Banner (NASDAQ:BANR – Get Free Report) and Five Star Bancorp (NASDAQ:FSBC – Get Free Report) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.
Risk & Volatility
Banner has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500. Comparatively, Five Star Bancorp has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500.
Profitability
This table compares Banner and Five Star Bancorp’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Banner | 22.81% | 10.44% | 1.25% |
| Five Star Bancorp | 26.58% | 16.89% | 1.53% |
Insider and Institutional Ownership
87.3% of Banner shares are owned by institutional investors. Comparatively, 46.9% of Five Star Bancorp shares are owned by institutional investors. 1.4% of Banner shares are owned by company insiders. Comparatively, 21.8% of Five Star Bancorp shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Banner and Five Star Bancorp”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Banner | $679.17 million | 3.60 | $195.38 million | $5.88 | 12.22 |
| Five Star Bancorp | $176.60 million | 6.29 | $61.61 million | $3.53 | 12.83 |
Banner has higher revenue and earnings than Five Star Bancorp. Banner is trading at a lower price-to-earnings ratio than Five Star Bancorp, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Banner and Five Star Bancorp, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Banner | 0 | 4 | 2 | 0 | 2.33 |
| Five Star Bancorp | 0 | 3 | 2 | 0 | 2.40 |
Banner presently has a consensus price target of $75.75, suggesting a potential upside of 5.38%. Five Star Bancorp has a consensus price target of $49.00, suggesting a potential upside of 8.19%. Given Five Star Bancorp’s stronger consensus rating and higher probable upside, analysts plainly believe Five Star Bancorp is more favorable than Banner.
Dividends
Banner pays an annual dividend of $2.08 per share and has a dividend yield of 2.9%. Five Star Bancorp pays an annual dividend of $1.00 per share and has a dividend yield of 2.2%. Banner pays out 35.4% of its earnings in the form of a dividend. Five Star Bancorp pays out 28.3% 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.
Summary
Five Star Bancorp beats Banner on 9 of the 15 factors compared between the two stocks.
About Banner
Banner Corporation operates as the bank holding company for Banner Bank that engages in the provision of commercial banking and financial products and services to individuals, businesses, and public sector entities in the United States. It accepts various deposit instruments, including interest-bearing and non-interest-bearing checking accounts, money market deposit accounts, regular savings accounts, and certificates of deposit, as well as treasury management services and retirement savings plans. The company also provides commercial real estate loans, including owner-occupied, investment properties, and multifamily residential real estate loans; construction, land, and land development loans; one- to four-family residential real estate lending; commercial business loans; agricultural loans; consumer and other loans, such as home equity lines of credit, automobile, and boat and recreational vehicle loans, as well as loans secured by deposit accounts; and small business administration loans. In addition, it provides electronic and digital banking services comprising debit cards and ATMs, internet banking, remote deposit, and mobile banking services. The company was founded in 1890 and is based in Walla Walla, Washington.
About Five Star Bancorp
Five Star Bancorp operates as the bank holding company for Five Star Bank that provides a range of banking products and services to small and medium-sized businesses, professionals, and individuals in Northern California. It accepts various deposits, such as money market accounts, noninterest-bearing and interest checking accounts, savings accounts, term certificate accounts, and time deposits. The company also offers loan products, including commercial and residential real estate loans; commercial loans; commercial land loans; farmland loans; commercial and residential construction loans; and consumer and other loans, as well as operating lines of credit. In addition, it provides debit cards; and remote deposit capture, online and mobile banking, and direct deposit services. Five Star Bancorp was founded in 1999 and is headquartered in Rancho Cordova, California.
Receive News & Ratings for Banner Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Banner and related companies with MarketBeat.com's FREE daily email newsletter.
