Critical Analysis: Western Alliance Bancorporation (NYSE:WAL) vs. BEO Bancorp (OTCMKTS:BEOB)

Western Alliance Bancorporation (NYSE:WAL) and BEO Bancorp (OTCMKTS:BEOB) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.

Dividends

Western Alliance Bancorporation pays an annual dividend of $1.68 per share and has a dividend yield of 2.0%. BEO Bancorp pays an annual dividend of $2.00 per share and has a dividend yield of 1.9%. Western Alliance Bancorporation pays out 20.8% of its earnings in the form of a dividend. Western Alliance Bancorporation has increased its dividend for 5 consecutive years. Western Alliance Bancorporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Western Alliance Bancorporation has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500. Comparatively, BEO Bancorp has a beta of 0.35, meaning that its stock price is 65% less volatile than the S&P 500.

Earnings & Valuation

This table compares Western Alliance Bancorporation and BEO Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Western Alliance Bancorporation	$5.08 billion	1.86	$787.70 million	$8.09	10.64
BEO Bancorp	$57.76 million	2.20	$16.49 million	N/A	N/A

Western Alliance Bancorporation has higher revenue and earnings than BEO Bancorp.

Institutional and Insider Ownership

79.2% of Western Alliance Bancorporation shares are owned by institutional investors. 2.7% of Western Alliance Bancorporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Western Alliance Bancorporation and BEO Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Western Alliance Bancorporation	17.14%	12.93%	1.05%
BEO Bancorp	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and recommmendations for Western Alliance Bancorporation and BEO Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Western Alliance Bancorporation	1	1	13	0	2.80
BEO Bancorp	0	0	0	0	0.00

Western Alliance Bancorporation currently has a consensus target price of $100.53, suggesting a potential upside of 16.84%. Given Western Alliance Bancorporation’s stronger consensus rating and higher probable upside, research analysts plainly believe Western Alliance Bancorporation is more favorable than BEO Bancorp.

Summary

Western Alliance Bancorporation beats BEO Bancorp on 13 of the 15 factors compared between the two stocks.

About Western Alliance Bancorporation

Western Alliance Bancorporation operates as the bank holding company for Western Alliance Bank that provides various banking products and related services primarily in Arizona, California, and Nevada. It operates through Commercial and Consumer Related segments. The company offers deposit products, including checking, savings, and money market accounts, as well as fixed-rate and fixed maturity certificates of deposit accounts; demand deposits; and treasury management and residential mortgage products and services. It also provides commercial and industrial loan products, such as working capital lines of credit, loans to technology companies, inventory and accounts receivable lines, mortgage warehouse lines, equipment loans and leases, and other commercial loans; commercial real estate loans, which are secured by multi-family residential properties, professional offices, industrial facilities, retail centers, hotels, and other commercial properties; construction and land development loans for single family and multi-family residential projects, industrial/warehouse properties, office buildings, retail centers, medical office facilities, and residential lot developments; and consumer loans. In addition, the company provides other financial services, such as internet banking, wire transfers, electronic bill payment and presentment, funds transfer and other digital payment offerings, lock box services, courier, and cash management services. Further, the company holds certain investment securities, municipal and non-profit loans, and leases; invests primarily in low-income housing tax credits and small business investment corporations; and holds certain real estate loans and related securities. Western Alliance Bancorporation was founded in 1994 and is headquartered in Phoenix, Arizona.

About BEO Bancorp

BEO Bancorp operates as the bank holding company for Bank of Eastern Oregon that provides commercial and consumer financing, banking and mortgage lending, and other services in Northeastern Oregon and Southeastern Washington. The company offers checking, money market, time deposits, and savings accounts; and certificates of deposit. It also provides commercial, agricultural, real estate, installment, credit card, mortgage, term, home, construction, farm, and refinancing loans; lines of credit; home enhancement loan programs; Internet banking and bill payment services; business sweep and banking services; and automated teller machines and safe deposit facilities, as well as originates and sells mortgage loans into the secondary market. The company was founded in 1945 and is based in Heppner, Oregon.