Sierra Bancorp (NASDAQ:BSRR) and Renasant (NASDAQ:RNST) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, dividends, analyst recommendations and valuation.
This table compares Sierra Bancorp and Renasant’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current recommendations and price targets for Sierra Bancorp and Renasant, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Sierra Bancorp currently has a consensus target price of $31.00, suggesting a potential upside of 20.62%. Renasant has a consensus target price of $37.00, suggesting a potential upside of 6.23%. Given Sierra Bancorp’s stronger consensus rating and higher possible upside, research analysts clearly believe Sierra Bancorp is more favorable than Renasant.
Sierra Bancorp pays an annual dividend of $0.72 per share and has a dividend yield of 2.8%. Renasant pays an annual dividend of $0.84 per share and has a dividend yield of 2.4%. Sierra Bancorp pays out 37.5% of its earnings in the form of a dividend. Renasant pays out 28.0% 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. Sierra Bancorp has increased its dividend for 6 consecutive years and Renasant has increased its dividend for 5 consecutive years. Sierra Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation and Earnings
This table compares Sierra Bancorp and Renasant’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sierra Bancorp||$123.20 million||3.20||$29.68 million||$1.92||13.39|
|Renasant||$605.82 million||3.37||$146.92 million||$3.00||11.61|
Renasant has higher revenue and earnings than Sierra Bancorp. Renasant is trading at a lower price-to-earnings ratio than Sierra Bancorp, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
52.8% of Sierra Bancorp shares are held by institutional investors. Comparatively, 61.8% of Renasant shares are held by institutional investors. 10.3% of Sierra Bancorp shares are held by insiders. Comparatively, 3.6% of Renasant shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Volatility and Risk
Sierra Bancorp has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500. Comparatively, Renasant has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500.
Sierra Bancorp beats Renasant on 9 of the 17 factors compared between the two stocks.
Sierra Bancorp Company Profile
Sierra Bancorp operates as the bank holding company for Bank of the Sierra that provides retail and commercial banking services to individuals and businesses in California. The company accepts various deposit products, such as checking accounts, savings accounts, money market demand accounts, time deposits, retirement accounts, and sweep accounts. Its loan products include real estate, commercial, mortgage warehouse, agricultural, industrial, and consumer loans. The company also offers automated teller machines; electronic point-of-sale payment alternatives; online and automated telephone banking services; and remote deposit capture and automated payroll services for business customers. As of December 31, 2018, it operated 40 full service branches, an online branch, an agricultural credit center, and an SBA lending unit. Sierra Bancorp was founded in 1977 and is headquartered in Porterville, California.
Renasant Company Profile
Renasant Corporation operates as a bank holding company for Renasant Bank, which provides a range of financial, wealth management, fiduciary, and insurance services to retail and commercial customers. It operates through three segments: Community Banks, Insurance, and Wealth Management. The Community Banks segment offers checking and savings, money market, individual retirement, and health savings accounts, 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 business and personal, and interim construction loans, as well as automated teller machine (ATM), online and mobile banking, call center, and cash management services. The Insurance segment provides insurance agency services, including commercial and personal insurance products through third-party insurance carriers. The Wealth Management segment offers range of wealth management and fiduciary services, which include administration and management of trust accounts comprising personal and corporate benefit accounts, self-directed IRA's, and custodial accounts; administers qualified retirement plans, profit sharing and other employee benefit plans, personal trusts, and estates; and annuities, mutual funds, and other investment services through a third party broker-dealer. As of December 31, 2017, the company had 180 banking, insurance, and financial services offices located in Mississippi, Tennessee, Alabama, Florida, and Georgia; 136 full-service branches and 13 limited-service branches; and 136 ATMs at on-premise locations and 16 ATMs located at off-premise sites. Renasant Corporation was founded in 1904 and is based in Tupelo, Mississippi.
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