Analyzing Sterling Bancorp (NYSE:STL) and Sterling Financial (STSA)

Sterling Financial (NASDAQ: STSA) and Sterling Bancorp (NYSE:STL) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, earnings, analyst recommendations, valuation and risk.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Sterling Financial and Sterling Bancorp, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sterling Financial 0 0 0 0 N/A
Sterling Bancorp 0 1 8 0 2.89

Sterling Bancorp has a consensus price target of $27.42, suggesting a potential upside of 19.46%. Given Sterling Bancorp’s higher probable upside, analysts clearly believe Sterling Bancorp is more favorable than Sterling Financial.

Dividends

Sterling Bancorp pays an annual dividend of $0.28 per share and has a dividend yield of 1.2%. Sterling Financial does not pay a dividend. Sterling Bancorp pays out 23.3% of its earnings in the form of a dividend.

Profitability

This table compares Sterling Financial and Sterling Bancorp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sterling Financial N/A N/A N/A
Sterling Bancorp 28.40% 8.62% 1.11%

Institutional and Insider Ownership

90.9% of Sterling Bancorp shares are held by institutional investors. 3.7% of Sterling Bancorp shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Sterling Financial and Sterling Bancorp’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Sterling Financial N/A N/A N/A N/A N/A
Sterling Bancorp $474.00 million 6.57 $162.79 million $1.20 19.13

Sterling Bancorp has higher revenue and earnings than Sterling Financial.

Summary

Sterling Bancorp beats Sterling Financial on 9 of the 10 factors compared between the two stocks.

Sterling Financial Company Profile

Sterling Financial Corporation (Sterling) is a bank holding company for Sterling Savings Bank. Sterling Savings Bank is a state-chartered commercial bank. Sterling Savings Bank offers retail and commercial banking products and services, mortgage lending and investment products to individuals, small businesses, commercial organizations and corporations. The Company operates in two segments: Community Banking and Home Loan Division. Its Community Banking segment provides traditional banking services through the retail banking, private banking and commercial banking groups, including the originating and servicing of commercial real estate, owner occupied CRE and C&I loans. The Company’s Home Loan Division originates and sells residential real estate loans through its mortgage banking operations, on both a servicing-retained and servicing-released basis. In Apil 2014, Umpqua Holdings Corp merged with Sterling Financial Corp.

Sterling Bancorp Company Profile

Sterling Bancorp is a financial holding company. The Company is a bank holding company that owns the Sterling National Bank (the Bank). The Bank specializes in the delivery of services and solutions to business owners, their families and consumers within the communities it serves. The Bank offers a line of commercial, business, and consumer banking products and services. The Bank is engaged in the origination of commercial loans and commercial mortgage loans. The Company also originates residential mortgage loans and consumer loans. The Bank offers services in the New York Metro Market, which includes Manhattan and Long Island, and the New York Suburban Market, which consists of Rockland, Orange, Sullivan, Ulster, Putnam and Westchester counties in New York and Bergen County in New Jersey. Its deposit products include non-interest bearing demand deposits, interest bearing demand deposits, savings, money market and certificate of deposits.

Receive News & Ratings for Sterling Financial Co. Daily – Enter your email address below to receive a concise daily summary of the latest news and analysts’ ratings for Sterling Financial Co. and related companies with MarketBeat.com’s FREE daily email newsletter.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

17 + 18 =