WesBanco (NASDAQ:WSBC) and Guaranty Bancshares (NASDAQ:GNTY) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.
This table compares WesBanco and Guaranty Bancshares’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares WesBanco and Guaranty Bancshares’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|WesBanco||$600.97 million||2.27||$158.87 million||$3.06||6.64|
|Guaranty Bancshares||$119.53 million||2.30||$26.28 million||$2.25||11.10|
WesBanco has higher revenue and earnings than Guaranty Bancshares. WesBanco is trading at a lower price-to-earnings ratio than Guaranty Bancshares, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
58.4% of WesBanco shares are owned by institutional investors. Comparatively, 22.7% of Guaranty Bancshares shares are owned by institutional investors. 3.1% of WesBanco shares are owned by company insiders. Comparatively, 29.6% of Guaranty Bancshares shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
WesBanco pays an annual dividend of $1.28 per share and has a dividend yield of 6.3%. Guaranty Bancshares pays an annual dividend of $0.76 per share and has a dividend yield of 3.0%. WesBanco pays out 41.8% of its earnings in the form of a dividend. Guaranty Bancshares pays out 33.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. WesBanco has increased its dividend for 9 consecutive years and Guaranty Bancshares has increased its dividend for 2 consecutive years. WesBanco is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a breakdown of recent ratings and recommmendations for WesBanco and Guaranty Bancshares, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
WesBanco presently has a consensus target price of $35.75, suggesting a potential upside of 75.85%. Guaranty Bancshares has a consensus target price of $33.33, suggesting a potential upside of 33.49%. Given WesBanco’s stronger consensus rating and higher probable upside, research analysts clearly believe WesBanco is more favorable than Guaranty Bancshares.
Volatility & Risk
WesBanco has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, Guaranty Bancshares has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500.
WesBanco beats Guaranty Bancshares on 11 of the 17 factors compared between the two stocks.
WesBanco Company Profile
WesBanco, Inc. operates as the holding company for WesBanco Bank, Inc. that provides retail banking, corporate banking, personal and corporate trust, brokerage, and mortgage banking and insurance services in the United States. It operates in two segments, Community Banking, and Trust and Investment Services. The company offers commercial demand, individual demand, and time deposit accounts; money market accounts; interest bearing and non-interest bearing demand deposits, as well as savings deposits; and certificates of deposit. It also provides commercial real estate loans; commercial and industrial loans; residential real estate loans, including loans to purchase, construct, or refinance borrower's home; home equity lines of credit; installment loans to finance the purchases of automobiles, trucks, motorcycles, boats, and other recreational vehicles, as well as home equity installment loans, unsecured home improvement loans, and revolving lines of credit; and commercial, mortgage, and individual installment loans. In addition, the company offers trust and investment services, as well as various investment products comprising mutual funds and annuities; and securities brokerage services. Further, WesBanco, Inc., through its non-banking subsidiaries, acts as an agency that specializes in property, casualty, life, and title insurance, as well as benefit plan sales and administration to personal and commercial clients; provides broker dealer and discount brokerage services; holds investment securities and loans; and holds and leases commercial real estate properties, as well as acts as an investment adviser to a family of mutual funds. As of December 31, 2018, the company operated through 209 branches and 202 ATMs in West Virginia, Ohio, western Pennsylvania, Kentucky, and southern Indiana, as well as 4 loan production offices in West Virginia, Ohio, and western Pennsylvania. WesBanco, Inc. was founded in 1870 and is headquartered in Wheeling, West Virginia.
Guaranty Bancshares Company Profile
Guaranty Bancshares, Inc. operates as the bank holding company for Guaranty Bank & Trust, N.A. that provides a range of commercial and consumer banking products and services for small- and medium-sized businesses, professionals, and individuals. It offers various deposit products, such as checking and savings, money market, and business accounts, as well as certificates of deposit; and loan products comprising commercial and industrial, construction and development, 1-4 family residential, commercial real estate, farmland and agricultural, multi-family residential, and consumer loans. The company also provides trust, wealth management, and retirement plan services; online, mobile, and telephone banking, as well as automated teller machine services; debit cards; night depository and direct deposit services; cashier's checks and letters of credit; and treasury management services, including wire transfer, positive pay, remote deposit capture, and automated clearinghouse services. As of December 31, 2018, it operated 30 full service banking locations in East Texas, Central Texas, the Dallas/Fort Worth metropolitan statistical area (MSA), and the Houston MSA. The company was founded in 1913 and is headquartered in Addison, Texas.
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