SVB Financial Group (SIVB) and Its Peers Critical Contrast

SVB Financial Group (NASDAQ: SIVB) is one of 306 publicly-traded companies in the “Banks” industry, but how does it contrast to its peers? We will compare SVB Financial Group to related companies based on the strength of its valuation, dividends, analyst recommendations, risk, earnings, institutional ownership and profitability.

Analyst Ratings

This is a breakdown of recent recommendations for SVB Financial Group and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SVB Financial Group 0 2 10 0 2.83
SVB Financial Group Competitors 2201 8096 7969 369 2.35

SVB Financial Group presently has a consensus price target of $226.08, indicating a potential downside of 10.18%. As a group, “Banks” companies have a potential downside of 9.76%. Given SVB Financial Group’s peers higher probable upside, analysts clearly believe SVB Financial Group has less favorable growth aspects than its peers.

Profitability

This table compares SVB Financial Group and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SVB Financial Group 25.07% 11.88% 0.99%
SVB Financial Group Competitors 18.42% 8.27% 0.94%

Valuation and Earnings

This table compares SVB Financial Group and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
SVB Financial Group $1.65 billion $382.68 million 28.25
SVB Financial Group Competitors $5.55 billion $833.70 million 382.80

SVB Financial Group’s peers have higher revenue and earnings than SVB Financial Group. SVB Financial Group is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

SVB Financial Group has a beta of 1.62, meaning that its stock price is 62% more volatile than the S&P 500. Comparatively, SVB Financial Group’s peers have a beta of 0.79, meaning that their average stock price is 21% less volatile than the S&P 500.

Insider & Institutional Ownership

91.7% of SVB Financial Group shares are held by institutional investors. Comparatively, 52.0% of shares of all “Banks” companies are held by institutional investors. 0.7% of SVB Financial Group shares are held by company insiders. Comparatively, 10.4% of shares of all “Banks” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

SVB Financial Group beats its peers on 7 of the 13 factors compared.

SVB Financial Group Company Profile

SVB Financial Group is a financial services company, as well as a bank holding and a financial holding company. The Company’s segments include Global Commercial Bank, SVB Private Bank and SVB Capital. The Global Commercial Bank segment consists of the operations of its Commercial Bank, and of SVB Wine, SVB Analytics and its Debt Fund Investments. SVB Private Bank is the private banking division of the Bank, which provides a range of personal financial solutions for consumers. SVB Capital is the venture capital investment arm of SVB Financial Group, which focuses primarily on funds management. The Company, through its subsidiaries and divisions, offers a range of banking and financial products and services to clients across the United States. It offers services in the technology, life science/healthcare, private equity/venture capital and wine industries. The Bank and its subsidiaries, also offer asset management, private wealth management, brokerage and other investment services.

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