Analyzing Northpointe Bancshares (NPB) and Its Competitors

Northpointe Bancshares (NYSE:NPB) is one of 919 public companies in the “Banks” industry, but how does it compare to its competitors? We will compare Northpointe Bancshares to similar businesses based on the strength of its valuation, risk, analyst recommendations, dividends, profitability, earnings and institutional ownership.

Institutional and Insider Ownership

47.8% of shares of all “Banks” companies are owned by institutional investors. 18.3% of Northpointe Bancshares shares are owned by insiders. Comparatively, 9.7% of shares of all “Banks” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Northpointe Bancshares and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Northpointe Bancshares	16.27%	13.88%	1.12%
Northpointe Bancshares Competitors	15.64%	9.43%	0.93%

Risk and Volatility

Northpointe Bancshares has a beta of 0.09, meaning that its share price is 91% less volatile than the S&P 500. Comparatively, Northpointe Bancshares’ competitors have a beta of 0.61, meaning that their average share price is 39% less volatile than the S&P 500.

Dividends

Northpointe Bancshares pays an annual dividend of $0.12 per share and has a dividend yield of 0.8%. Northpointe Bancshares pays out 5.6% of its earnings in the form of a dividend. As a group, “Banks” companies pay a dividend yield of 8.9% and pay out 28.9% of their earnings in the form of a dividend.

Valuation & Earnings

This table compares Northpointe Bancshares and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Northpointe Bancshares	$471.18 million	$83.41 million	7.41
Northpointe Bancshares Competitors	$37.86 billion	$2.42 billion	21.35

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Northpointe Bancshares and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northpointe Bancshares	2	1	2	0	2.00
Northpointe Bancshares Competitors	7492	30250	27848	1488	2.35

Northpointe Bancshares presently has a consensus price target of $20.25, indicating a potential upside of 28.33%. As a group, “Banks” companies have a potential upside of 14.20%. Given Northpointe Bancshares’ higher probable upside, research analysts clearly believe Northpointe Bancshares is more favorable than its competitors.

Summary

Northpointe Bancshares competitors beat Northpointe Bancshares on 9 of the 15 factors compared.

Northpointe Bancshares Company Profile

Northpointe Bancshares, Inc. is a bank holding company headquartered in Grand Rapids, Michigan, and the parent of Northpointe Bank. The company provides banking and mortgage services to consumers and businesses. Its offerings include residential mortgage lending, deposit accounts and commercial banking services. Northpointe Bank also works with mortgage-industry partners through lending and related financial services. Based in Michigan, the company serves customers and business partners across the United States.