Head-To-Head Comparison: Byline Bancorp (NYSE:BY) vs. M&T Bank (NYSE:MTB)

M&T Bank (NYSE:MTB) and Byline Bancorp (NYSE:BY) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, earnings, valuation, dividends and profitability.

Risk & Volatility

M&T Bank has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500. Comparatively, Byline Bancorp has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500.

Earnings and Valuation

This table compares M&T Bank and Byline Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
M&T Bank	$9.17 billion	3.89	$2.74 billion	$13.51	15.89
Byline Bancorp	$400.23 million	3.45	$107.88 million	$2.75	11.32

M&T Bank has higher revenue and earnings than Byline Bancorp. Byline Bancorp is trading at a lower price-to-earnings ratio than M&T Bank, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

84.7% of M&T Bank shares are owned by institutional investors. Comparatively, 67.7% of Byline Bancorp shares are owned by institutional investors. 0.8% of M&T Bank shares are owned by insiders. Comparatively, 30.1% of Byline Bancorp shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for M&T Bank and Byline Bancorp, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
M&T Bank	1	6	9	0	2.50
Byline Bancorp	0	2	2	0	2.50

M&T Bank presently has a consensus target price of $199.65, indicating a potential downside of 7.03%. Byline Bancorp has a consensus target price of $29.88, indicating a potential downside of 4.06%. Given Byline Bancorp’s higher probable upside, analysts plainly believe Byline Bancorp is more favorable than M&T Bank.

Dividends

M&T Bank pays an annual dividend of $5.40 per share and has a dividend yield of 2.5%. Byline Bancorp pays an annual dividend of $0.36 per share and has a dividend yield of 1.2%. M&T Bank pays out 40.0% of its earnings in the form of a dividend. Byline Bancorp pays out 13.1% 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.

Profitability

This table compares M&T Bank and Byline Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
M&T Bank	17.82%	9.52%	1.15%
Byline Bancorp	19.39%	11.90%	1.32%

Summary

M&T Bank beats Byline Bancorp on 8 of the 15 factors compared between the two stocks.

About M&T Bank

M&T Bank Corporation operates as a bank holding company for Manufacturers and Traders Trust Company and Wilmington Trust, National Association that engages in the provision of retail and commercial banking products and services in the United States. The company operates through three segments: Commercial Bank, Retail Bank, and Institutional Services and Wealth Management. It offers a range of credit products and banking services, such as commercial lending and leasing, letters of credits, commercial real estate loans, and credit facilities secured by various commercial real estate to middle-market and large commercial customers. The company also provides customers deposit products, including demand, savings and time accounts, and other services; automobile and recreational finance loans, home equity loans and lines of credit, credit cards, and other loan products, as well as residential mortgage and real estate loans; business loans, cash management, payroll, and direct deposit services to consumers and small businesses through branch network, telephone banking, internet banking, and automated teller machines. In addition, it offers trustee, agency, investment management, security brokerage, and administrative services; personal trust, planning, fiduciary, asset management, family office, and other services; and investment products, including mutual funds and annuities, and other services for corporations and institutions, investment bankers, corporate tax, finance and legal executives, and other institutional clients. The company was founded in 1856 and is headquartered in Buffalo, New York.

About Byline Bancorp

Byline Bancorp, Inc. operates as the bank holding company for Byline Bank that provides various banking products and services for small and medium sized businesses, commercial real estate and financial sponsors, and consumers in the United States. It offers various retail deposit products, including non-interest-bearing accounts, money market demand accounts, savings accounts, interest-bearing checking accounts, and time deposits; ATM and debit cards; and online, mobile, and text banking services, as well as commercial deposits. The company also provides term loans, revolving lines of credit, and construction financing services; senior secured financing solutions to private equity backed lower middle market companies; small business administration and united states department of agriculture loans; and treasury management products and services. In addition, it offers financing solutions for equipment vendors and their end users; syndication services; and investment, trust, and wealth management services that include fiduciary and executor services, financial planning solutions, investment advisory services, and private banking services for foundations and endowments, and high net worth individuals. The company was formerly known as Metropolitan Bank Group, Inc. and changed its name to Byline Bancorp, Inc. in 2015. Byline Bancorp, Inc. was founded in 1914 and is headquartered in Chicago, Illinois.