Simmons First National (NASDAQ:SFNC) vs. Republic Bancorp (NASDAQ:RBCAA) Head-To-Head Review

Republic Bancorp (NASDAQ:RBCAA) and Simmons First National (NASDAQ:SFNC) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, risk, valuation, earnings, analyst recommendations, profitability and dividends.

Valuation & Earnings

This table compares Republic Bancorp and Simmons First National”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Republic Bancorp	$406.38 million	3.32	$101.37 million	$6.53	10.57
Simmons First National	$50.15 million	53.52	$152.69 million	($2.93)	-6.33

Simmons First National has lower revenue, but higher earnings than Republic Bancorp. Simmons First National is trading at a lower price-to-earnings ratio than Republic Bancorp, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

24.4% of Republic Bancorp shares are owned by institutional investors. Comparatively, 27.6% of Simmons First National shares are owned by institutional investors. 56.4% of Republic Bancorp shares are owned by insiders. Comparatively, 1.4% of Simmons First National shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Republic Bancorp pays an annual dividend of $1.80 per share and has a dividend yield of 2.6%. Simmons First National pays an annual dividend of $0.85 per share and has a dividend yield of 4.6%. Republic Bancorp pays out 27.6% of its earnings in the form of a dividend. Simmons First National pays out -29.0% 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. Republic Bancorp has increased its dividend for 27 consecutive years and Simmons First National has increased its dividend for 14 consecutive years. Simmons First National is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of current ratings and target prices for Republic Bancorp and Simmons First National, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Republic Bancorp	0	2	1	0	2.33
Simmons First National	1	3	2	2	2.63

Republic Bancorp currently has a consensus price target of $69.00, indicating a potential downside of 0.06%. Simmons First National has a consensus price target of $22.33, indicating a potential upside of 20.43%. Given Simmons First National’s stronger consensus rating and higher probable upside, analysts clearly believe Simmons First National is more favorable than Republic Bancorp.

Volatility & Risk

Republic Bancorp has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500. Comparatively, Simmons First National has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500.

Profitability

This table compares Republic Bancorp and Simmons First National’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Republic Bancorp	24.53%	12.40%	1.83%
Simmons First National	-29.70%	5.84%	0.78%

Summary

Simmons First National beats Republic Bancorp on 10 of the 18 factors compared between the two stocks.

About Republic Bancorp

Republic Bancorp, Inc. operates as a bank holding company for Republic Bank & Trust Company that provides various banking products and services in the United States. It operates in six segments: Traditional Banking, Warehouse, Mortgage Banking, Tax Refund Solutions, Republic Payment Solutions, and Republic Credit Solutions. The company offers demand, money market accounts, savings, individual retirement accounts, time, brokered, and other certificates of deposit; and retail and commercial mortgage, construction and land development, consumer, aircraft, and marine loans. It also provides credit cards; title insurance and other financial products and services; and private banking, lockbox processing, remote deposit capture, business online banking, account reconciliation, automated clearing house processing, and internet and mobile banking services. In addition, it offers short-term and revolving credit facilities to mortgage bankers through mortgage warehouse lines of credit; mortgage banking; tax refund solutions, which facilitate the receipt and payment of federal and state tax refund products through third-party tax preparers and tax-preparation software providers; payments-related products and services to consumers through third party service providers; and consumer credit products. The company offers its services through full-services banking centers in Kentucky, Indiana, Florida, Ohio, and Tennessee. Republic Bancorp, Inc. was incorporated in 1974 and is headquartered in Louisville, Kentucky.

About Simmons First National

Simmons First National Corporation operates as the holding company for Simmons Bank that provides banking and other financial products and services to individuals and businesses. The company offers checking, savings, and time deposits; consumer, real estate, and commercial loans; agricultural finance, equipment, and small business administration lending; trust and fiduciary services; credit cards; investment management products; treasury management; insurance products; and securities and investment services. It also provides ATM services; Internet and mobile banking platforms; overdraft facilities; and safe deposit boxes. The company was founded in 1903 and is headquartered in Pine Bluff, Arkansas.