Financial Analysis: Avidia Bancorp (AVBC) versus Its Peers

Avidia Bancorp (NYSE:AVBC) is one of 930 publicly-traded companies in the “Banks” industry, but how does it compare to its peers? We will compare Avidia Bancorp to similar businesses based on the strength of its institutional ownership, analyst recommendations, profitability, risk, valuation, dividends and earnings.

Earnings & Valuation

This table compares Avidia Bancorp and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Avidia Bancorp	$147.61 million	-$3.29 million	23.27
Avidia Bancorp Competitors	$9.73 billion	$2.37 billion	26.95

Avidia Bancorp’s peers have higher revenue and earnings than Avidia Bancorp. Avidia Bancorp is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

47.7% of shares of all “Banks” companies are held by institutional investors. 9.8% of shares of all “Banks” companies are held 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 summary of current recommendations and price targets for Avidia Bancorp and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avidia Bancorp	1	0	0	1	2.50
Avidia Bancorp Competitors	7386	29730	26970	1345	2.34

As a group, “Banks” companies have a potential upside of 4.48%. Given Avidia Bancorp’s peers higher possible upside, analysts plainly believe Avidia Bancorp has less favorable growth aspects than its peers.

Dividends

Avidia Bancorp pays an annual dividend of $0.20 per share and has a dividend yield of 0.9%. Avidia Bancorp pays out 21.1% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 9.6% and pay out 32.4% of their earnings in the form of a dividend.

Profitability

This table compares Avidia Bancorp and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Avidia Bancorp	11.51%	4.65%	0.63%
Avidia Bancorp Competitors	14.95%	9.59%	0.92%

Summary

Avidia Bancorp peers beat Avidia Bancorp on 11 of the 14 factors compared.

About Avidia Bancorp

Avidia Bancorp Inc. is a chartered stock savings bank. It operates full-service banking offices principally in western Middlesex County and eastern Worcester County, in Massachusetts. Avidia Bancorp Inc. is based in HUDSON, Mass.