Comparing Synovus Financial (NYSE:SNV) and Westamerica Bancorporation (NASDAQ:WABC)

Synovus Financial (NYSE:SNVGet Free Report) and Westamerica Bancorporation (NASDAQ:WABCGet Free Report) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, dividends, analyst recommendations, risk, institutional ownership, earnings and valuation.

Valuation and Earnings

This table compares Synovus Financial and Westamerica Bancorporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Synovus Financial $3.45 billion 1.70 $543.71 million $2.92 13.74
Westamerica Bancorporation $327.54 million 4.10 $161.77 million $5.92 8.51

Synovus Financial has higher revenue and earnings than Westamerica Bancorporation. Westamerica Bancorporation is trading at a lower price-to-earnings ratio than Synovus Financial, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Synovus Financial and Westamerica Bancorporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Synovus Financial 13.29% 12.93% 0.94%
Westamerica Bancorporation 48.35% 21.99% 2.42%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Synovus Financial and Westamerica Bancorporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Synovus Financial 0 7 9 0 2.56
Westamerica Bancorporation 0 2 0 0 2.00

Synovus Financial presently has a consensus target price of $41.50, indicating a potential upside of 3.47%. Westamerica Bancorporation has a consensus target price of $53.50, indicating a potential upside of 6.21%. Given Westamerica Bancorporation’s higher probable upside, analysts plainly believe Westamerica Bancorporation is more favorable than Synovus Financial.

Insider and Institutional Ownership

83.9% of Synovus Financial shares are held by institutional investors. Comparatively, 81.9% of Westamerica Bancorporation shares are held by institutional investors. 0.8% of Synovus Financial shares are held by company insiders. Comparatively, 4.4% of Westamerica Bancorporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Synovus Financial pays an annual dividend of $1.52 per share and has a dividend yield of 3.8%. Westamerica Bancorporation pays an annual dividend of $1.76 per share and has a dividend yield of 3.5%. Synovus Financial pays out 52.1% of its earnings in the form of a dividend. Westamerica Bancorporation pays out 29.7% 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. Synovus Financial has increased its dividend for 2 consecutive years and Westamerica Bancorporation has increased its dividend for 1 consecutive years. Synovus Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Synovus Financial has a beta of 1.41, suggesting that its stock price is 41% more volatile than the S&P 500. Comparatively, Westamerica Bancorporation has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500.

Summary

Synovus Financial beats Westamerica Bancorporation on 9 of the 17 factors compared between the two stocks.

About Synovus Financial

(Get Free Report)

Synovus Financial Corp. operates as the bank holding company for Synovus Bank that provides commercial and consumer banking products and services. It operates through four segments: Community Banking, Wholesale Banking, Consumer Banking, and Financial Management Services. The company's commercial banking services include treasury and asset management, capital market, and institutional trust services, as well as commercial, financial, and real estate lending services. Its consumer banking services comprise accepting customary types of demand and savings deposits accounts; mortgage, installment, and other consumer loans; investment and brokerage services; safe deposit services; automated banking services; automated fund transfers; internet-based banking services; and bank credit and debit card services, including Visa and MasterCard services. The company also offers various other financial services, including portfolio management for fixed-income securities, investment banking, execution of securities transactions as a broker/dealer, trust management, and financial planning services, as well as provides individual investment advice on equity and other securities. The company was founded in 1888 and is headquartered in Columbus, Georgia.

About Westamerica Bancorporation

(Get Free Report)

Westamerica Bancorporation operates as a bank holding company for the Westamerica Bank that provides various banking products and services to individual and commercial customers. The company accepts various deposit products, including retail savings and checking accounts, as well as certificates of deposit. Its loan portfolio includes commercial, commercial and residential real estate, real estate construction, and consumer installment loans, as well as indirect automobile loans. The company was formerly known as Independent Bankshares Corporation and changed its name to Westamerica Bancorporation in 1983. The company was founded in 1884 and is headquartered in San Rafael, California.

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