Head to Head Review: Sun Bancorp, Inc. /NJ (SNBC) & Eagle Bancorp (EGBN)

Sun Bancorp, Inc. /NJ (NASDAQ: SNBC) and Eagle Bancorp (NASDAQ:EGBN) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.

Profitability

This table compares Sun Bancorp, Inc. /NJ and Eagle Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sun Bancorp, Inc. /NJ 72.60% 19.02% 2.77%
Eagle Bancorp 32.40% 12.37% 1.54%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Sun Bancorp, Inc. /NJ and Eagle Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sun Bancorp, Inc. /NJ 0 0 2 0 3.00
Eagle Bancorp 0 0 4 0 3.00

Sun Bancorp, Inc. /NJ currently has a consensus target price of $29.75, indicating a potential upside of 22.43%. Eagle Bancorp has a consensus target price of $66.67, indicating a potential upside of 15.14%. Given Sun Bancorp, Inc. /NJ’s higher possible upside, analysts clearly believe Sun Bancorp, Inc. /NJ is more favorable than Eagle Bancorp.

Dividends

Sun Bancorp, Inc. /NJ pays an annual dividend of $0.04 per share and has a dividend yield of 0.2%. Eagle Bancorp does not pay a dividend. Sun Bancorp, Inc. /NJ pays out 1.2% of its earnings in the form of a dividend.

Volatility and Risk

Sun Bancorp, Inc. /NJ has a beta of 0.24, meaning that its stock price is 76% less volatile than the S&P 500. Comparatively, Eagle Bancorp has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500.

Earnings and Valuation

This table compares Sun Bancorp, Inc. /NJ and Eagle Bancorp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sun Bancorp, Inc. /NJ $83.00 million 5.59 $61.41 million $3.23 7.52
Eagle Bancorp $313.09 million 6.32 $97.70 million $3.22 17.98

Eagle Bancorp has higher revenue and earnings than Sun Bancorp, Inc. /NJ. Sun Bancorp, Inc. /NJ is trading at a lower price-to-earnings ratio than Eagle Bancorp, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

70.3% of Sun Bancorp, Inc. /NJ shares are owned by institutional investors. Comparatively, 68.2% of Eagle Bancorp shares are owned by institutional investors. 12.5% of Sun Bancorp, Inc. /NJ shares are owned by company insiders. Comparatively, 8.4% of Eagle Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Sun Bancorp, Inc. /NJ beats Eagle Bancorp on 8 of the 15 factors compared between the two stocks.

About Sun Bancorp, Inc. /NJ

Sun Bancorp, Inc. is a bank holding company. The Company’s principal subsidiary is Sun National Bank (the Bank). Through the Bank, the Company provides an array of community banking services to consumers, small businesses and mid-size companies. The Company’s lending services to businesses include term loans, lines of credit and commercial mortgages. The Company’s commercial deposit services include business checking and money market accounts, and cash management solutions, such as online banking, electronic bill payment and wire transfer services, lockbox services, remote deposit and controlled disbursement services. The Company’s lending services to consumers consist primarily of lines of credit of overdraft sweeps. The Company’s consumer deposit services include checking accounts, savings accounts, money market accounts, certificates of deposit and individual retirement accounts.

About Eagle Bancorp

Eagle Bancorp, Inc. is a bank holding company for EagleBank (the Bank). The Bank is the Company’s principal operating subsidiary. The Bank is a chartered commercial bank. As of December 31, 2016, the Bank operated 21 banking offices: seven in Montgomery County, Maryland; five located in the District of Columbia, and nine in Northern Virginia. The Bank offers a range of commercial banking services to its business and professional clients, as well as consumer banking services to individuals living or working in the service area. The Bank also provides commercial banking services to proprietorships, businesses, partnerships, corporations, non-profit organizations and associations, and investors living and working in and near the Bank’s primary service area. The Bank offers a range of retail banking services to accommodate the individual needs of both corporate customers, as well as the community the Bank serves. It also offers online banking, mobile banking and remote deposit services.

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