Spirit of Texas Bancshares (NASDAQ: ISBC) and Investors Bancorp (NASDAQ:ISBC) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.
This table compares Spirit of Texas Bancshares and Investors Bancorp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Spirit of Texas Bancshares||N/A||N/A||N/A|
Insider and Institutional Ownership
24.7% of Spirit of Texas Bancshares shares are held by institutional investors. Comparatively, 63.5% of Investors Bancorp shares are held by institutional investors. 14.0% of Spirit of Texas Bancshares shares are held by company insiders. Comparatively, 3.5% of Investors Bancorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This is a summary of current ratings and target prices for Spirit of Texas Bancshares and Investors Bancorp, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Spirit of Texas Bancshares||0||1||2||0||2.67|
Spirit of Texas Bancshares presently has a consensus price target of $25.50, indicating a potential upside of 16.92%. Investors Bancorp has a consensus price target of $14.92, indicating a potential upside of 16.17%. Given Spirit of Texas Bancshares’ stronger consensus rating and higher probable upside, analysts clearly believe Spirit of Texas Bancshares is more favorable than Investors Bancorp.
Investors Bancorp pays an annual dividend of $0.36 per share and has a dividend yield of 2.8%. Spirit of Texas Bancshares does not pay a dividend. Investors Bancorp pays out 58.1% of its earnings in the form of a dividend. Investors Bancorp has increased its dividend for 3 consecutive years.
Earnings & Valuation
This table compares Spirit of Texas Bancshares and Investors Bancorp’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Spirit of Texas Bancshares||$56.54 million||3.78||$4.75 million||N/A||N/A|
|Investors Bancorp||$917.32 million||5.03||$126.74 million||$0.62||20.71|
Investors Bancorp has higher revenue and earnings than Spirit of Texas Bancshares.
Investors Bancorp beats Spirit of Texas Bancshares on 10 of the 14 factors compared between the two stocks.
About Spirit of Texas Bancshares
Spirit of Texas Bancshares, Inc. operates as the holding company for Spirit of Texas Bank SSB that provides various commercial and retail banking services to small and medium-sized businesses and individuals. It offers checking accounts, money market accounts, savings accounts, certificates of deposit, and IRA accounts, The company also provides commercial and industrial loans; 1-4 single family residential real estate loans; construction, land, and development loans; commercial real estate loans, such as owner-occupied commercial real estate loans, other commercial real estate loans, and multifamily loans and farmland; consumer loans and leases; and municipal and other loans. In addition, it offers debit and credit cards, safe deposit boxes, wire transfer and treasury management services, and online banking services; and invests in U.S. Treasury bills and notes, as well as in securities of federally sponsored agencies, such as Federal Home Loan Bank bonds. The company operates through a network of 15 full-service branches located in the Houston, Dallas/Fort Worth, and Bryan/College Station metropolitan areas, the United States. Spirit of Texas Bancshares, Inc. was founded in 2008 and is headquartered in Conroe, Texas.
About Investors Bancorp
Investors Bancorp, Inc. operates as the holding company for Investors Bank that provides various banking products and services to individuals and businesses in the United States. Its deposit products include savings, checking, and money market accounts, as well as certificates of deposit. The company's loan portfolio comprises multi-family, commercial real estate, commercial and industrial, and construction loans; consumer and other loans primarily consisting of home equity loans, home equity lines of credit, and cash surrender value lending on life insurance contracts; and one-to four-family residential mortgage loans secured by one-to four-family residential real estate. As of December 31, 2017, it operated through a network of 156 offices in New Jersey and New York. The company was founded in 1926 and is headquartered in Short Hills, New Jersey.
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