Meridian Bancorp (EBSB) vs. Its Competitors Financial Comparison

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

Insider and Institutional Ownership

67.6% of Meridian Bancorp shares are owned by institutional investors. Comparatively, 50.1% of shares of all “National commercial banks” companies are owned by institutional investors. 5.3% of Meridian Bancorp shares are owned by company insiders. Comparatively, 10.1% of shares of all “National commercial banks” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Meridian Bancorp has a beta of 0.26, meaning that its stock price is 74% less volatile than the S&P 500. Comparatively, Meridian Bancorp’s competitors have a beta of 0.73, meaning that their average stock price is 27% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets 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 991 4825 4531 231 2.38

Meridian Bancorp presently has a consensus price target of $21.50, suggesting a potential upside of 11.69%. As a group, “National commercial banks” companies have a potential upside of 2.12%. Given Meridian Bancorp’s higher possible upside, research analysts plainly believe Meridian Bancorp is more favorable than its competitors.

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 21.09% 8.20% 1.02%
Meridian Bancorp Competitors -6.95% -27.55% 0.06%

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 36.4% of their earnings in the form of a dividend.

Earnings and Valuation

This table compares Meridian Bancorp and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Meridian Bancorp $208.17 million $42.94 million 20.26
Meridian Bancorp Competitors $7.35 billion $1.23 billion 17.32

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.

Summary

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

About Meridian Bancorp

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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