Live Oak Bancshares (NASDAQ:LOB) & State Street (NYSE:STT) Head to Head Analysis

State Street (NYSE:STTGet Free Report) and Live Oak Bancshares (NASDAQ:LOBGet Free Report) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, institutional ownership, analyst recommendations, risk and profitability.

Volatility & Risk

State Street has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500. Comparatively, Live Oak Bancshares has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500.

Insider & Institutional Ownership

87.4% of State Street shares are owned by institutional investors. Comparatively, 64.0% of Live Oak Bancshares shares are owned by institutional investors. 0.3% of State Street shares are owned by insiders. Comparatively, 24.9% of Live Oak Bancshares shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares State Street and Live Oak Bancshares’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
State Street $18.37 billion 1.27 $1.94 billion $5.49 14.02
Live Oak Bancshares $800.01 million 2.21 $73.90 million $1.64 24.12

State Street has higher revenue and earnings than Live Oak Bancshares. State Street is trading at a lower price-to-earnings ratio than Live Oak Bancshares, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and target prices for State Street and Live Oak Bancshares, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
State Street 2 6 4 0 2.17
Live Oak Bancshares 0 1 2 0 2.67

State Street currently has a consensus target price of $81.83, suggesting a potential upside of 6.08%. Live Oak Bancshares has a consensus target price of $41.50, suggesting a potential upside of 3.91%. Given State Street’s higher possible upside, equities analysts clearly believe State Street is more favorable than Live Oak Bancshares.

Profitability

This table compares State Street and Live Oak Bancshares’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
State Street 10.59% 11.86% 0.90%
Live Oak Bancshares 9.24% 8.67% 0.68%

Dividends

State Street pays an annual dividend of $2.76 per share and has a dividend yield of 3.6%. Live Oak Bancshares pays an annual dividend of $0.12 per share and has a dividend yield of 0.3%. State Street pays out 50.3% of its earnings in the form of a dividend. Live Oak Bancshares pays out 7.3% 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. State Street has increased its dividend for 12 consecutive years. State Street is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

State Street beats Live Oak Bancshares on 11 of the 17 factors compared between the two stocks.

About State Street

(Get Free Report)

State Street Corporation, through its subsidiaries, provides a range of financial products and services to institutional investors worldwide. The company offers investment servicing products and services, including custody, accounting, regulatory reporting, investor, and performance and analytics; middle office products, such as IBOR, transaction management, loans, cash, derivatives and collateral, record keeping, and client reporting and investment analytics; finance leasing; foreign exchange, and brokerage and other trading services; securities finance and enhanced custody products; deposit and short-term investment facilities; investment manager and alternative investment manager operations outsourcing; performance, risk, and compliance analytics; and financial data management to support institutional investors. It also engages in the provision of portfolio management and risk analytics, as well as trading and post-trade settlement services with integrated compliance and managed data. In addition, the company offers investment management strategies and products, such as core and enhanced indexing, multi-asset strategies, active quantitative and fundamental active capabilities, and alternative investment strategies. Further, it provides services and solutions, including environmental, social, and governance investing; defined benefit and defined contribution; and global fiduciary solutions, as well as exchange-traded funds under the SPDR ETF brand. The company provides its products and services to mutual funds, collective investment funds, UCITS, hedge funds and other investment pools, corporate and public retirement plans, insurance companies, foundations, endowments, and investment managers. State Street Corporation was founded in 1792 and is headquartered in Boston, Massachusetts.

About Live Oak Bancshares

(Get Free Report)

Live Oak Bancshares, Inc. operates as the bank holding company for Live Oak Banking Company that provides various banking products and services in the United States. It operates through two segments, Banking and Fintech. The company accepts various deposit products, including noninterest-bearing demand, as well as interest-bearing checking, money market, savings, and time deposits. It also offers commercial and industrial loans; construction and development loans; owner occupied and non-owner occupied collateral commercial real estate loans; and commercial land loans. In addition, the company provides settlement, accounting, and securitization services for government guaranteed loans; financing for renewable energy application industry; wealth and investment management services to high-net-worth individuals and families; and investment advisory services to a series of funds focused on providing venture capital to new and emerging financial technology companies. Live Oak Bancshares, Inc. was incorporated in 2008 and is headquartered in Wilmington, North Carolina.

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