Hancock Whitney (NASDAQ:HWC) vs. Byline Bancorp (NYSE:BY) Financial Investigation


Hancock Whitney (NASDAQ:HWCGet a rating) and Byline Bancorp (NYSE: BYGet a rating) are both finance companies, but which company is superior? We’ll compare the two companies based on valuation strength, profitability, dividends, risk, institutional ownership, earnings, and analyst recommendations.

Benefits and evaluation

This table compares revenue, earnings per share and valuation of Hancock Whitney and Byline Bancorp.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Hancock Whitney $1.35 billion 2.98 $463.21 million $5.41 8.57
Parline Bancorp $323.18 million 2.72 $92.79 million $2.42 9.60

Hancock Whitney has higher revenue and profit than Byline Bancorp. Hancock Whitney is trading at a lower price-to-earnings ratio than Byline Bancorp, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares the net margins, return on equity and return on assets of Hancock Whitney and Byline Bancorp.

Net margins Return on equity return on assets
Hancock Whitney 36.08% 14.18% 1.42%
Parline Bancorp 28.40% 12.96% 1.57%

Risk and Volatility

Hancock Whitney has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500. In comparison, Byline Bancorp has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500.

Insider and Institutional Ownership

78.4% of Hancock Whitney shares are held by institutional investors. By comparison, 44.2% of Byline Bancorp’s shares are held by institutional investors. 1.0% of Hancock Whitney shares are held by insiders of the company. By comparison, 35.0% of Byline Bancorp’s shares are held by company insiders. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a company will outperform the market over the long term.

Dividends

Hancock Whitney pays an annual dividend of $1.08 per share and has a dividend yield of 2.3%. Byline Bancorp pays an annual dividend of $0.36 per share and has a dividend yield of 1.6%. Hancock Whitney pays 20.0% of its earnings as a dividend. Byline Bancorp pays 14.9% of its profits as a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings over the next few years. Byline Bancorp has increased its dividend for 1 consecutive years.

Analyst Notes

This is a breakdown of the current ratings and target prices for Hancock Whitney and Byline Bancorp, as reported by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Hancock Whitney 0 1 2 1 3.00
Parline Bancorp 0 1 1 0 2.50

Hancock Whitney currently has a consensus price target of $60.75, suggesting a potential upside of 30.95%. Byline Bancorp has a consensus price target of $27.50, suggesting a potential upside of 18.43%. Given Hancock Whitney’s stronger consensus rating and higher likely upside, research analysts clearly believe that Hancock Whitney is more favorable than Byline Bancorp.

Summary

Hancock Whitney beats Byline Bancorp on 13 of the 18 factors compared between the two stocks.

About Hancock Whitney (Get a rating)

Hancock Whitney Corporation operates as a banking holding company for Hancock Whitney Bank which provides a range of banking products and services to commercial, small business and retail customers. It accepts various deposit products, such as non-interest bearing demand deposits, interest bearing transaction accounts, savings accounts, money market deposit accounts and term deposit accounts. The Company’s loan products include commercial and industrial loans; commercial real estate loans; construction and land development loans; residential mortgage loans, including fixed and adjustable rate loans; consumer loans including second mortgage real estate loans, home equity lines of credit and loans for non-residential consumer purposes; revolving credit facilities; and letters of credit and financial guarantees. It also offers investment brokerage and cash management services, as well as annuity and life insurance products; and trust and investment management services to pension plans, businesses and individuals, as well as seized assets. The company operates 177 full-service banking and financial services offices and 240 ATMs, primarily in the Southern Gulf Corridor, including southern and central Mississippi; southern and central Alabama; southern, central, and northwest Louisiana; the North, Central and Panhandle regions of Florida; and parts of East Texas including Houston, Beaumont, Dallas and San Antonio. It also operates a loan origination office in Nashville, Tennessee; and a trust and asset management office in Marshall, Texas. The company was formerly known as Hancock Holding Company and changed its name to Hancock Whitney Corporation in May 2018. Hancock Whitney Corporation was founded in 1883 and is headquartered in Gulfport, Mississippi.

About Byline Bancorp (Get a rating)

Byline Bancorp, Inc. operates as a banking holding company for Byline Bank which provides various banking products and services to small and medium-sized businesses, commercial and financial real estate sponsors, and consumers in the United States. It offers various retail deposit products, including non-interest bearing accounts, money market demand accounts, savings accounts, interest bearing checking accounts and term deposits; ATM cards and debit cards; and online, mobile and text banking, as well as commercial deposits. The company also offers term loans, revolving lines of credit and construction finance services; top-tier, secure financing solutions for lower-middle-market companies backed by private equity; the United States Department of Agriculture Small Business Administration and Loans; and cash management products and services. In addition, it offers financing solutions for equipment manufacturers and their end users; and investment, trust and wealth management services which include trustee and executor services, financial planning solutions, investment advisory services and private banking services for foundations and endowments, and wealthy individuals. It operates through 43 branches in the Chicago metropolitan area and one branch in Brookfield, Wisconsin. The company was formerly known as Metropolitan Bank Group, Inc. and changed its name to Byline Bancorp, Inc. in 2015. Byline Bancorp, Inc. was founded in 1914 and is headquartered in Chicago, Illinois.



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