Contrasting Meridian Bancorp (EBSB) & Its Rivals

Meridian Bancorp (NASDAQ: EBSB) is one of 137 publicly-traded companies in the “National commercial banks” industry, but how does it weigh in compared to its competitors? We will compare Meridian Bancorp to related companies based on the strength of its institutional ownership, profitability, valuation, dividends, risk, analyst recommendations and earnings.

Dividends

Meridian Bancorp pays an annual dividend of $0.20 per share and has a dividend yield of 1.0%. Meridian Bancorp pays out 21.1% of its earnings in the form of a dividend. As a group, “National commercial banks” companies pay a dividend yield of 2.0% and pay out 34.6% of their earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings and recommmendations for Meridian Bancorp and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Meridian Bancorp 0 2 1 0 2.33
Meridian Bancorp Competitors 974 4711 4435 224 2.38

Meridian Bancorp presently has a consensus price target of $21.50, suggesting a potential upside of 6.44%. As a group, “National commercial banks” companies have a potential upside of 4.23%. Given Meridian Bancorp’s higher probable upside, research analysts plainly believe Meridian Bancorp is more favorable than its competitors.

Valuation & Earnings

This table compares Meridian Bancorp and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Meridian Bancorp $208.17 million $42.94 million 21.26
Meridian Bancorp Competitors $7.04 billion $1.20 billion 17.08

Meridian Bancorp’s competitors have higher revenue and earnings than Meridian Bancorp. Meridian Bancorp is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Institutional & Insider Ownership

67.1% of Meridian Bancorp shares are held by institutional investors. Comparatively, 50.4% of shares of all “National commercial banks” companies are held by institutional investors. 5.1% of Meridian Bancorp shares are held by insiders. Comparatively, 9.5% of shares of all “National commercial banks” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Meridian Bancorp has a beta of 0.24, suggesting that its stock price is 76% less volatile than the S&P 500. Comparatively, Meridian Bancorp’s competitors have a beta of 0.72, suggesting that their average stock price is 28% less volatile than the S&P 500.

Profitability

This table compares Meridian Bancorp and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Meridian Bancorp 20.63% 7.90% 1.01%
Meridian Bancorp Competitors -7.71% -28.06% 0.03%

Summary

Meridian Bancorp competitors beat Meridian Bancorp on 8 of the 15 factors compared.

Meridian Bancorp Company Profile

Meridian Bancorp, Inc. operates as the holding company for East Boston Savings Bank that provides various financial products and services for individuals and businesses primarily in Essex, Middlesex, Norfolk, and Suffolk Counties, Massachusetts. The company accepts various deposit products, including non-interest-bearing demand deposits, such as checking accounts; interest-bearing demand accounts comprising NOW and money market accounts; savings accounts; and certificates of deposits, as well as commercial checking accounts. Its loan portfolio includes commercial real estate loans, which are secured by properties used for business purposes, such as office buildings, industrial facilities, and retail facilities; one- to four-family residential loans comprising mortgage loans that enable borrowers to purchase or refinance existing homes; multi-family real estate loans; construction loans; commercial and industrial loans; home equity lines of credit; and consumer loans that include automobile loans, loans secured by savings or certificate accounts, credit builders, and annuity and overdraft loans. In addition, the company offers non-deposit financial products, which comprise mutual funds, annuities, stocks, and bonds through a third-party broker-dealer; and long-term care insurance products. Further, it is also involved in the securities transactions business; and holding foreclosed real estate properties. As of March 1, 2018, the company operated 33 full-service locations, as well 1 mobile branch and 3 loan centers. Meridian Bancorp, Inc. was founded in 1848 and is headquartered in Peabody, Massachusetts.

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