Veritex (NASDAQ:VBTX) and The Competition Financial Analysis

Veritex (NASDAQ: VBTX) is one of 307 public companies in the “Banks” industry, but how does it weigh in compared to its peers? We will compare Veritex to similar businesses based on the strength of its earnings, dividends, analyst recommendations, risk, profitability, valuation and institutional ownership.

Analyst Ratings

This is a summary of current recommendations for Veritex and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Veritex 0 1 2 0 2.67
Veritex Competitors 2194 8603 8573 337 2.36

Veritex currently has a consensus target price of $31.83, indicating a potential upside of 15.17%. As a group, “Banks” companies have a potential downside of 7.10%. Given Veritex’s stronger consensus rating and higher possible upside, research analysts clearly believe Veritex is more favorable than its peers.

Risk and Volatility

Veritex has a beta of 1.62, suggesting that its share price is 62% more volatile than the S&P 500. Comparatively, Veritex’s peers have a beta of 0.79, suggesting that their average share price is 21% less volatile than the S&P 500.

Earnings and Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Veritex $53.10 million $12.55 million 29.09
Veritex Competitors $5.50 billion $827.87 million 383.19

Veritex’s peers have higher revenue and earnings than Veritex. Veritex 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.

Insider and Institutional Ownership

65.8% of Veritex shares are held by institutional investors. Comparatively, 52.1% of shares of all “Banks” companies are held by institutional investors. 6.9% of Veritex shares are held by company insiders. Comparatively, 10.4% of shares of all “Banks” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Veritex 21.85% 5.30% 0.90%
Veritex Competitors 18.68% 8.33% 0.94%

Summary

Veritex peers beat Veritex on 7 of the 13 factors compared.

About Veritex

Veritex Holdings, Inc. is a bank holding company. The Company, through its subsidiary, Veritex Community Bank (the Bank), a Texas state chartered bank, provides relationship-driven commercial banking products and services tailored to meet the needs of small to medium-sized businesses and professionals. It operates through community banking segment. The Bank provides a range of banking services to individual and corporate customers, which include commercial and retail lending, and the acceptance of checking and savings deposits. It offers a suite of online banking solutions, including access to account balances, online transfers, online bill payment and electronic delivery of customer statements, as well as automated teller machines, and banking by telephone, mail and personal appointment. It also offers debit cards, direct deposit, cashier’s checks and letters of credit, as well as treasury management services, including wire transfer services and automated clearinghouse services.

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