Critical Contrast: SR Bancorp (SRBK) and The Competition

SR Bancorp (NASDAQ:SRBK) is one of 40 publicly-traded companies in the “Savings institutions, except federal” industry, but how does it weigh in compared to its peers? We will compare SR Bancorp to similar companies based on the strength of its valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Valuation & Earnings

This table compares SR Bancorp and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
SR Bancorp	$26.88 million	-$10.86 million	-1.11
SR Bancorp Competitors	$173.48 million	$15.31 million	9.16

SR Bancorp’s peers have higher revenue and earnings than SR Bancorp. SR Bancorp 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.

Analyst Ratings

This is a breakdown of current recommendations for SR Bancorp and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SR Bancorp	0	0	0	0	N/A
SR Bancorp Competitors	106	578	363	5	2.25

As a group, “Savings institutions, except federal” companies have a potential downside of 0.14%. Given SR Bancorp’s peers higher probable upside, analysts clearly believe SR Bancorp has less favorable growth aspects than its peers.

Profitability

This table compares SR Bancorp and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SR Bancorp	-28.30%	-5.52%	-1.01%
SR Bancorp Competitors	8.23%	5.24%	0.57%

Insider and Institutional Ownership

24.7% of SR Bancorp shares are owned by institutional investors. Comparatively, 44.6% of shares of all “Savings institutions, except federal” companies are owned by institutional investors. 8.6% of shares of all “Savings institutions, except federal” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

SR Bancorp peers beat SR Bancorp on 9 of the 9 factors compared.

About SR Bancorp

SR Bancorp, Inc. operates as the holding company for Somerset Regal Bank that provides customary retail and commercial banking services to individuals, businesses, and local municipalities in the communities of Somerset, Middlesex, Hunterdon, and Essex counties in New Jersey. It offers deposit instruments, including noninterest-bearing demand deposits, interest-bearing demand accounts, savings accounts, money market accounts, and certificates of deposit. The company also provides loans comprising one- to four family-residential mortgage loans, home equity loans and lines of credit, unsecured personal loans, and rehabilitation loans; and bill payment services. In addition, it is involved in the investment activities. The company was founded in 1887 and is headquartered in Bound Brook, New Jersey.