Glacier Bancorp (NASDAQ:GBCI) and Live Oak Bancshares (NASDAQ:LOB) Critical Contrast

Glacier Bancorp (NASDAQ:GBCI) and Live Oak Bancshares (NASDAQ:LOB) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, dividends, risk, analyst recommendations and earnings.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Glacier Bancorp and Live Oak Bancshares, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Glacier Bancorp 0 1 2 0 2.67
Live Oak Bancshares 0 0 1 0 3.00

Glacier Bancorp presently has a consensus price target of $39.00, suggesting a potential upside of 21.46%. Live Oak Bancshares has a consensus price target of $22.00, suggesting a potential upside of 110.73%. Given Live Oak Bancshares’ stronger consensus rating and higher possible upside, analysts plainly believe Live Oak Bancshares is more favorable than Glacier Bancorp.

Dividends

Glacier Bancorp pays an annual dividend of $1.16 per share and has a dividend yield of 3.6%. Live Oak Bancshares pays an annual dividend of $0.12 per share and has a dividend yield of 1.1%. Glacier Bancorp pays out 48.7% of its earnings in the form of a dividend. Live Oak Bancshares pays out 27.3% 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. Glacier Bancorp has increased its dividend for 8 consecutive years and Live Oak Bancshares has increased its dividend for 3 consecutive years. Glacier Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Glacier Bancorp and Live Oak Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Glacier Bancorp 31.10% 12.30% 1.69%
Live Oak Bancshares 6.10% 3.66% 0.43%

Earnings & Valuation

This table compares Glacier Bancorp and Live Oak Bancshares’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Glacier Bancorp $676.95 million 4.38 $210.54 million $2.38 13.49
Live Oak Bancshares $295.86 million 1.42 $18.03 million $0.44 23.73

Glacier Bancorp has higher revenue and earnings than Live Oak Bancshares. Glacier Bancorp is trading at a lower price-to-earnings ratio than Live Oak Bancshares, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

76.0% of Glacier Bancorp shares are held by institutional investors. Comparatively, 45.4% of Live Oak Bancshares shares are held by institutional investors. 0.5% of Glacier Bancorp shares are held by company insiders. Comparatively, 25.9% of Live Oak Bancshares shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Glacier Bancorp has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500. Comparatively, Live Oak Bancshares has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500.

Summary

Glacier Bancorp beats Live Oak Bancshares on 12 of the 17 factors compared between the two stocks.

About Glacier Bancorp

Glacier Bancorp, Inc. operates as the holding company for Glacier Bank that provides commercial banking services to individuals, small to medium-sized businesses, community organizations, and public entities in the United States. It offers non-interest bearing deposit and interest bearing deposit accounts, such as negotiable order of withdrawal and demand deposit accounts, savings accounts, money market deposit accounts, fixed rate certificates of deposits, negotiated-rate jumbo certificates, and individual retirement accounts. The company also provides construction and permanent loans on residential real estate; consumer land or lot acquisition loans; unimproved land and land development loans; and residential builder guidance lines comprising pre-sold and spec-home construction, and lot acquisition loans. In addition, it offers commercial real estate loans to purchase, construct, and finance commercial real estate properties; consumer loans secured by real estate, automobiles, or other assets; second mortgage loans; municipal loans; home equity loans consisting of 1-4 family junior lien mortgages, and first and junior lien lines of credit secured by residential real estate; and agriculture loans. Further, the company provides mortgage origination services. It has 167 locations, including 149 branches and 18 loan or administration offices in 63 counties within 7 states comprising Montana, Idaho, Utah, Washington, Wyoming, Colorado, and Arizona. The company was incorporated in 2004 and is headquartered in Kalispell, Montana.

About Live Oak Bancshares

Live Oak Bancshares, Inc. operates as the bank holding company for Live Oak Banking Company that provides various commercial banking products and services to individuals, small businesses, and professionals in North Carolina, the United States. The company accepts various deposit products, including noninterest-bearing demand, interest-bearing checking, money market, savings, and time deposits. It also offers commercial and industrial loans; construction and development loans; owner occupied and non-owner occupied collateral commercial real estate loans; and commercial land loans. In addition, the company provides settlement, accounting, and securitization services for government guaranteed loans; and wealth and investment management services to high-net-worth individuals and families. Live Oak Bancshares, Inc. was founded in 2008 and is headquartered in Wilmington, North Carolina.

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