Sierra Bancorp (NASDAQ:BSRR – Get Rating) and Columbia Banking System (NASDAQ:COLB – Get Rating) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.
Sierra Bancorp pays an annual dividend of $0.92 per share and has a dividend yield of 4.2%. Columbia Banking System pays an annual dividend of $1.20 per share and has a dividend yield of 4.0%. Sierra Bancorp pays out 35.8% of its earnings in the form of a dividend. Columbia Banking System pays out 42.9% 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. Sierra Bancorp has raised its dividend for 10 consecutive years. Sierra Bancorp is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Earnings and Valuation
This table compares Sierra Bancorp and Columbia Banking System’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Sierra Bancorp||$141.15 million||2.34||$43.01 million||$2.57||8.53|
|Columbia Banking System||$630.16 million||3.78||$202.82 million||$2.80||10.81|
Columbia Banking System has higher revenue and earnings than Sierra Bancorp. Sierra Bancorp is trading at a lower price-to-earnings ratio than Columbia Banking System, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
55.1% of Sierra Bancorp shares are owned by institutional investors. Comparatively, 94.4% of Columbia Banking System shares are owned by institutional investors. 11.6% of Sierra Bancorp shares are owned by company insiders. Comparatively, 0.6% of Columbia Banking System shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This table compares Sierra Bancorp and Columbia Banking System’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Columbia Banking System||31.91%||9.30%||1.14%|
Risk & Volatility
Sierra Bancorp has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500. Comparatively, Columbia Banking System has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500.
This is a breakdown of current ratings and target prices for Sierra Bancorp and Columbia Banking System, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Columbia Banking System||0||3||2||0||2.40|
Sierra Bancorp currently has a consensus target price of $28.00, indicating a potential upside of 27.74%. Columbia Banking System has a consensus target price of $35.60, indicating a potential upside of 17.57%. Given Sierra Bancorp’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Sierra Bancorp is more favorable than Columbia Banking System.
Sierra Bancorp beats Columbia Banking System on 9 of the 17 factors compared between the two stocks.
About Sierra Bancorp (Get Rating)
Sierra Bancorp operates as the bank holding company for Bank of the Sierra that provides retail and commercial banking services to individuals and businesses in California. The company accepts various deposit products, such as checking accounts, savings accounts, money market demand accounts, time deposits, retirement accounts, and sweep accounts. Its loan products include agricultural, commercial, consumer, real estate, construction, and mortgage loans. The company also offers automated teller machines; electronic point-of-sale payment alternatives; online and automated telephone banking services; and remote deposit capture and automated payroll services for business customers. As of December 31, 2021, it operated 35 full-service branches, an online branch, a loan production office, an agricultural credit center, and an SBA center. Sierra Bancorp was founded in 1977 and is headquartered in Porterville, California.
About Columbia Banking System (Get Rating)
Columbia Banking System, Inc. operates as the bank holding company for Columbia State Bank that provides a range of banking services to small and medium-sized businesses, professionals, and individuals in the United States. It offers personal banking products and services, including noninterest and interest-bearing checking, savings, money market, and certificate of deposit accounts; home mortgages for purchases and refinances, home equity loans and lines of credit, and other personal loans; debit and credit cards; and digital banking services. The company also provides business banking products and services, such as checking, savings, interest-bearing money market, and certificate of deposit accounts; agricultural, asset-based, builder, and other commercial real estate loans, as well as loans guaranteed by the small business administration; and professional banking, treasury management, merchant card, and international banking services. In addition, it offers wealth management solutions that include financial planning services, such as asset allocation, net worth analysis, estate planning and preservation, education funding, and wealth transfer; long-term care, and life and disability insurance solutions; individual retirement solutions comprising retirement planning, retirement income strategies, and traditional and Roth individual retirement accounts; and business solutions, which comprise business retirement plans, key person insurance, business succession planning, and deferred compensation plans to individuals, families, and professional businesses. Further, the company provides fiduciary, investment, and administrative trust services, such as personal and special needs trusts, estate settlement, and investment agency and charitable management. It operates a network of 153 branch locations, including 68 in the state of Washington, 59 in Oregon, 15 in Idaho, and 11 in California. The company was founded in 1993 and is headquartered in Tacoma, Washington.
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