WesBanco (NASDAQ:WSBC – Get Free Report) and Popular (NASDAQ:BPOP – Get Free Report) are both mid-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.
Volatility & Risk
WesBanco has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500. Comparatively, Popular has a beta of 0.59, indicating that its stock price is 41% less volatile than the S&P 500.
Dividends
WesBanco pays an annual dividend of $1.52 per share and has a dividend yield of 4.2%. Popular pays an annual dividend of $3.00 per share and has a dividend yield of 2.1%. WesBanco pays out 73.4% of its earnings in the form of a dividend. Popular pays out 24.4% 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. WesBanco has raised its dividend for 14 consecutive years and Popular has raised its dividend for 6 consecutive years. WesBanco is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| WesBanco | $1.44 billion | 2.41 | $223.10 million | $2.07 | 17.42 |
| Popular | $4.44 billion | 2.12 | $833.16 million | $12.32 | 11.75 |
Popular has higher revenue and earnings than WesBanco. Popular is trading at a lower price-to-earnings ratio than WesBanco, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares WesBanco and Popular’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| WesBanco | 15.51% | 8.81% | 1.19% |
| Popular | 18.75% | 13.70% | 1.10% |
Institutional & Insider Ownership
61.4% of WesBanco shares are held by institutional investors. Comparatively, 87.3% of Popular shares are held by institutional investors. 2.1% of WesBanco shares are held by company insiders. Comparatively, 2.1% of Popular 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.
Analyst Recommendations
This is a summary of current recommendations and price targets for WesBanco and Popular, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| WesBanco | 0 | 1 | 3 | 2 | 3.17 |
| Popular | 0 | 1 | 11 | 0 | 2.92 |
WesBanco currently has a consensus price target of $40.60, indicating a potential upside of 12.59%. Popular has a consensus price target of $161.18, indicating a potential upside of 11.30%. Given WesBanco’s stronger consensus rating and higher possible upside, equities research analysts clearly believe WesBanco is more favorable than Popular.
About WesBanco
WesBanco, Inc. operates as the bank holding company for WesBanco Bank, Inc. that provides retail banking, corporate banking, personal and corporate trust, brokerage, mortgage banking, and insurance services to individuals and businesses in the United States. The company operates through two segments, Community Banking, and Trust and Investment Services. It offers commercial demand, individual demand, and time deposit accounts; commercial, mortgage and individual installment loans; retail loans, such as residential real estate mortgage loans, home equity lines of credit, and loans for other consumer purposes; installment loans to finance the purchase of automobiles, trucks, motorcycles, boats, and other recreational vehicles, as well as home equity installment loans, unsecured home improvement loans, and revolving lines of credit; and various non-traditional offerings, such as insurance and securities brokerage services. The company also provides trust services; and various alternative investment products, including mutual funds and annuities. In addition, it acts as an agency that specializes in property, casualty, life, and title insurance, as well as benefit plan sales and administration to personal and commercial clients; provides broker dealer and discount brokerage services; holds investment securities and loans; and holds and leases commercial real estate properties, as well as acts as an investment adviser to a family of mutual funds. WesBanco, Inc. was founded in 1870 and is headquartered in Wheeling, West Virginia.
About Popular
Popular, Inc., through its subsidiaries, provides various retail, mortgage, and commercial banking products and services in Puerto Rico, the United States, and the British Virgin Islands. The company provides savings, NOW, money market, and other interest-bearing demand accounts; non-interest bearing demand deposits; and certificates of deposit. It also offers commercial and industrial, commercial multi-family, commercial real estate, and residential mortgage loans; consumer loans, including personal loans, credit cards, automobile loans, home equity lines of credit, and other loans to individual borrowers; construction loans; and lease financing comprising automobile loans/leases. In addition, the company provides investment banking, auto and equipment leasing and financing, broker-dealer, and insurance services; debit cards; and online banking services. Popular, Inc. was founded in 1893 and is headquartered in Hato Rey, Puerto Rico.
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