Financial Review: Northwest Bancshares (NWBI) & Its Rivals

Northwest Bancshares (NASDAQ: NWBI) is one of 254 public companies in the “Banks” industry, but how does it contrast to its competitors? We will compare Northwest Bancshares to related businesses based on the strength of its valuation, institutional ownership, profitability, analyst recommendations, earnings, risk and dividends.

Dividends

Northwest Bancshares pays an annual dividend of $0.64 per share and has a dividend yield of 3.8%. Northwest Bancshares pays out 67.4% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 1.9% and pay out 34.3% of their earnings in the form of a dividend.

Earnings and Valuation

This table compares Northwest Bancshares and its competitors revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Northwest Bancshares $430.99 million $49.66 million 17.60
Northwest Bancshares Competitors $6.58 billion $992.88 million 79.70

Northwest Bancshares’ competitors have higher revenue and earnings than Northwest Bancshares. Northwest Bancshares is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Northwest Bancshares and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Northwest Bancshares 20.59% 7.54% 0.94%
Northwest Bancshares Competitors 18.41% 8.25% 0.94%

Volatility and Risk

Northwest Bancshares has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500. Comparatively, Northwest Bancshares’ competitors have a beta of 0.87, meaning that their average share price is 13% less volatile than the S&P 500.

Insider and Institutional Ownership

64.5% of Northwest Bancshares shares are held by institutional investors. Comparatively, 55.7% of shares of all “Banks” companies are held by institutional investors. 2.0% of Northwest Bancshares shares are held by company insiders. Comparatively, 9.8% of shares of all “Banks” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for Northwest Bancshares and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Northwest Bancshares 1 3 0 0 1.75
Northwest Bancshares Competitors 2106 8178 8233 321 2.36

Northwest Bancshares currently has a consensus price target of $17.00, suggesting a potential upside of 1.67%. As a group, “Banks” companies have a potential upside of 3.78%. Given Northwest Bancshares’ competitors stronger consensus rating and higher probable upside, analysts plainly believe Northwest Bancshares has less favorable growth aspects than its competitors.

Summary

Northwest Bancshares competitors beat Northwest Bancshares on 11 of the 15 factors compared.

Northwest Bancshares Company Profile

Northwest Bancshares, Inc. (Northwest) is a savings and loan holding company. The Company’s principal business consists of attracting deposits and making loans secured by various types of collateral, including real estate and other assets in the markets in which it operates. Its segments include Community Banking and Consumer Finance. The Community Banking segment includes its savings bank subsidiary, Northwest Bank, as well as the subsidiaries of the savings bank that provide similar products and services. The bank is a community-oriented institution that offers a range of personal and business deposit and loan products, including mortgage, consumer, and commercial loans, as well as trust, investment management, actuarial and benefit plan administration, and brokerage services typically offered by a full service financial institution. The Consumer Finance segment comprises Northwest Consumer Discount Company, a subsidiary of Northwest Bank.

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