Guaranty Bancorp (NASDAQ:GBNK) and Wintrust Financial (NASDAQ:WTFC) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.
Institutional and Insider Ownership
73.5% of Guaranty Bancorp shares are owned by institutional investors. Comparatively, 88.3% of Wintrust Financial shares are owned by institutional investors. 13.3% of Guaranty Bancorp shares are owned by insiders. Comparatively, 1.6% of Wintrust Financial shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Guaranty Bancorp pays an annual dividend of $0.65 per share and has a dividend yield of 2.2%. Wintrust Financial pays an annual dividend of $0.76 per share and has a dividend yield of 0.9%. Guaranty Bancorp pays out 42.5% of its earnings in the form of a dividend. Wintrust Financial pays out 17.3% 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. Guaranty Bancorp has raised its dividend for 4 consecutive years and Wintrust Financial has raised its dividend for 4 consecutive years.
Risk and Volatility
Guaranty Bancorp has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, Wintrust Financial has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500.
This table compares Guaranty Bancorp and Wintrust Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Guaranty Bancorp and Wintrust Financial’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Guaranty Bancorp||$159.75 million||5.53||$38.62 million||$1.53||19.69|
|Wintrust Financial||$1.27 billion||3.85||$257.68 million||$4.40||19.65|
Wintrust Financial has higher revenue and earnings than Guaranty Bancorp. Wintrust Financial is trading at a lower price-to-earnings ratio than Guaranty Bancorp, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and target prices for Guaranty Bancorp and Wintrust Financial, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Guaranty Bancorp presently has a consensus target price of $34.17, suggesting a potential upside of 13.44%. Wintrust Financial has a consensus target price of $94.78, suggesting a potential upside of 9.65%. Given Guaranty Bancorp’s higher probable upside, equities research analysts clearly believe Guaranty Bancorp is more favorable than Wintrust Financial.
Guaranty Bancorp beats Wintrust Financial on 9 of the 16 factors compared between the two stocks.
Guaranty Bancorp Company Profile
Guaranty Bancorp operates as the bank holding company for Guaranty Bank and Trust Company that provides various banking and other financial services to consumers, and small to medium-sized businesses. The company accepts deposit products, such as demand, interest-bearing demand, NOW, money market, IRA, and time deposits, and savings accounts, as well as certificates of deposit. It also offers loan products, including commercial, commercial and residential real estate, construction, and small business administration loans, as well as installment loans to individuals and other consumer loans that include overdraft protection, lines of credit, and other consumer loans. In addition, the company provides wealth management services comprising private banking, investment management, and trust services. As of December 31, 2017, it operated 32 branches located in Colorado's Front Range consisting of the Denver metropolitan area; and an investment management firms. The company was formerly known as Centennial Bank Holdings, Inc. and changed its name to Guaranty Bancorp in 2008. Guaranty Bancorp was incorporated in 2004 and is headquartered in Denver, Colorado.
Wintrust Financial Company Profile
Wintrust Financial Corporation operates as a financial holding company in the Chicago metropolitan area, southern Wisconsin, and northwest Indiana. It operates in three segments: Community Banking, Specialty Finance, and Wealth Management. The Community Banking segment offers non-interest bearing deposits, non-brokered interest-bearing transaction accounts, and savings and domestic time deposits; home equity, consumer, and real estate loans; safe deposit facilities; and automatic teller machine (ATM), Internet banking, and other services. It also engages in the origination and purchase of residential mortgages for sale into the secondary market; and provision of lending, deposits, and cash management services to condominium, homeowner, and community associations, as well as asset-based lending for middle-market companies. In addition, this segment offers loan and deposit services to mortgage brokerage companies; lending to restaurant franchisees; direct leasing; small business administration loans; commercial mortgages and construction loans; and financial solutions. It provides personal and commercial banking services primarily to individuals, small to mid-sized businesses, local governmental units, and institutional customers. The Specialty Finance segment offers commercial and life insurance premiums for businesses and individuals; accounts receivable financing, value-added, and out-sourced administrative services; and other specialty finance services, as well as data processing of payrolls, billing, and cash management services to temporary staffing service clients. The Wealth Management segment provides trust and investment, asset management, securities brokerage, and retirement plan services. As of December 31, 2017, the company had approximately 157 banking facilities and 212 ATMs. Wintrust Financial Corporation was founded in 1992 and is headquartered in Rosemont, Illinois.
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