night depository facilities. It also provides commercial, financial, and agricultural loans; equipment financing and leasing; real estate1-4 family mortgage; real estatecommercial mortgage; real estateconstruction loans for the construction of single family residential properties, multi-family properties, and commercial projects; installment loans to individuals; and interim construction loans, as well as automated teller machine (ATM), online and mobile banking, call center, and treasury management services. The Insurance segment provides insurance agency services, such as commercial and personal insurance products through insurance carriers. The Wealth Management segment offers a range of wealth management and fiduciary services, including administration and management of trust accounts, such as personal and corporate benefit accounts, and custodial accounts, as well as accounting and money management for trust accounts; annuities, mutual funds, and other investment services through a third party broker-dealer; administrative and compliance services; and qualified retirement plans, IRAs, employee benefit plans, personal trusts, and estates. Renasant Corporation was founded in 1904 and is headquartered in Tupelo, Mississippi.
Receive News & Ratings for Equity Bancshares Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Equity Bancshares and related companies with MarketBeat.com's FREE daily email newsletter.
