EWBC vs. ALLY, PB, SSB, FITB, MTB, FCNCA, HBAN, RF, KEY, and FHN
Should you be buying East West Bancorp stock or one of its competitors? The main competitors of East West Bancorp include Ally Financial (ALLY), Prosperity Bancshares (PB), SouthState (SSB), Fifth Third Bancorp (FITB), M&T Bank (MTB), First Citizens BancShares (FCNCA), Huntington Bancshares (HBAN), Regions Financial (RF), KeyCorp (KEY), and First Horizon (FHN). These companies are all part of the "finance" sector.
Ally Financial (NYSE:ALLY) and East West Bancorp (NASDAQ:EWBC) are both large-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their community ranking, dividends, profitability, media sentiment, institutional ownership, risk, analyst recommendations, earnings and valuation.
Ally Financial pays an annual dividend of $1.20 per share and has a dividend yield of 3.1%. East West Bancorp pays an annual dividend of $2.20 per share and has a dividend yield of 3.0%. Ally Financial pays out 49.0% of its earnings in the form of a dividend. East West Bancorp pays out 27.7% 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. East West Bancorp has increased its dividend for 7 consecutive years.
Ally Financial currently has a consensus price target of $38.47, indicating a potential downside of 1.26%. East West Bancorp has a consensus price target of $84.08, indicating a potential upside of 13.33%. Given Ally Financial's stronger consensus rating and higher probable upside, analysts plainly believe East West Bancorp is more favorable than Ally Financial.
Ally Financial received 216 more outperform votes than East West Bancorp when rated by MarketBeat users. However, 64.56% of users gave East West Bancorp an outperform vote while only 64.43% of users gave Ally Financial an outperform vote.
Ally Financial has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500. Comparatively, East West Bancorp has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500.
In the previous week, East West Bancorp had 1 more articles in the media than Ally Financial. MarketBeat recorded 12 mentions for East West Bancorp and 11 mentions for Ally Financial. Ally Financial's average media sentiment score of 1.17 beat East West Bancorp's score of 0.54 indicating that East West Bancorp is being referred to more favorably in the news media.
East West Bancorp has a net margin of 26.78% compared to East West Bancorp's net margin of 10.59%. Ally Financial's return on equity of 17.43% beat East West Bancorp's return on equity.
88.8% of Ally Financial shares are held by institutional investors. Comparatively, 89.5% of East West Bancorp shares are held by institutional investors. 0.7% of Ally Financial shares are held by company insiders. Comparatively, 1.0% of East West Bancorp shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
East West Bancorp has lower revenue, but higher earnings than Ally Financial. East West Bancorp is trading at a lower price-to-earnings ratio than Ally Financial, indicating that it is currently the more affordable of the two stocks.
Summary
East West Bancorp beats Ally Financial on 16 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding EWBC and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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